Service tax on fabrication charges of readymade garments

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26 June 2012 Dear sir, our client is a manufacturer of readymade garments, he take services from the various persons like cutting of fabric, stiching and tailoring charges of cloth. Whether service tax is applicable on these services or not. If not under which section please specify.

26 June 2012 No service tax is not applicable on such job work as the ultimate product is chargeable to excise duty.
In the proposed scheme of mega notification, it is mentioned.

26 June 2012 Notification No.12/2012-Service Tax, dated 17th march, 2012.


26 June 2012 Dear sir,
whether excise duty is applicable

26 June 2012 Readymade garments are liable for excise duty.

26 June 2012 dear sir,
one more question about this query, whether excise duty is applicable on non branded readymade garments also.If not, then specify whether service tax is applicacable on job work related to manufacturing of readymade garments

26 June 2012 No, excise duty is not leviable on unbranded and appropriate duty is not payable by the principal manufacturer.
Hence, Service tax will be paid by such job worker if it exceeds the exemption limit of Rs. 10 lakhs.

26 June 2012 Thank You, Sir




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