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Whether business or profession???

Manoj BG (Tax Professional and in Service) (1795 Points)

04 July 2011

Dear All,

Jewellery designing is a profession or business under income tax act, 1961???

Regards,

Manoj

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9 Replies

praveen (Chartered Accountant) (6971 Points)
Replied 04 July 2011

Business is where goods are bought and sold. In your case if the jeweller purchases articles then gives a shape of design then it shall be business only. If the jeweller takes goods only for designing then it becomes a profession

Anjaly.P.A ( Article( CA Final)) (221 Points)
Replied 04 July 2011

Jewellery designing is similar to costume designing. It is a profession.

Kshitij (Consultant) (62 Points)
Replied 04 July 2011

its a profession nd nt a business

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 04 July 2011

yes it is a profession

Paras (Mcom,CA Final) (122 Points)
Replied 04 July 2011

profession !!

Shah Tarun (Student) (800 Points)
Replied 05 July 2011

Originally posted by : praveen
	Business is where goods are bought and sold. In your case if the jeweller purchases articles then gives a shape of design then it shall be business only. If the jeweller takes goods only for designing then it becomes a profession

Business :
“Business” simply means any economic activity carried on for earning profits. Sec. 2(3) has defined the term as “ any trade, commerce, manufacturing activity or any adventure or concern in the nature of trade, commerce and manufacture”.

In this connection it is not necessary that there should be a series of transactions in a business and also it should be carried on permanently. Neither repetition nor continuity of similar transactions is necessary.

Profession :
“Profession” may be defined as a vacation, or a job requiring some thought, skill and special knowledge like that of C.A., Lawyer, Doctor, Engineer, Architect etc. So profession refers to those activities where the livelihood is earned by the persons through their intellectual or manual skill.

Going through the definition,Praveen is right..

Rup Kumar (finance manager) (288 Points)
Replied 05 July 2011

According to sec 2(36) profession include vocation.

Vocation include activities which are performed by a person on account of his natural ability and skills.

Since designing of jewellary is needs some spelised skills, so it is a profession for the designer.

Vikas (CA) (1135 Points)
Replied 05 July 2011

Originally posted by : praveen
	Business is where goods are bought and sold. In your case if the jeweller purchases articles then gives a shape of design then it shall be business only. If the jeweller takes goods only for designing then it becomes a profession

agree...