Sales and Income Tax

Querist : Anonymous (Querist) 28 March 2010 This query is : Resolved
How much Income and Sales tax is to be paid on readymade garments trading?

I deals in fabric's. Is there any seperate kind of tax on fabric also?

Is VAT also to be paid on garments trading?

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A V Vishal (Expert) 28 March 2010
As far as sales tax is concrned, since you have not said to which state you belong/doing business it is difficult to answer the question since some states have abatements etc... however, the general rate is 12.5% on garments.

Further income tax is determined upon the constitution of your business, business turnover and profits earned.

Querist : Anonymous (Querist) 28 March 2010
I belong to Delhi.

Sumit Batra (Expert) 29 March 2010
Yes VAT is payable on sale of fabric. It is chargable to 12.5% VAT in delhi. INCOME Tax would be payable on the income/ profits earned by you from business.