uniform stiching

[Ramesh Kurhade]

We did contact of uniform​ stitching of ₹ 40 lakh with Indian Navy does it comes under service tax?

[Himansu Sekhar]

Please refer issue I'd 110641

[KASTURI SETHI]

You are doing job work for Navy. Job-work was earlier covered under BAS. No exemption for job work to Navy even now.. It attracts Service Tax under the category of 'Other Than Negative List'. Must read reply of Sh.Sanjay Malohtra, CS as also advised by Sh.Himansu Sha, an expert.

[Himansu Sekhar]

Correct sir

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir. Thanks.

AI Summary

Service tax liability on job-work: uniform stitching for the navy is taxable under the non negative list services. The activity constitutes job work and was previously classifiable under Business Auxiliary Services; there is no exemption for job work performed for the navy. Consequently, provision of uniform stitching to the Navy falls within taxable services under the non negative list framework and attracts service tax as an ordinary taxable service.