Interior decorator services under service tax
“Interior Decorator” means any person engaged, whether directly or indirectly, in the business of providing by way of advice, consultancy, and technical assistance or in any other manner, services related to planning, design or beautification of spaces, whether man-made or otherwise and include a landscape designer.
“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 manmade or otherwise, in any manner.
An issue has been raised as regards the basis on which determination of the service tax liability on on-going projects (on date of service tax coning into effect) is to be made. In this regard it is clarified that service tax is payable only in respect of services rendered on or after the date on which the service tax provisions come into force. Service tax is not required to be paid on payments received for services rendered prior to the service tax concerned being notified.
Where an architect/interior decorator sub-contracts part/whole of his work to another/interior decorator, In such cases, if the principal architect pays the service tax on services rendered by him to his client, the sub contracting architect is not required to pay the service tax.
However, service tax would be required to be paid in case where sub contracting is to a different service category.
For example, where an architect sub contracts is work to a consulting engineer, then service tax would be required to be paid by both the architect and the consulting engineer on the services rendered by them. Similarly, a market research agency would be required to pay service tax on services rendered by it to an advertising agency, even if the advertising agency is also liable to pay service tax on the amount billed to its client for advertising services (which interlia includes the amount paid by the advertising agency for such market research services to the market research agency.)
It is also clarified that service tax is not leviable on supply of materials, items of furniture’s or decoration per se but on services rendered in any manner concerning planning, design or beautification of spaces.
The services rendered by Art Directors of films and others who render services of design etc. for setting up temporary structures/ settings for shooting etc. do not attract the service tax levy as such interior decorator has no permanency and is only of temporary nature.
Interior Decorator means any person engaged whether directly or indirectly in the business providing by the way of advise, consultancy, technical assistance or in any other manner services related to planning design or be antifriction of spaces, whether man made or otherwise. Since Vastu/Fen Shui Consultants are offering services by way of advise relating to planning and designing of spaces, they come under the category of interior decorators.