We are doing job work for trousers, party is providing fabric rest all the material including packing are purchased by us .i want to know what will be the vat % we have to charge when we return the trousers to party. and what set off we are eligible for the material purchased for trouser making.
It is not known, which state you are talking about. Anyway, in general every state has a provision for taxing work contract. Please refer the relevant provision of the state VAT and the VAT paid on purchase of trims shall be available for input credit.
Commercially, it is suggested that you sell all trims to the party separately to avoid confusion. For further clarification you may contact me- Suresh Jain at firstname.lastname@example.org