29 September 2010
Dear sirs, My client is giving Laundry services to pharmaceutical company, his turnover is above ten lacs. He is using eco friendly detergents of hindustan company for washing of linens. Now my question is wheather he has to collect and pay service tax on his laundry services on the sevices given to phamaceutical company. As per my understanding washing of linen with eco friendly detergent doesn't attrace service tax, only dry cleaning comes under service tax net. Please awaiting for ur reply. Thank You
30 September 2010
By instruction No. 1/2002-ST dt 18.02 , the board has clarified , certain aspects of service tax . Accordingly
Wet cleaning of cloths , that is claening of cloths with water and water soluble detergent is not covered by service tax.Howver Dry cleaner has to mention , details in the bills, otherwise it will be understood that clothes have been dry-cleaned.
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