Beauty treatment services
Service tax is imposed on beauty treatment services from 16.08.2002 vide Notification No. 8/2002-S.T.,dated 01.08.2002
“Beauty Treatment” includes hair cutting, hair dyeing, hair dressing, face and beauty treatment, cosmetic treatment, manicure, pedicure or counseling services on beauty, face care or make-up or such other similar services;
“Taxable Service” means any service provided or to be provided to any person, by a beauty parlor in relation to beauty treatment;
“Beauty Parlor” means any establishment providing beauty treatment services;
Value of Taxable Service: Gross amount charged by the beauty parlor in relation to beauty treatment services.
Clarifications issued by the Board:
- As per section 65, “beauty treatment” includes face and beauty-treatment, cosmetic treatment, manicure, pedicure or counseling services on beauty face care or make-up and “beauty parlor” means any establishment providing beauty treatment services. The taxable service, as per section 65 means any service provided, to any person, by a beauty parlor in relation to beauty treatment.
- This service covers the beauty treatment such as facial, manicure, pedicure and other make ups provided by beauty parlors. However, it does not include hair cutting and shaving. Further, it does not include plastic surgery / cosmetics surgery done to improve the appearance, as they are not the kind of service provided by the beauty parlors. These are more appropriately classifiable as medical services (vide Finance Act, 2007. Cosmetic and Plastic surgery have been made taxable under a new category).
- For providing beauty services, parlors use materials such as cosmetics and toilet preparations. A point has been raised as to whether the cost of such materials will be included in the value of taxable service. It is clarified that these materials are essential for providing the service and they are not sold as such but used for treatment such as facials etc. Therefore, they are integral to the service provided. Hence service tax will be charged on the gross amount and no abatement is admissible on account of the value of material consumed in providing the service.
- Often beauty parlors also sell cosmetics in retail. Quite obviously, no service tax is payable on mere sale of cosmetics or any other material.
Amendments have been made in the definition of ‘beauty treatment’ (in Budget 2005-06) so as to cover comprehensively all services provided by beauty parlors including hair cutting, hair dressing and hair dyeing within the purview of service tax. – M.F. (D.R.) letter F.No. B1/6/2005-TRU, dated 27-7-2005-2006 (1) S.T.R. (C48)