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Taxability of Design Services Under Service Tax

designing servicesDesign Services under service tax includes services provided in relation to designing of furniture, consumer products, industrial products, packages, logos, graphics, websites and corporate identity designing and production of three dimensional models.

Designing services has been categorized under two basic headings –

  • Fashion Designing – Services in relation to conceptualizing, outlining, creating the designs and preparing patterns for costumes, apparels, garments, clothing accessories, jewellery or any other articles intended to be worn by human beings are leviable to service tax under this head.
  • Interior Designing – Services in relation to planning, designing or beautification of spaces is leviable to service tax under this head.

In this context we provide you the following details -

1.      Date from which such service is taxable – 1st June, 2007

2.      Service Provider – Any person other than :-

  • An interior decorator
  • A fashion designer providing fashion designing services

 3.      Service Receiver – Any person

 4.      Scope of taxable services – Any service provided or to be provided to any person, by any other person in relation to design services,

But does not include services provided by –

  • an interior decorator
  • a fashion designer in relation to fashion designing

Taxmantra.com assists in all service tax issues, such as levy of services, taxability, filing of returns and others. We have the core expertise in handling Service Tax issues assisting many businesses in India and abroad.

About: 

Alok Patnia founded Taxmantra.com, an expert in tax advisory & compliance. He is a Chartered Accountant having prior exposure with Ernst & Young & KPMG.

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