Stitching by tailor- service tax or excise duty ?

CA Himanshu Bansal (Risk Manager) (2345 Points)

05 September 2014  

Hi,

I am just wanted to know what is the tax treatment on the stitching work done by tailoring shops..

We give cloth to them for stiching, surely this is jobwork.Now the process also amounts manufacturing.So according to me there should be excise duty on their work..

Service tax is levied in jobwork on the "process not amounting to manufacture".Here the process amounts to manufacture.

I want more supporting for this view..Pls discuss.