Service tax on embroidery work

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2013 Please give your professional opinion in this case-

A person is involved in the business of embroidery (hand work, adda work and other related embroidery work) by employing certain workers under him. The orders for this are being taken from 100% EOU as well as other companies.

I want to know whether the service tax is applicable on the billing. If so on what amount and what about the TDS part.

I belief sales tax is not applicable on this. Your early response is needed.

Thks

CA Suresh Jain

CA Suresh Jain (Expert)
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27 September 2013 The embroidery is a process of manufacture/production and therefore, covered under negative list and not taxable.

TDS is applicable @ 2%

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2013 Thanks Sir

Will the answer be same if the work is being done on readymade garments only i.e. there is no stitching process involved.
And if service tax is not applicable, whether the person needs to register with any other law like sales tax, excise etc.

Please reply early, this is urgent.

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CA Suresh Jain

CA Suresh Jain (Expert)
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29 September 2013 The answer remains the same as this still continues to be a process of manufacture/production.

Since, above is not liable to service tax and Excise and if this is the only activity or product you are not required to register under service tax and excise. Please check whether you are liable for any RCM, if so need to register undr service tax
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disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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