DVAT applicable on shawl & stole

[sanjay malviya]

Dear Expert

Please advice Delhi Value added tax applicable or not on sale of shawl & stole (silk woolen , pashmina, shabano )

with hand made embroidery work , dyeing etc.

AI Summary

Shawls and stoles with embroidery taxed at 5% under DVAT Act, Entry No. 57, as apparel accessories. A query was raised regarding the applicability of Delhi Value Added Tax (DVAT) on the sale of shawls and stoles made of materials like silk, woolen, pashmina, and shabano, with handmade embroidery and dyeing. An expert clarified that these items fall under the category of apparel and clothing accessories, specifically covered by Entry No. 57 of the Third Schedule of the DVAT Act. Consequently, they are subject to a 5% tax rate as per section 4(1)(b) of the Act. The DVAT Department has confirmed this classification.