TaxTMI 
TaxTMI 
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.
Is Service Tax applicable for school uniforms
20 Mar 2017 
15 Replies 
7460 Views Asked by
Guest 
Service tax on tailoring: may apply where activity constitutes a service; trading in readymade uniforms attracts VAT only.
VAT applies to resale of ready made school uniforms and stationery because resale is trading and exempt from Service Tax. Stitching or tailoring to customer specifications constitutes job work/service rather than manufacture and can attract Service Tax unless specifically exempted. Whether Service Tax applies depends on factual characterisation: trading for profit (VAT only) versus acting as a commission agent (potential Service Tax liability), with recent reclassification of the service entry affecting statutory treatment. (AI Summary)
VAT applies to resale of ready made school uniforms and stationery because resale is trading and exempt from Service Tax. Stitching or tailoring to customer specifications constitutes job work/service rather than manufacture and can attract Service Tax unless specifically exempted. Whether Service Tax applies depends on factual characterisation: trading for profit (VAT only) versus acting as a commission agent (potential Service Tax liability), with recent reclassification of the service entry affecting statutory treatment. (AI Summary)