Service Tax on Tailoring Activity

[Prakash Gupta]

Dear All,

I have following queries on tailoring activity :

1. In case where fabric is supplied and stitched by the tailor, whether this activity is manufacturing or service ? In whatever applicable case what would be the rate of the Tax ?

2. What would be the tax applicability in case case where fabric is supplied by the customer and stitched by the tailor?

Thanks,

Best,

Pankaj Singh

AI Summary

Debate on Service Tax Applicability for Tailoring: Manufacturing or Service? GST Rates Discussed per Goods Nature. A discussion on a forum revolves around the applicability of service tax on tailoring activities. Participants debate whether tailoring constitutes a manufacturing or service activity, particularly when fabric is supplied by customers. It is noted that tailoring is generally considered a service and is not subject to central excise duty, as per a Board's Circular. However, if tailoring results in a new product, it may be considered manufacturing and exempt from service tax under specific conditions. The conversation also touches on the applicability of GST, suggesting different rates based on the nature of the goods and agreements between parties involved.