Apni Law Staff asked 3 years ago
I’m planning to start a small business selling T-shirts in India. I’ll design the shirts myself, but have them printed and manufactured by someone else. Will my business be classified as a service or a manufacturing firm for purposes like CST/VAT, opening a current account, and registering a trademark? I’m aiming to start printing the T-shirts myself later on, and even set up a small factory for production. Given that my initial annual revenue will be under ₹4 lakh, what should I choose for my business classification?
Best Answer
Apni Law Staff answered 3 years ago
Since you’re designing the T-shirts and outsourcing printing initially, your business will be classified as a service provider for tax purposes. However, you can choose to register as a manufacturer if you plan to start printing and manufacturing yourself later, even if your initial revenue is below ₹4 lakh. This will allow you to claim benefits associated with manufacturing and prepare for future growth.
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