FASHION DESIGNER

Date of introduction: 16.08.2002 vide Notification No.8/2002 dated 1.8.2002

Definition:

“Fashion Designing” includes any activity relating 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 and any other service incidental thereto;
(Section 65(37) of Finance Act, 1994, as amended)

“Fashion Designer” means any person engaged inn providing service in relation to fashion designing; (Section 65(38) of Finance Act, 1994, as amended)

Taxable even and scope of service:

“Taxable service” means any service provided to any person, by a fashion designer in relation to fashion designing; and the term “service provider” shall be construed accordingly.
(Sub-clause (zv) of clause-90 Section 65 of Finance Act, 1994, as amended)

Fashion designer conceptualize and create designs/patterns applying his sense of aesthetic, keen sense of colour, visual imagination, knowledge of market trend and as per requirement of the client. Accordingly fashion designer may be in volved in designing of any goods which are intended to be worn by human being and where aesthetic/looks/fashion is a criterion for wearing it. Fashion designers work include selection of material (for example type of cloth, its colour, design, quantity etc), preparing design as per the trend or as per his visual imagination, preparation of pattern incorporating the requirement of the client. Fashion designer also keeps in mind the occasion, season and time etc. when his designed article is intended to be worn.
(Ministry’s F.No.B11/1/2002 TRU dt.01.08.2002)

Value of taxable service :

The value of taxable service shall be the gross amount charged by the service provider of such service rendered by him. If the fashion designer provides stitching service alongwith designing of cloth as per the clients requirement, the fashion designer is liable to pay Service Tax only on designing service rendered by him provided designing charges are shown separately in the bill. However if designing charges and stitching charges are shown in consolidated manner, service tax will be leviable on entire amount.

Exemption and Exclusion :

A tailor involved only in stitching of cloth is not involved in designing activity and is not liable to pay Service Tax. Garment making is not taxable. Similarly making of jewellery and selling it does not attract tax. However, service of a designer to design jewellery is taxable. If a fashion designers designs article for himself and makes these articles say garments and sells them, in such a case designing service is provided to oneself by the designer and therefore not liable to service tax.

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