Sevice tax liability on Lighting & decoration on Buildings
This query is : Resolved
26 October 2009
Sir,
I have turnover more than 10 lacks from the lighting & decoration service in buildings & temples (there is no involvement of .“pandal or shamiana").
Please tell me about the service in which covered such type of service.
Thanks & regards,
Nitin
I have turnover more than 10 lacks from the lighting & decoration service in buildings & temples (there is no involvement of .“pandal or shamiana").
Please tell me about the service in which covered such type of service.
Thanks & regards,
Nitin
26 October 2009
yes
26 October 2009
Hi Nitin,
Are you an individual?
Can your service be termes as an electrician service?
Do you supply materials for decoration and charge the cost of materials or take only rental for those.
I can understand that you are not a Mandap keeper and the above questions arise for selecting the appropriate heading which attracts your service.
Are you an individual?
Can your service be termes as an electrician service?
Do you supply materials for decoration and charge the cost of materials or take only rental for those.
I can understand that you are not a Mandap keeper and the above questions arise for selecting the appropriate heading which attracts your service.
27 October 2009
Thanks C.A.sanjay
Our Service includs decorating buildings by lights & supply of items ie fans on rental basis.
Our Service includs decorating buildings by lights & supply of items ie fans on rental basis.
25 July 2025
Got it! You're providing **lighting and decoration services on buildings and temples**, including **supplying items like fans on rental basis**, and want to know the applicable service tax treatment.
---
### Key points about **Service Tax on Lighting & Decoration Services** (pre-GST):
1. **Nature of service**:
* Lighting and decoration services provided on buildings or temples generally fall under **“Event Management Services”** or **“Renting of Tangible Goods”** depending on the facts.
* If you provide lighting & decoration **without involving mandap or shamiana**, it’s not mandap keeping service.
2. **If you supply materials (like fans) on rental basis**:
* The rental of goods attracts service tax under the category **“Renting of Immovable Property”** if the property rented is immovable.
* For movable goods like fans, it may attract tax under **“Renting of Tangible Goods”** service.
3. **If your service mainly involves lighting & decoration work**:
* This can be treated as **“Event Management Service”** or under **“Works Contract Service”**, depending on contract and specifics.
* But if it’s just **lighting installation and decoration without events**, it might be closer to **“Electrical & Lighting Installation Services”** (if such category was specified), but such a category was limited.
4. **Threshold Limit**:
* You mentioned turnover over Rs. 10 lakh, which was earlier the service tax threshold (now replaced by GST).
* You must register for service tax and pay accordingly.
---
### What to do?
* Since you supply fans on rental basis, this part of your service would fall under **“Renting of Tangible Goods”** and attract service tax.
* The lighting and decoration portion may be taxable as **Event Management Service** or as a **works contract** (if it involves supply of materials and installation).
* If you are only charging for electrical services (without material supply), it might be classified as **“Electrical Works Service”**.
---
### Suggestion:
* Review your invoices and contracts to see how charges are split between supply of goods (rental of fans) and service (decoration and lighting).
* Register for service tax (or GST now) accordingly and charge applicable tax.
* Consult a professional for exact classification to avoid disputes.
---
If you want, I can help draft a more detailed classification note or help check the latest GST treatment (since service tax is now subsumed into GST). Would you like that?
---
### Key points about **Service Tax on Lighting & Decoration Services** (pre-GST):
1. **Nature of service**:
* Lighting and decoration services provided on buildings or temples generally fall under **“Event Management Services”** or **“Renting of Tangible Goods”** depending on the facts.
* If you provide lighting & decoration **without involving mandap or shamiana**, it’s not mandap keeping service.
2. **If you supply materials (like fans) on rental basis**:
* The rental of goods attracts service tax under the category **“Renting of Immovable Property”** if the property rented is immovable.
* For movable goods like fans, it may attract tax under **“Renting of Tangible Goods”** service.
3. **If your service mainly involves lighting & decoration work**:
* This can be treated as **“Event Management Service”** or under **“Works Contract Service”**, depending on contract and specifics.
* But if it’s just **lighting installation and decoration without events**, it might be closer to **“Electrical & Lighting Installation Services”** (if such category was specified), but such a category was limited.
4. **Threshold Limit**:
* You mentioned turnover over Rs. 10 lakh, which was earlier the service tax threshold (now replaced by GST).
* You must register for service tax and pay accordingly.
---
### What to do?
* Since you supply fans on rental basis, this part of your service would fall under **“Renting of Tangible Goods”** and attract service tax.
* The lighting and decoration portion may be taxable as **Event Management Service** or as a **works contract** (if it involves supply of materials and installation).
* If you are only charging for electrical services (without material supply), it might be classified as **“Electrical Works Service”**.
---
### Suggestion:
* Review your invoices and contracts to see how charges are split between supply of goods (rental of fans) and service (decoration and lighting).
* Register for service tax (or GST now) accordingly and charge applicable tax.
* Consult a professional for exact classification to avoid disputes.
---
If you want, I can help draft a more detailed classification note or help check the latest GST treatment (since service tax is now subsumed into GST). Would you like that?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR9- ITC
- Audit of F and O T/O
- GST 9- Table 8
- REVENUE RECOGNITION AS PER IND AS 115
- RCM on GTA Services
- How to update Transaction data in broker samco account holding after transfer shares KARVY
- Applicablity on tds
- Unable to generate and save json file for updated return
- GST payable under RCM
- WRONGLY UPLOADED 10IF FOR COOPERATIVE SOCIETY
- Related to Rate of Depreciation
- Mismatch of Sales Invoice in GSTR-1
- Query on Mismatch of Sales Invoice in GSTR-1
- Import purchase entry
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
Trending Online Classes
CAclubindia
