• 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 8 years ago in Service Tax

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.

Vijay N. Kale
CA, Hyderabad
248 Answers
13 Consultations

4.9 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA