Dhara Pandya (Article) (50 Points)
26 June 2010I HAVE A QUERY REGARDING SERVICE TAX AND VAT.
PLS TELL ME, IN WHICH CATEGORY OF SERVICE TAX 'GRAPHIC DESIGNING' WILL GO.
GRAPHIC DESIGNING LIKE CREATING AND PRINTING BROCHERS, PAMPHLETS, VISITING CARDS, ADVERTISING MATTER AND MATERIAL,GREETING CARDS INVITATION CARDS, ANY PACKING MATERIAL DESIGNS ETC.
AND
WHETHER THIS TYPE OF BUSINESS SHALL HAVE TO TAKE SALES TAX NO. ALSO AND UNDER WHICH CATEGORY OF GOODS IT COME?
PUNEET OBEROI
(CHARTERED ACCOUNTANT)
(100 Points)
Replied 08 May 2011
Dear Mr. Pandaya,
If the contract is to make up visiting cards, pamphlets, greeting cards and then sell them, then these would fall under sales only. The process is of manufacturing in which a raw paper is purchased and processed to sell them as printed material. Service tax element is not involved.
However, if you show / charge separately the designing charges or if you are just giving the services of designing the matter for online publishing etc. then no goods are being sold and in that case service tax is involved.
CAclubindia
