• 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 9 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
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