TaxTMI 
TaxTMI 
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.
computer embroider/embroidery
14 Feb 2011 
1 Reply 
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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. (AI Summary)
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. (AI Summary)