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.

AI Summary

Textile Unit's Job Work Subject to 4% VAT on 25% Production, Clarifies Maharashtra VAT Provisions A textile processing unit in Maharashtra, handling various fabrics, sought clarification on the applicability of VAT to 25% of its production done as job work for external parties. The unit is not registered under central excise. In response, it was advised that a 4% VAT rate applies to such job work, as per Maharashtra's VAT provisions for readymade garments and textile articles. The responder invited further queries via email if the information provided was incorrect.