Is there service tax on tailoring

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2013 dear sir
i am doing tailoring activity where customer gives his fabric and i have to make his shirt and trouser. and my turnover is above 10lakhs per annum
question-
is service tax applicable on me YES or NO
KINDLY CLARIFY

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 March 2013 theoretically yes. unless any service is not placed in the negative list, it is taxable.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 March 2013 dear Nikhil ji
my CA says that TAILORING is a manufacturing activity similar to GARMENT manufacturing, hence SERVICE TAX is not applicable. My CA says that all types of manufacturing are governed by laws pertaining to CENTRAL EXCISE.

QUESTION -
What is your viewpoint on my CA's opinion ? Please clarify in detail

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 March 2013 Dear Suraj,

My view is based on a Grant Thornton publication. There are alternative views that you are liable to service tax only if your tailoring activity involves designing ie to say that if you are just doing stitching, service tax is not applicable.

Kindly refer to the following links and apply them to the facts of your case:

https://www.caclubindia.com/experts/service-tax-on-tailoring-charges-366840.asp#.UTbANaNr_BE

https://www.caclubindia.com/experts/is-service-tax-applicable-for-tailoring-business-1089234.asp#.UTbANaNr_BE

www.grantthornton.in/html/services/tax-services/indirect-tax/service-tax.php

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