Taxability under service tax - category

[madhavvan n]

Company is engaged inprinting of posters stickers leaflets brochures annual reports calendars directories technical manual and stationery work whether above activity is taxable service and under which category Company charges vat and it is supplying the finished items as described above on the same transactioon will vat and service tax apply

[Rama Krishana]

The services in question are in the nature of business auxiliary service or alternatively in the nature of supply of goods as per the specification of the customer. This issue controversial in excise too. Since the most likely taxable cattery in the service tax is the "business auxiliary service" the same has been exempted from this category by notification no. 14/04. Therefore, in my view on this transaction, service tax should not be applicable on the activity in question.

AI Summary

Business auxiliary service: bespoke printing may be treated as supply of goods or exempted service, limiting service tax applicability. Characterisation of printing and finishing of specified materials determines tax treatment: as either business auxiliary service or as supply of goods as per customer specification. If treated as business auxiliary service, an exclusion notification precludes service tax; if treated as sale of finished goods and VAT is charged, service tax is not applicable.