computer embroider/embroidery

[subhash agarwal]

I have a query  because I am confused: different people have different opinion, hence  I am submitting my query to this forum:  textile processing is exempted from service tax, and  I wanted to know whether computer embroidery or machine embroidery comes under textile processing or not?  I request this forum to give its valuable opinion.

[Surender Gupta]

Textile process is exempt from service tax. There is no condition in the notification that particular type of processes is exempt or particular method of processing is exempt. Any processing which is to be held as textile processing shall be exempt. See this notification (14/2004 ST). Therefore im my view as long as embroidery or machine embroidery are related to textile, the same shall be exempt from service tax.

AI Summary

Textile processing exemption applies to embroidery services when the work is functionally related to textile processing. The advisory view is that the textile processing exemption for service tax is method-neutral: any processing activity that is related to textiles qualifies. Accordingly, embroidery, including machine or computer embroidery, when performed on textile goods and characterised as textile processing, should fall within the exemption rather than being excluded due to the method used.