Designed Tshirt selling firm is manufacturing or service based
I'm planning to start a T-shirt brand. I will be performing the fashion design and the sales part, while a third party would be doing the manufacturing and printing of the t-shirts.
I wanted to register as a sole proprietorship firm. I'm confused if my industry would come under manufacturing industry or a service based industry?
Kindly help me out.
Asked 3 years ago in Service Tax from Chennai, Tamil Nadu
If you are purchasing material and supplying to garment manufacturer and buying the t shirts made, then designing becomes part of manufacturing and no service tax element. But if you are providing design as a designer to others then it may take an element of service. Therefore it depends on nature of contract between you and other party.