Tax rate on imported fabric

1315 views

Save Share

Join Us Follow Us Add as Source

Sourabh

Article

101 Points Posted on 29 January 2013

Dear Sir / Madam

We have imported Nylon & Polyster Fabric from China. We have paid BCD 10 %, CVD 12% & SAD 4%.

We have sold the goods in Gujarat after processing (Dyeing & Designing the fabric) by taking the delivery from Nava Sheva port to Gujarat. Processing is done in Gujarat at our godwon. We are not registered with Guajrat Sales Tax Department & Have not charged any vat.

Are we liable for VAT Tax???? Is there any exemption on Fabric for the same in Sales Tax??

Waiting for early reply

Replies (2)

Mr Subrata Dasgupta

Finance Professional

170 Points Posted on 30 January 2013

Dear Saurabh

You are liable to Gujarat VAT on the fabric sold if your Turnover is above Rs.50,000 or you are liable to pay Rs.5000 or more as tax in Gujarat. Since you have not mentioned your turnover or the value of the imported consignment, i cant be more specific.

I presume that your liability to pay tax is definitely more than Rs.5000 on the imported fabric when sold in Gujarat after processing. It will be good if you can take steps to get yourself registered within a month of your turnover crossing the above limits.

sudipta mandal

MGR

22 Points Posted on 08 February 2014

Dear Sir /Madam

We have imported Nylon & Polyster greigh Fabric from China value 7.25 cr.. We have paid VAT @ 5% on the same . We have received the goods and processed (Dyeing) the goods , and sold the same in Gujarat . Are we liable for VAT on the sale of finish fabric sales value ? waiting for the valuable reply .......... thanks in advance