Service tax applicability for flower arrangements

3003 views 4 replies

Is service tax applicable for floral arrangement service?

If yes, please let me know whether reverse charge is applicable if a company receives flower arrangement service from an individual?

Replies (4)

No, no applicabilty of Rev chg...because such service is not notified in Notif No. 30/2012 dated Jun 20,2012

but in case of works contract with an individual (florist) won't reverse charge be applicable?

Section 65 of the Finance  Act defines the work contract.The essential engredients of the same are:

a)There should transfer in goods while executing such contract and that transfer must be leviable to sale Tax as sale of goods .

b) Such contract should be for the purpose of construction,erection,installation,commissioning ........etc

So ,you are not covered under reverse charge method.However as this activity does find it's place in negative list so it is taxable, subject to applicable exemption.

Service means-

activity done in lieu of a consideration.

so arrangement of flowers is done for a consideration. (money)

so it is leviable to ST.

however the liability of provider arises only wen his turnover in previous yr is 10 lacs.

and dis activity isnt stated in negative list or exemption,

so dis attracts st.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register