Hello Gursaran,
the VACL applies to all ports belonging to the Vlan so it can apply also to trunk ports and traffic coming from a L2 only access-layer switch.
However, if the objective is to limit communication within an IP subnet the VACL on the multilayer switch can be bypassed if both hosts are on the same L2 only access switch: in this case the frames don't travel to the switch with the VACL applied
Hope to help
Giuseppe