Is Service Tax applicable for school uniforms

[M Kings]

Respected Sir,

We are supplying uniforms and stationeries to kids as we have tie-up with a school.

Do we need charge parents Service tax and VAT but we are already buying items by paying service tax and VAT.

Request your help on he same.

AI Summary

VAT Applies to School Uniforms, Service Tax Does Not Unless Tailoring Involved; Distinction Between Trading and Commission Services Discussed. A discussion on the applicability of Service Tax and VAT on school uniforms supplied by a company tied up with a school. The consensus among participants is that VAT applies, but Service Tax does not, unless the service involves tailoring, which is not considered manufacturing. The debate highlights the distinction between trading and commission-based services, with trading being exempt from Service Tax. The discussion also addresses whether uniforms are made to order or ready-made, affecting tax liability. Ultimately, the decision hinges on whether the supplier is earning a profit or commission.