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Service Tax on Tailoring Activity, Service Tax

Issue Id: - 110641
Dated: 15-7-2016
By:- Prakash Gupta
Service Tax on Tailoring Activity

  • Contents

Dear All,

I have following queries on tailoring activity :

1. In case where fabric is supplied and stitched by the tailor, whether this activity is manufacturing or service ? In whatever applicable case what would be the rate of the Tax ?

2. What would be the tax applicability in case case where fabric is supplied by the customer and stitched by the tailor?



Pankaj Singh

Posts / Replies

Showing Replies 1 to 15 of 18 Records

1 Dated: 15-7-2016

No Central Excise duty on tailoring as per Board's Circular No.334/8/2016-TRU dated 29.2.16 (Para no.3.1.2). The aspect of ST being examined.

2 Dated: 15-7-2016
By:- Ganeshan Kalyani

Sir, Tailoring is a service. Thanks.

3 Dated: 15-7-2016

Just like dry-cleaning, Sir

4 Dated: 16-7-2016

This service is covered under the category, "Other Than Negative List".

5 Dated: 16-7-2016
By:- Ganeshan Kalyani

Sir, w.e.f. 01.07.2012 all services are taxable unless covered by Mega Exemption Notification or Negative list or specifically covered by any Notification. Thanks.

6 Dated: 16-7-2016

Rightly said Mr. Ganeshan ji.

Furthermore the same can be exempted if the assessee proves that the same is carried out as an Intermediate production process as Job work in relation to Textile Processing. (Sr. No. 30 of Notification No. 25/2012-ST dated 20.06.2012)

7 Dated: 16-7-2016
By:- Ganeshan Kalyani

Sri Sanjay Sir Thanks.

8 Dated: 18-7-2016
By:- Prakash Gupta

Dear All,

As per section 66D(f) (Negative list) of the finance act 1994, Services by way of carrying out any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption; is out of the ambit of the service tax. And since stitching of the cloths is manufacturing covered under chapter heading 6201 and also affirmed in case of the Commissioner of the central excise vs Diwan Saheb fashion Pvt Ltd 2012 (10) TMI 626 - DELHI HIGH COURT on 15.010.2012.

further as replied by Mr. Kasturi Sethi No central excise duty on tailoring as per the board TRU circular dated 29.02.2016 (Para 3.1.2).

So on the basis of the above should i conclude as stitching is out of the ambit of the service tax since it amount to manufacture and no excise duty will be leviable as it is specifically exempted by board circular.



Pankaj Singh

9 Dated: 18-7-2016

Sh.Prakash Gupta Ji,

Thanks for deep study. I really appreciate your art of expression/presentation.

10 Dated: 18-7-2016
By:- Ganeshan Kalyani

Sir, the query in part two won't fit into your interpretation. Thanks.

11 Dated: 19-7-2016

Sh.Ganeshan Kalyani Ji,

Re-examined. Example of second query is job-work like drying cleaning service manner. Job-work is not out of service tax net. It is under , "Other Than Negative List" Sh.Prakash Gupta/Pankaj Singh's first part is correct. Reply fits into first party.

Sh.Kalyani Ji, Thanks for penetration into reply as well as query. To error is human.

12 Dated: 19-7-2016

Dear Friends,

firstly as per circular, tailoring is exempted from duty only in case of retail establishments and not for all.

Furthermore, activity involved in stitching needs to be seen whether it resulted in new product or alteration On existing product. If finished product comes into existence during tailoring job, it amounts to manufacture or else not. It may qualify as intermediate product and considered as service, thus exempted under Sr No 30 of notf no 25/2012-ST.

Hence Querist should clearly state the product resulted from tailoring activity.

13 Dated: 19-7-2016

Sh.CS Sanjay Malhotra Ji,

Sir, Thanks a lot for throwing more light on the issue. No end of road to learning.

14 Dated: 4-7-2017
By:- dinesh ahuja

Dear All,

I have following queries on tailoring activity :

1. In case where fabric is supplied for stitched by the customer for tailoring to the shop keeper , what would be the rate of the GST ?



15 Dated: 4-7-2017

Dear Querist,

You will get final and confirmed solution by tomorrow evening in this forum. Studying the issue. I hope to solve your problem.


Old Query - New Comments are closed.

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