vat on job work of Textile Industries

[Pramod Kumar]

Dear Sir,

we are doing cotton fabric job work in up vat. what vat charge on job work.

[YAGAY andSUN]

Works Contract Tax would be applicable on such transaction depending on the scheme you choose.

AI Summary

Works Contract Tax applies to textile job work and depends on the employer's chosen taxation scheme. Cotton fabric job work in the textile industry is treated as subject to Works Contract Tax, and whether VAT applies depends on the taxation scheme selected by the parties; the operative levy is Works Contract Tax with scheme-dependent consequences under state tax rules.