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

Tailoring classification: whether stitching is manufacture or a taxable service depends on product transformation and job work status.
Whether tailoring is a taxable service or manufacture depends on whether stitching effects a transformation into a new finished product; if a new product results it may amount to manufacture and fall outside service taxation, whereas alterations or contract job work may remain taxable as a service unless specific job work exemptions for textile processing apply.