News Flash
  • Online training on "Advance Ruling: An Introduction" for Group 'A' officers of CBIC on 17.08.2022 from 10:30 AM to 01:15 PM -reg< Click here
  • Notification issued to implement e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 10 Cr from 01st October, 2022 Click here
  • Calling Options/Preferences from selected candidates for the post of Stenographer Grade I & Grade II tor allocation of Zones/Formations - regsteno- I options and Steno- II options
  • Letter dt. 29.07.2022 regarding Equal Opportunity Policy Letter and Equal Opportunity Policy
  • Draft Integrated All India Seniority List of Superintendents of CGST & Central Excise, appointed to the grade during the period from 01.01.2007 to 31.12.2011 Click here
  • Draft Integrated All India Seniority List of Customs Appraisers for the period from 01.01.2012 to 31.12.2013 Click here
  • FAQs on GST applicability on ‘pre-packaged and labelled’ goods-reg. Click here
  • Vacancy Circular - Technical Officer Facilitation/Procedures (Grade A3) – in the Research and Policy Unit (Office of the Secretary General) at World Customs Organisation (WCO), Brussels. Click here   |   WCO Letter   |   Annex_1   |   Annex_2   |   Proforma
  • Online training on "Various issues relating to the illegal/unauthorized import of Jammers and other wireless products" on 28.07.2022 -reg. Click here
  • 16th Session of the Virtual Customs Orientation Academy (VCOA) will be held from 12 September 2022 to 16 December 2022-reg. Click here   |   WCO Letter   |   Annex_1   |   Annex_2   |   Proforma
  • Notice calling for suggestions, views, comments etc. from stakeholders on comprehensive changes in FORM GSTR-3B Click here
  • Final Zone Allocation of candidates selected through SSC CGLE 2019- reg Annexure-I   |   Annexure-II   |   Annexure-III   |   Annexure-IV   |   Covering Letter
  • Letter, Schedule, Syllabus, Instructions alongwith an Excel file (Requisition Form) regarding Departmental examination for Inspectors of Central Tax for Confirmation to be held from 02.08.2022 to 05.08.2022 issued by NACIN, ZC, Kanpur Letter and Details
  • Request for uploading instruction titled "Conduct of HC Litigation Monitoring Fortnight from 14.07.2022 to 27.07.2022 Click here
  • Warehousing of solar power generating units or items like solar panel, solar cell etc. for power plants with resulting goods ‘electricity’ - In-applicability of Manufacture and Other Operations in Warehouse (no.2) Regulations, 2019 under section 65 of the Customs Act, 1962 regarding Click here
  • Marks Declared: Marks of Deptt. Exam. for Inspectors of Central Tax held in 14.03.2022 to 16.03.2022 and 19.03.2022 declared. Nodal Officers (Exam) may download marks-sheet alongwith forwarding letter from their e-Mail ID.
  • Recruitment to the Post of Skipper on deputation-RegClick here
  • CBLR -2022 exam Declaration of date-regClick here
  • Online training on 'Budget Management: Estimation, Allocation & Expenditure' for Group 'A' officer of CBIC on 12.07.2022 from 10:30 AM to 01:15 PM -reg. Click here
  • Prospective Training for the month of July , 2022 Click here
  • Notification issued to notify the provisions of clause (c) of section 110 and section 111 of the Finance Act, 2022
  • Notification issued to exempt taxpayers having AATO upto Rs. 2 crores from the requirement of furnishing annual return for FY 2021-22
  • Notification issued to extend due date of furnishing FORM GST CMP-08 for the quarter ending June, 2022 till 31.07.2022
  • Notifications issued to extend the waiver of late fee for delay in filing FORM GSTR-4 for FY 2021-22 and to extend dates of specified compliance
  • Notifications issued to make amendments (First Amendment, 2022) to the CGST Rules, 2 017
  • Simplified regulatory framework for e-commerce exports of jewellery through Courier mode Circular and Notification
  • Notification issued on Notification for Departmental Examination for promotion of Tax Assistants to the Grade of Executive Assistants of Central Taxes & Customs to be held in the month of September, 2022. It also contains the Schedule, Syllabus and Instructions for Examination along with the format (in Annexure II) for requesting for Question Papers. Click here
  • Invitation for scholarship programme- Master Degree in Strategic Management and IPR at Aoyama Gakuin University (AGU) Tokyo Japan (2023-24)-reg. Click here | WCO Invitation   |   Annex-1   |   Annex-2   |   Annex-3   |   Proforma
  • Commendation Certificate on the occasion of 5th GST Day- regClick here
  • O.M. dated 24.06.2022 regarding Constitution of Internal FRACing Unit (IFU) - regarding Click here
  • Corrigendum dated 21.06.2022 regarding RFP No. NACIN/TRNG/232/2022-MCTP-O/o Pr. DG-NACIN-Faridabad dated 01.06.2022 to select a Partner Institute to conduct Phase-III and Phase-IV of Mid-Career Training Programme (MCTP) for IRS (C&IT) Officers Click here
  • Request for publishing notice inviting tender for hiring of office premisesat Bhopal for NACIN ZC, BhopalClick here
  • Independence Day Flag Ceremony at Red Fort on 15th August, 2022Click here
  • Posting of Joint Secretary/Commissioner in the Central Board of Indirect Taxes & Customs- reg. Click here
  • Combined Graduate Level Examination 2019- Final Verification of Options/Preferences– reg. | Annexure-A   |   Annexure-I   |   Annexure-II   |   Annexure-III   |   Annexure-IV   |   Covering Letter
  • Willingness of CBIC Inspectors for posting in Ad.IIIB on loan basis- reg. Click here
  • Procedure relating to sanction, post-audit and review of refund claims Click here
  • Requistion / Requirement of filling up posts on deputation in LPAI (MHA)-RegClick here
  • Notification issued on Notification for Departmental Examination for promotion of Ministerial Officers to the Grade of Inspectors of Central Taxes, Inspectors of Customs (Preventive Officers) & Inspectors of Customs (Examiners) to be held in the month of August, 2022. It also contains the Schedule, Syllabus and Instructions for Examination along with the format (in Annexure II) for requesting for Question Papers. Click here
  • Notice calling for feedback, inputs, comments etc. from all stakeholders on the draft circular and related notifications for facilitating e-commerce exports of Jewellery through courier mode, uploaded on 7th June 2022. Click here
  • Nomination calling for training on "Stress and Yoga: Curse and Cure" for Group A officers of CBIC on 21st June, 2022 at NACIN HQ, Faridabad -reg Click here
  • INVITATION FOR EXPRESSION OF INTEREST FOR SELECTION OF TRAINING PARTNERS/PARTNER INSTITUTE TO CONDUCT PHASE -III & PHASE -IV MID-CAREER TRAINING PROGRAMME (MCTP) FOR IRS (C & IT) OFFICERS Click here
  • CGLE 2019- Verification of Options/Preferences, and final chance for exercising options for left-out candidates | Annexure-A   |   Annexure-I   |   Annexure-II   |   Annexure-III   |   Annexure-IV   |   Document 5
  • Exemption in PET PST for recruitment to the post of Havaldar in CBIC Click here
  • -->
View All
11. Beauty Treatment Services

