https://www.taxtmi.com/forum/issue?id=106784 Classification of textile-processing activities determines VAT and service-tax treatment: composition VAT applies as prescribed; service tax is payable on the service portion with CENVAT credit where applicable. Tailoring, lacking transfer of property, is not a works contract and not chargeable to service tax. Dyeing is taxable to the extent it effects transfer of property; consumables-only processing is not a taxable transfer. Embroidery may be taxable to the extent thread is transferred into the goods; intermediary or ancillary processing without transfer falls outside service-tax incidence. en-us Thu, 08 May 2014 10:40:26 +0530 Thu, 23 Jan 2025 15:57:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=106784 Classification of textile-processing activities determines VAT and service-tax treatment: composition VAT applies as prescribed; service tax is payable on the service portion with CENVAT credit where applicable. Tailoring, lacking transfer of property, is not a works contract and not chargeable to service tax. Dyeing is taxable to the extent it effects transfer of property; consumables-only processing is not a taxable transfer. Embroidery may be taxable to the extent thread is transferred into the goods; intermediary or ancillary processing without transfer falls outside service-tax incidence. Discussion-Forum VAT / Sales Tax Thu, 08 May 2014 10:40:26 +0530 https://www.taxtmi.com/forum/issue?id=106784