VAT on job work of textile processing
kiran pai
Dear Sirs, Ours is a textile processing unit, we are doing the processing of textile of all type i.e. cotton, polyester, woollen etc. Of the production 25% is the job work we are doing for the outside parties. Now please clarify my doubt about the Maharashtra VAT on this job work of textile processing by us. We are not the central excise assessee. If this process attracts VAT then please let me know how much percent. Thanks.
VAT on textile job work applies to processing of garments and made-up textiles; attracts the notified state VAT rate. VAT applies to textile job work where the processed output constitutes readymade garments, clothing accessories, made-up textile articles and sets as notified by the State Government; such taxable goods produced through job work are subject to the State VAT provision at the notified rate for those items. (AI Summary)
TaxTMI