Dying of clotes, sarees etc taxable under service tax or not

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Harish Chandra (Querist)
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12 April 2012 My Brother is engaged in Dying of Clotes, Sarees etc. in Indirapuram, Gzb. UP,

His client give him clotes, saarees etc for dying and he dyes clothes and return coloured clothes to his client, his previous turnover was about Rs. 800000/-, and in FY 2012-13 he expected more than 1000000 turnover.

My Questions are

1. is this service will be taxable in Service tax
2. If yes, covered in which service.
3. When he has to Registered with Service tax if taxable.

Harish Chandra

Harish Chandra (Querist)
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16 April 2012 please answer

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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21 July 2024 Based on the information provided, here are the answers to your questions regarding the taxation of dying clothes, sarees, etc., under service tax:

1. **Taxability under Service Tax:**
Yes, the service of dying clothes, sarees, etc., is taxable under service tax. This falls under the category of "Processing and Job Work Services" provided under Section 65(105)(zzd) of the Finance Act, 1994.

2. **Covered Service:**
The specific category that covers such services is "Processing and Job Work Services." These services involve any treatment or process applied to goods belonging to another person and includes dyeing.

3. **Service Tax Registration:**
Your brother will need to register for service tax if his aggregate turnover of taxable services exceeds Rs. 9 lakhs in a financial year. Since he expects a turnover of more than Rs. 10 lakhs in FY 2012-13, he is required to register for service tax.

- Registration should be done within 30 days from the date he becomes liable to pay service tax, which in his case would be when his turnover crosses Rs. 10 lakhs in the current financial year.
- The registration process involves filling out Form ST-1 and submitting it electronically through the ACES (Automation of Central Excise and Service Tax) website.

It's important for your brother to comply with the service tax regulations and register in a timely manner to avoid penalties for non-compliance. Additionally, he will need to charge service tax on the invoices raised for the dyeing services provided to his clients once registered.

For specific guidance tailored to his situation, it's advisable to consult a qualified tax professional or visit the official website of the Central Board of Indirect Taxes and Customs (CBIC) for the latest information and forms related to service tax registration.

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