cloth dyeing unit is paying vat on 60% of value of invoice.The dept is contesting that material consumed is more so pay vat on material consumed. What is the correct ?
Posts / Replies
Showing Replies 1 to 2 of 2 Records
Yes, they are correct in demanding of VAT on consumption of material for dyeing of cloth as it is treated as Deemed Sales. Please check the definition of Sales and Sale Price under Punjab VAT Act read with Rules made thereunder.
I also agree with the contentions of Yagay and Sun.