Service tax levy


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Querist : Anonymous

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Querist : Anonymous (Querist)
03 July 2012 Does Embroidery work attracts Service Tax?

03 July 2012 Whether after embroidery, the cloth is handed over to the party? Or it is pure labour contract?


However, this is not in the negative list and hence will come under service tax levy. One can claim exemption for first 10 lacs (SSI).

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Querist : Anonymous

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Querist : Anonymous (Querist)
23 July 2012 Sir,
Item No. 30 of Notification No. 25/2012-ST, dated 20-06-2012 grants exemption to services of intermediate production process provided as a job work in relation to specified goods.

(30) Carrying out an intermediate production process as job work in relation to -

(a) Agriculture, printing or Textile processing.

Does Textile Process includes Embroidery Work?

23 July 2012 In the Service Tax Act, Textile processing has not been defined.

But in General, any process related to textile i.e. cloth folding , Dyeing, Bleaching, Printing ,washing , Polishing, Embroidery including computer designed embroidery can be called as textile processing. If the party pays excise duty on the job work materials i.e finished stock, there is no service tax by the service provider, i.e job worker.

Before claiming exemption under the above head, kindly consult your Auditor/Tax consultant for another opinion.

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Querist : Anonymous

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23 July 2012 Thank You Sir


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