Ramanuj (Accountant.) (834 Points)
14 March 2013Dear all
We have made school uniform. Faric receipt from dealer & i have made shirt with total material have bear by us. it is applicable WTC OR Dvat Which rate of Vat Charges to dear. Dealer demand Tax Invoice. TDS is applicable on job work or material. Kindly resolve the above query,
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 16 March 2013
In making of shirts if you are using your own material then you will have to charge 12.5% on the value of material only in the tax invoice. This sale is to be covered under DVAT Act . If they supply the required fabrics to you then you have raise only a labour bill,which is not liable for dvat. It depends on the purchase order. issued to you. If you make uniforms out of cloth bought by you,you can treat it RM garments and issue invoices accordingly with 5% dvat(pl check up rate).......mjk
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