SERVICE TAX ON WET CLEANING

[ASAD SHAIKH]

RESPECTED SIR

                                      AS I AM DOING OF WET CLEANING  CLOTH WASHING BUSINESS AS LIKE DHOBHI  

AM I LIABLE TO GET REGISTERED WITH SERVICE TAX AS I AM NOT DOING ANY PROCESS OF DRY

CLEANING ONLY CLOTHS WASHED WITH WATER & WITH DETERGENTS SOLUBLE IN WATER   AS MY TYPE OF BUSINESS IS NOT AVAILABLE IN NEGATIVE LIST FROM 1/07/2012 AND ITS POSSIBLE THAT I MAY CROSS TURN OVER ABOVE THE LIMIT OF TEN LAKHS IN THIS FINANCIAL YEAR SO PLEASE GIVE PROPER GUIDANCE & ADVICE FOR THE PROBLEM AS I AM IN GREAT PUZZLE  SEEING THE SLAB OF SERVICE TAX ITS TO HIGH FIR SUCH TYPE OF BUSINESS  SO PLEASE GIVE ADVICE FOR THE SAME TO BE GET REGISTERED OR I AM EXEMPTED FROM SERVICE TAX HOPING POSITIVELY FOR THE SAME

[rajkumar shukla]

It is now taxable...  limit is 10 lakhs

[YAGAY andSUN]

Dear Asad,

Under the Negative List (Service Tax regime), if any service, which not specifically mentioned in the Negative list and Mega Exemption Notification, then, by default, the same would be covered under the purview of Service Tax and would be treated as taxable service under "services other than 119 services" classification. Hence, taxable.

However, you may also opt for advance ruling from the Service Tax Department, if , stake involved in this matter is high.

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

AI Summary

Service tax applicability on wet cleaning: water-based laundry falls within taxable services and may require registration when turnover exceeds threshold. Water-based garment washing (wet cleaning) is not listed in the Negative List or mega exemptions and therefore constitutes a taxable service by default; providers must register and account for service tax once statutory turnover thresholds are exceeded, and may pursue an advance ruling to resolve classification or registration uncertainty.