(A) Date of Introduction:

16.08.2002 (Notification No. 8/2002-S.T.,dated 01.08.2002)

(B) Definition and scope of service:

"Taxable Service" means any service provided or to be provided to any person, by a beauty parlour in relation to beauty treatment;

[Section 65 (105) (zq) of Finance Act, 1994 as amended]

 

 

"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;

Section 65(17) of Finance Act, 1994 as amended]

 

"Beauty Parlour" means any establishment providing beauty treatment services;

[Section 65 (18) of Finance Act, 1994 as amended]

(C) Rate of Tax & Accounting Code:

 

Rate of Tax

Accounting Code

Service Tax

10% of the value of services

00440209

Education Cess

2% of the service tax payable

00440298

Secondary and Higher Education cess

1% of the service tax payable.

00440426

Other -Penalty/interest

As levied or applicable

00440210

( Rate of tax is effective from 24.02.2009.)

( D ) Classification of Taxable Services:

(1) The classification of taxable services shall be determined according to the terms of the sub-clauses (105) of section 65;

(2) When for any reason , a taxable service is prima facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be

effected as follows :-

(a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description;

(b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable;

(c) when a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merits consideration.

( Sec.65A of Finance Act,1994)

(E) Valuation of taxable services for charging Service tax

(1) Service tax chargeable on any taxable service with reference to its value shall,-

(i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him;

(ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration;

(iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner.

(2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.

(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service.

(4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed.

