ST for Interior Decorator

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This query is : Resolved

Hemali Shanghvi (Querist)

14 November 2010 Hi,

I have a client who is into Interior Decoration. He has his own factory where he makes customized furniture as per clients needs plus provides plumbers, electrcians etc. He cherges the material, labour to the client after adding his profit. Now in this case how should one tax him? Is Service tax or sales tax applicable?

Thanks in advance

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

15 November 2010 "Interior decorator" is a person engaged, whether directly or indirectly, in the business of providing by way of advice, consultancy, technical assistance or in any other manner, services related to planning, design or beautification of spaces, whether man-made or otherwise and includes a landscape designer. [Section 65 (59)] OF SERVICE TAX, 1994

Hemali Shanghvi

Hemali Shanghvi (Querist)

16 November 2010 Hi,

Thanks for the quick reply. However, just one confusion...service tax will be applicable only on the designing part and not on the entire bill of materials and labour, right?

BALU V

BALU V (Expert)

25 November 2010 In my opinion if advice or consultancy is provided, the services are taxable under Interior Decoration. I presume the services rendered by the above person fits in Construction Services (Finishing and Completion) and Service Tax is to be paid on the gross amount without abatement. VAT charged value can be excluded.

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