Service Tax For Dry cleaning Services

3:19 PM
Dry cleaning services provided to a customer by a dry cleaner is liable to service tax. Dry cleaner has been defined as any commercial concern providing service in relation to dry cleaning.

The term commercial concern denotes a firm or a business entity or organisation engaged in commercial activities like sale, purchase or providing services for consideration with a profit motive.

Thus, a hotel’s in-house dry cleaning facility is a commercial concern and liable for service tax if charged for separately. Dry cleaning of own clothes, linen and bedding is not covered. For the service to be taxable, it must be rendered to the guests/customers.

However, if the hotel engages a dry cleaning concern to do the job, then the hotel will step into the shoes of the customer and the dry cleaning concern will be liable to pay service tax.

Share this

Related Posts

Previous
Next Post »