TaxTMI 
TaxTMI 
dyeing job work of cloth
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....yeing job work of cloth<br> Query (Issue) Started By: - satbir singh wahi Dated:- 3-3-2017 Last Reply Date:- 17-3-2017 VAT + CST<br>Got 7 Replies<br>VAT / Sales Tax<br>Under rule 15 (4) of punjab Vat act, the dyeing unit is claiming labour , pet coke and other etp consumables and profit as deductible from Sale value , the balance is treated as taxable sale, and vat paid @6.05%. The ETO is saying ....
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....that ITC on Pet coke and etp consumable will not be allowed as deducted above for calculation taxable sale. Whether this view of ETO correct. PLs guide. Reply By YAGAY AND SUN: The Reply: Punjab-Haryana High Court M/S Khanna Paper Mills Ltd vs State Of Punjab And Another 2016 (8) TMI 249 - PUNJAB AND HARYANA HIGH COURT Reply By satbir singh wahi: The Reply: Sir Thks for reply. But Eto is sa....
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....ying that once consumables have been deducted for calculating taxable turnover you cannot claim ITC.pl guide. Reply By YAGAY AND SUN: The Reply: We could not understood the contention of the ETO as consumable and Turnover both are different from each other and both form the part of P&L Account at opposite sides. Please check the facts and revert to enable us to reply to your query. Reply By Gan....
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....eshan Kalyani: The Reply: VAT is payable on sale value. If value itself is reduced by components as mentioned in your query the VAT paid is on lesser sale value. Thus the dept is not allowing to claim set off. It seems logical. Reply By satbir singh wahi: The Reply: AS PER RULE 15(4) OF PUNJAB VAT ACT SALE VALUE 100 LESS LABOUR 15 CONSUMABLES 5 PET COKE FUEL 5 PROFIT 5 TAXABLE TURNOVER 10....
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....0-15-5-5-5=70 VAT PAYABLE 70*5.50%=3.85 BUT ITC ON CONSUMABLE AND PET COKE FUEL TAKEN. ETO SAYS ONCE YOU HAVE DEDUCTED CONSUMABLE AND PETCOKE FUEL ,ITC ON THESE ITEMS NOT ALLOWED. KHANNA MILLS CASE GIVEN DURING HEARING.SECTION 13 OF ITC , NO WHERE GIVES THIS RESTRICTION.PLS GUIDE . Reply By YAGAY AND SUN: The Reply: Well, it is P & L Account which is required for conducting the VAT/CST Asse....
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....ssment to get the gross Profit/Net Profit. This does not restrict the availment of ITC and we assume that you must had booked consumable net of ITC. Reply By satbir singh wahi: The Reply: Sir The pet coke used as fuel in dyeing unit to produce steam for dyeing process. Pls guide whether ITC is available.Khanna paper mills case they are not accepting .<br> Discussion Forum - Knowledge Sharing ....