Vat indirect taxes
This query is : Resolved
06 August 2014
Hello .
I am a retail Proprietor based in mumbai engaged in stiching and tailoring of ladies and gents garments for weddings,parties.etc.
My question is to know whether I am liable to charge clients any vat or indirect taxes on the following based scenarios.
1.Fabric (cloth) provided by client for purpose of stitching( tailoring) as per specification.( Further,Here several skilled work is outsourced by me to labourers eg .embroidery, buttoning etc).for the purpose of completing the finished outfits.
2.Client chooses ready fabric from my existing fabric stock at the store and I tailor as per clients specifications.(Here too several types of jobs for this purpose are outsourced to the unorganised skilled workers who use the required materials for completion for eg.Thread etc).
Kindly advise whether in the above two scenarios if indirect taxes such as Vat.etc are applicable and what is the justification provided on such instances.
PS : There are several tailoring retailers based in India.My question here is to know are they all subject to any such rule on indirect taxes.??
Your knowledge and experience in this important query would be highly appreciated.
Regards.
I.Pari
I am a retail Proprietor based in mumbai engaged in stiching and tailoring of ladies and gents garments for weddings,parties.etc.
My question is to know whether I am liable to charge clients any vat or indirect taxes on the following based scenarios.
1.Fabric (cloth) provided by client for purpose of stitching( tailoring) as per specification.( Further,Here several skilled work is outsourced by me to labourers eg .embroidery, buttoning etc).for the purpose of completing the finished outfits.
2.Client chooses ready fabric from my existing fabric stock at the store and I tailor as per clients specifications.(Here too several types of jobs for this purpose are outsourced to the unorganised skilled workers who use the required materials for completion for eg.Thread etc).
Kindly advise whether in the above two scenarios if indirect taxes such as Vat.etc are applicable and what is the justification provided on such instances.
PS : There are several tailoring retailers based in India.My question here is to know are they all subject to any such rule on indirect taxes.??
Your knowledge and experience in this important query would be highly appreciated.
Regards.
I.Pari
CA UMESH DULAL
(Expert)
06 August 2014
Situation 1, you have to charge service tax.
situation 2, you have to charge VAT.
situation 2, you have to charge VAT.
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