Explanation.-For the purposes of this section,-

(a) "consideration" includes any amount that is payable for the taxable services provided or to be provided;

(b) "money" includes any currency, cheque, promissory note, letter of credit, draft, pay order, travellers cheque, money order, postal remittance and other similar instruments but does not include currency that is held for its numismatic value;

(c) "gross amount charged" includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and 'book adjustment, and any amount credited or debited, as the case may be, to any account, whether called "Suspense account" or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise.

( Sec.67 of Finance Act,1994)

 

 

Inclusion in or Exclusion from value of certain expenditure or cost:

(1) Where any expenditure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall be treated as consideration for the taxable service provided or to be provided and shall be included in the value for the purpose of charging service tax on the said service.

 

[Rule 5(1) of Service Tax (Determination of Value) Rules,2006)]

(2) The expenditure or costs incurred by the service provider as a pure agent of the recipient of service, shall be excluded from the  value of the taxable service if all the following conditions are satisfied, namely:-

(i)        the service provider acts as a pure agent of the recipient of service when he makes payment to third party for the goods or services procured;

(ii)       the recipient of service receives and uses the goods or services so procured by the service provider in his capacity as  pure agent of the recipient of service;

(iii)      the recipient of service is liable to make payment to the third party;

(iv)      the recipient of service authorizes the service provider to make payment on his behalf;

(v)       the recipient of service knows that the goods and services for which payment has been made by the  service provider shall be provided by the  third party;

(vi)      the payment made by the service provider on behalf of the recipient of service has been separately indicated in the invoice issued by the service provider to the recipient of service;

(vii)     the service provider recovers from the recipient of service only such amount as has been paid by him to the third party; and

    (viii)        the goods or services procured by the service provider from the third party as a pure agent of the recipient of service are in addition to the services he provides on his own account.

[Rule 5(2) of Service Tax (Determination of Value) Rules,2006)]

(F) Clarifications issued by the Board:

Scope of Beauty parlours.

(1) 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 parlour" means any establishment providing beauty treatment services. The taxable service, as per section 65 means any service provided, to any person, by a beauty parlour in relation to beauty treatment.

 

(2) This service covers the beauty treatment such as facial, manicure, pedicure and other make ups provided by beauty parlours. 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 parlours. These are more appropriately classifiable as medical services (vide Finance Act, 2007. Cosmetic and Plastic surgery have been made taxable under a new category).

 

(3) ** ** ** **

 

(4) For providing beauty services, parlours 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.

 

(5) Often beauty parlours also sell cosmetics in retail. Quite obviously, no service tax is payable on mere sale of cosmetics or any other material.

 

 

    1.             Vide M.F. (D.R.) F.No. B11/1/2002-TRU, dated 1-8-2002.

    2.             Substituted vide Finance Act, 2008

    3.             Amendments have been made in the definition of 'beauty treatment' (in Budget 2005-06) so as to cover comprehensively all services provided by beauty parlours 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)

 

(G) Exemption & Exclusion:

1. Exemption to Small Scale Service Providers:

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services of aggregate value not exceeding Ten lakh* rupees in any financial year from the whole of the service tax leviable thereon under section 66 of the said Finance Act:

 

Provided that nothing contained in this notification shall apply to,-

(i) taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; or

(ii) such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules,1994.

 

2. The exemption contained in this notification shall apply subject to the following conditions, namely:-

(i) the provider of taxable service has the option not to avail the exemption contained in this notification and pay service tax on the taxable services provided by him and such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year;

(ii) the provider of taxable service shall not avail the CENVAT credit of service tax paid on any input services, under rule 3 or rule 13 of the CENVAT Credit Rules, 2004 (herein after referred to as the said rules), used for providing the said taxable service, for which exemption from payment of service tax under this notification is availed of;

(iii) the provider of taxable service shall not avail the CENVAT credit under rule 3 of the said rules, on capital goods received in the premises of provider of such taxable service during the period in which the service provider avails exemption from payment of service tax under this notification;

(iv) the provider of taxable service shall avail the CENVAT credit only on such inputs or input services received, on or after the date on which the service provider starts paying service tax, and used for the provision of taxable services for which service tax is payable;

(v) the provider of taxable service who starts availing exemption under this notification shall be required to pay an amount equivalent to the CENVAT credit taken by him, if any, in respect of such inputs lying in stock or in process on the date on which the provider of taxable service starts availing exemption under this notification;

(vi) the balance of CENVAT credit lying unutilised in the account of the taxable service provider after deducting the amount referred to in sub-paragraph (v), if any, shall not be utilised in terms of provision under sub-rule (4) of rule 3 of the said rules and shall lapse on the day such service provider starts availing the exemption under this notification;

(vii) where a taxable service provider provides one or more taxable services from one or more premises, the exemption under this notification shall apply to the aggregate value of all such taxable services and from all such premises and not separately for each premises or each services; and

(viii) the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed rupees *ten lakhs in the preceding financial year.

