Vat for stitching clothes

Srikanth (manager) (34 Points)

05 January 2015  

HI ,

     I have a small retail customer selling women apparel in Bangalore , the customer  buys readymade and sells with a margin ie Trading and pays VAT .  The customer also buys fabric , stiches clothes and then sells as readymade apparel , for this mode of sale what is the VAT appilicable ? I am asking since VAT for fabric is 0%.