Service tax is imposed on different class of services and is payable on taxable service. Interior Decorator Services is one of the taxable services chargeable to service tax.

Who is “Interior Decorator”?

Interior Decorator means any person engaged, whether directly or indirectly, in any business of providing by way of advice, consultancy, technical assistance or in any other manner, services relating to planning, design or beautification of spaces, whether manmade or otherwise and includes a landscape designer.

Scope of taxable Services

Any services 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 is a ‘taxable service.

Services of vastu/Feng shui consultants are taxable – As vastu/Feng shui consultants are offering services by way of advice relating to planning and designing of spaces, so their services are also taxable under ‘Interior Decorator Services’.

Exemptions

No tax on manufacture of furniture, execution of civil work etc. – Manufacture of wooden furniture and civil and plumbing work is not a taxable service.

No tax on construction work – Pest Control, Masonry Work, Wall preparation etc. type of activities do not fall under ‘Interior Decorator Services’.

No tax on material, furniture – No service tax is payable on supply of materials, items of furniture or decoration, but on services concerning planning, design or beautification of spaces.

No tax on temporary structures – Services rendered by art directors of films and others who render services of design etc. for setting up temporary structure /settings for shooting etc. do not attract service tax as such interior decoration is temporary and has no permanency.

Payment of Service Tax on Receipt Basis

Government has made mandatory to make payment of service tax on accrual basis with effective from April 1, 2011 but interior decorators can continue to pay on receipt basis instead of accrual basis. This benefit is available to Individuals, proprietorships and partnership firms providing these services.

Moreover, this concession is only in respect of services provided in Interior Decorators capacity and is not available to other services provided by them.

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