Whether Stage Decoration for marriage functions, conferences and other celebrations will amount to Transfer of Right to Use and taxable under VAT ? Or will it be a Interior Decorator's Service taxable under Service Tax ?
Stage Decoration - whether transfer of right to use or interior decorator's service ?
Ramachandran and Ramachandran Associates Subramanian
Debate on Tax Classification for Stage Decoration Services: VAT or Service Tax? Potential Fit Under 'Pandal Shamiyana Services' A discussion initiated by a legal firm questioned whether stage decoration services for events like weddings and conferences should be classified as a transfer of the right to use, taxable under VAT, or as an interior decorator's service, taxable under service tax. A response from an indirect tax consultancy suggested that such services might fall under 'Pandal shamiyana services,' indicating that service tax would be applicable. (AI Summary)