 

3. For the purposes of determining aggregate value not exceeding ten*lakh rupees, to avail exemption under this notification, in relation to taxable service provided by a goods transport agency, the payment received towards the gross amount charged by such goods transport agency under section 67 for which the person liable for paying service tax is as specified under subsection (2) of section 68 of the said Finance Act read with Service Tax Rules, 1994, shall not be taken into account.

 

Explanation.- For the purposes of this notification,-

 

(A) "brand name" or "trade name" means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person;

(B) "aggregate value not exceeding *ten lakh rupees means the sum total of first consecutive payments received during a financial year towards the gross amount, as prescribed under section 67 of the said Finance Act, charged by the service provider towards taxable services till the aggregate amount of such payments is equal to ten lakh rupees but does not include payments received towards such gross amount which are exempt from whole of service tax leviable thereon under section 66 of the said Finance Act under any other notification.

 

4. This notification shall come into force on the 1st day of April, 2005.

 [Notification No. 6/2005-ST, dated 1-3-2005. *Amended by Notfn.No. 8/2008-ST dated 01.03.2008]

2. Services to UN Agencies

Services provided to United Nations or an International Organizations are exempt.

[Notification No. 16/2002-ST, dated 2-8-2002]

3. Export of service:

Any service which is taxable under clause 105 of Section 65 may be exported without payment of service tax.

( Rule 4 of Export of Services Rules,2005)

4. Exemption to services provided to a developer of SEZ or a unit of SEZ:

Exempts the taxable services specified in clause (105) of section 65 of the said Finance Act, which are provided in relation to the authorized operations in a Special Economic Zone, and received by a developer or units of a Special Economic Zone, whether or not the said taxable services are provided inside the Special Economic Zone,  from  the whole of the service tax leviable thereon under section 66 of the said Finance Act subject to certain conditions. ( Refer notification for details)

{ Notification No. 09/2009ST dated 03.03.2009 (Prior to 03.03.2009 Notfn.No4/2004-ST dated 31.03.2004)}

5. Exemption to value of goods & material sold by service provider:

In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts so much of the value of all the taxable services, as is equal to the value of goods and materials sold by the service provider to the recipient of service, from the service tax leviable thereon under section (66) of the said Act, subject to condition that there is documentary proof specifically indicating the value of the said goods and materials.

(Notification No. 12/2003-ST dated 20.06.2003 effective from 01.07.2003)

6. Exemption to taxable services provided by TBI and STEP:

All taxable services, provided by a Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Govt. of India from the whole of the service tax leviable thereon subject tio certain conditions and procedures. ( Refer notification for details)

(Notification No.09/2007 ST dated 01.03.2007)

7. Exemption to taxable services provided by entrepreneurs located within the premises of TBI or STEP:

All taxable services, provided by an entrepreneur located within the premises of a Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Govt. of India from the whole of the service tax leviable thereon subject to certain conditions and procedures. ( Refer notification for details)

(Notification No.10/2007 ST dated 01.03.2007)

8. Exemption to services provided to Foreign Diplomatic Missions or Consular Post in India:

All services provided by any person, for the official use of a Foreign Diplomatic Mission or Consular Post in India are exempted from service tax subject to certain conditions and procedures. (Refer notification for details)

(Notification No. 33/2007-ST dated 23.05.2007)

9. Exemption to services provided for personal use of a family member of Diplomatic Agent or Career Consular Officers posted in Foreign Diplomatic Mission/Consular Post in India:

All services provided by any person, for personal use of family member of Diplomatic Agents or Career Consular officers posted in a Foreign Diplomatic Mission or Consular Post in India are exempted from service tax subject to certain conditions and procedures. (Refer notification for details)

(Notification No. 34/2007-ST dated 23.05.2007)

**********************