TaxTMI 
TaxTMI 
laundry carrying out ironing, washing, darning, dyeing . Is it covered in service tax from budget 2012 or not
laundry servives
13 Apr 2012 
10 Replies 
26315 Views Asked by
Guest 
Service classification: whether laundry, dry cleaning or wet cleaning attract service tax depends on activity character and billing.
Whether laundry operations like ironing, washing, darning and dyeing attract service tax turns on classification as a service and exclusion from the negative list or exemptions. A Board circular treats dry cleaning (solvent based cleaning with tagging, pre treatment and machine solvent washes) as taxable while wet cleaning, dyeing and darning are not taxable provided the bill clearly records those processes. Under the Finance Act 2012 negative list approach, activities not excluded are prima facie taxable, subject to threshold and exemption rules. (AI Summary)
Whether laundry operations like ironing, washing, darning and dyeing attract service tax turns on classification as a service and exclusion from the negative list or exemptions. A Board circular treats dry cleaning (solvent based cleaning with tagging, pre treatment and machine solvent washes) as taxable while wet cleaning, dyeing and darning are not taxable provided the bill clearly records those processes. Under the Finance Act 2012 negative list approach, activities not excluded are prima facie taxable, subject to threshold and exemption rules. (AI Summary)