Service Tax on Hand Embriodery

[Manisha Kejriwal]

In the current case cloth is given to the job worker who does the embriodery work and then return the same to the principal. Is service tax applicable on such hand embriodery work ? Plz explain the same with relevant case law,if applicable.

AI Summary

Service Tax Debate: Does Hand Embroidery by Job Workers Qualify as Manufacturing or Taxable Labor? Key Exemptions Discussed. A discussion on whether service tax applies to hand embroidery work performed by a job worker on cloth provided by a principal. The consensus suggests that if the embroidery process constitutes manufacturing, it is not taxable under service tax laws. However, if it is merely labor work and not manufacturing, service tax may apply unless the principal pays excise duty on the final product. References are made to relevant notifications and amendments, highlighting that hand embroidery typically does not qualify as manufacturing, thus not attracting service tax. Participants sought clarity on exemptions and the applicability of service tax under various conditions.