Thursday, August 4, 2011

We manufacture silk fabrics especially (silk sarees) which are described in Column 2 of I Schedule to the Additional Duties of Excise (goods of special Importance) Act 1957 (Central Act 58 of 1957). All varieties of textiles covered by the above Act are exempt from VAT under item no.4 of the I Schedule to VAT Act. However, the specific mention of silk fabric is not forthcoming. Please clarify as to whether the silk fabric is exempt from VAT under item 4 of the I Schedule to the VAT Act 2003. (Karnataka VAT)

Q) We manufacture silk fabrics especially (silk sarees) which are described in Column 2 of I
Schedule to the Additional Duties of Excise (goods of special Importance) Act 1957 (Central Act 58
of 1957). All varieties of textiles covered by the above Act are exempt from VAT under item no.4
of the I Schedule to VAT Act. However, the specific mention of silk fabric is not forthcoming. Please
clarify as to whether the silk fabric is exempt from VAT under item 4 of the I Schedule to the VAT
Act 2003.
Ans: Silk fabrics is a goods coming under all varieties of textiles and hence not liable to tax under
the VAT Act 2003.


Regards
G.Srinivas

2 comments:

  1. Hello,
    I want to know whether VAT is applicable on plain saree's ,Stitched saree's, Shirt clothes purchased from other states and sold in ap.

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