Is their service tax on tailoring ( its a manufacturing activity)
Suraj Mehta
(Querist) 05 March 2013
This query is : Resolved
dear experts
i am doing tailoring activity. My customer gives me the fabric & i stitch their GARMENTS. My CA says that there is NO SERVICE TAX because tailoring is a manufacturing activity, hence JOB WORK.
However another CA says that TAILORING is a service, hence SERVICE TAX is applicable.
QUESTION
Is SERVICE TAX applicable to me. Kindly keep in mind that my process is similar to GARMENT MANUFACTURING. Only difference is that GARMENT manufacturing is done in BULK & we (tailors) cater to individual customers orders
Jatinder Singh
(Expert) 05 March 2013
Taxable service under the law includes designing of goods intended to be worn by human beings. As a tailor, you are only involved in stitching of clothes and not any designing activity. Hence, you will not be subject to payment of service tax.
However, your remuneration from ancillary services like embroidery are subject to service tax obligations since the second part of the definition includes "any other service incidental thereto".
Raj Kumar Makkad
(Expert) 06 March 2013
You are liable for service tax within law.
Suraj Mehta
(Querist) 07 March 2013
dear Raj Kumar Makkad ji
JATINDER SINGH ji has given his opinion that i am not coming under the laws of SERVICE TAX
i am a tailor where my customer provides me the fabric & i stitch the same. The process is similar to garment manufacturing. The only difference is that GARMENT manufacturing is done in bulk, but we ( tailors ) cater to individual requirements. My business is JOB WORK. My CA says that all types of manufacturing falls under the laws of EXCISE & hence NO SERVICE TAX applies to me. Kindly give me detailed reply to your opinion that TAILORING is liable for SERVICE TAX.
