Contact     |     Login
 Interior Decorator Services Minimize
 
Definition and Meaning
Section 65(105) (q) - ‘Taxable Service’ means any service provided or to be provided to any person, by an interior decorator in relation to planning, design or beautification of spaces, whether man-made or otherwise, in any manner.
 
Levied
Services Provided Services provided or to be provided
16.10.1998 16.06.2005
 
Essential Ingredients
Services are provide or to be provided to any person.
Services shall be in relation to planning, design or beautification of spaces, whether man-made or otherwise in any manner.
Services are rendered by the interior decorator. Section 65(59) - "Interior Decorator" means any person engaged, whether directly or indirectly, in the business of providing by way of advice, consultancy, technical assistance or in any other manner, services related to planning, design or beautification of spaces, whether man-made or otherwise and includes a landscape designer.”
 
Person Liable to make payment of service tax (Service provider/ service recipient)
Any person providing the service would be liable to pay the service tax as service provider under the Act.
 
Abatement (If Any)
No abatement has been granted to any person liable to pay service tax under the Section.
 
Import of Services
Where the taxable service is provided from outside the country, the recipient of service would be treated as deemed service provider under the reverse charge mechanism and would be liable to apply for registration for paying tax on imported services. Rule 3 of Taxation of services (provided from outside India) Rules, 2006 classifies taxable services into three categories. The interior decorators services falls in the first category ie., ‘When the immovable property in respect of which the service is provided or to be provided is situated in India.’ (Rule 3 (i))
 
Notifications / Circulars
Trade Notice No 5/98-ST, dated 14.10.1998 - Services rendered by the art directors of films and others who render services of design, etc. for setting up temporary structures/ settings foe shootings etc. do not attract the service tax levy as such interior decoration has not permanency and is only of a temporary nature.
Trade Notice No 5/98-ST, dated 14.10.1998 - In case where an interior decorator sub-contracts part or whole of his work to another interior decorator, no service tax is required to be paid by the sub-contractor provided that the principal interior decorator has paid the service tax on the services rendered by him to the client and provided the sub-contracting is in respect of the same service category.
 
Case / Judgement
Oikos, in re: 2004 (174) ELT 281 - Service tax in the capacity of interior decorator is liable to be paid when the sub-contract service falls under the different category of taxable service provider ie., architect.
 
 
Copyright © 2010, MGS Advisors, All rights reserved Privacy Policy   /   Disclaimer