What is the Business Code for Graphic Designing Partnership Business for ITR 5.

Question BankCategory: Income TaxWhat is the Business Code for Graphic Designing Partnership Business for ITR 5.
Donati 73 asked 8 months ago

Graphic Designing includes all print (from visiting card, brochure to packaging designs), web (website banners, websites etc) & digital designs (all other graphic design related to internet & web). 

4 Answers
Aditya answered 8 months ago

If you are billing for price of full product (V card/ design) then you are manufacturer and You may use code for Publishing, printing and reproduction of recorded media I.e code 4034.
If you are billing only for your service charges , it means you are providing only services and not selling anything , then you may use code for other services I.e code 21008.
 
As per description provided by you about your business , code 4034 is more suitable as you print and publish (online or manual) various designs (it is considered as sale of visiting cards & various other designs, webpages etc). Hence you may use code 4034.
 

Donati 73 answered 8 months ago

Dear Aditya,
Thanks for the prompt reply.
FYI.. I don’t print.. only design (soft copy only).. Even if I have to print for client I get it done from a printer vendor (Jumbo Xerox etc). So mine is a design service provider firm. 
In that case as you said code 21008 (Other Services) should be the right code for my partnership firm. Please correct me if I am wrong. 
Thank you.

Aditya answered 8 months ago

As you are not a manufacturer but service provider, please check under which section your tds is deducted by your clients, Is is 194J or 194C, then refer to below given points-
If you are professional service provider, then you may use code 16019 (Other professional services). Normally Designing requires special knowledge & skill. Your partnership firm may have some employees but designing work may have been performed only by professional i.e. designer having special skill & knowledge about the same. In short, IF your TDS is being deducted u/s 194J by your client, then you  may use code 16019.
But in case you are a business service provider not being a professional i.e. Design work in your firm is being performed by your trained employees and not by professionals, (in short, if your tds is being deducted u/s 194C instead of 194J) then you may use code 21008 (Other services).
Profession can be understood as a job requiring special knowledge, skill like that of CA, Lawyer, Doctor, Engineer, Architect etc. .It was observed by the Supreme Court in CIT vs. Manmohan Das (1966) 59 ITR 699 (SC) that a profession involves occupation requiring purely intellectual or manual skill. So there is difference between business and profession. 
 

Donati 73 answered 8 months ago

Dear Aditya,
as per form 26AS.. TDS was deducted u/s 194C by a client & 194J by another client, I just have 2 clients. 
I am a freelance graphic designer & mine is a partnership where my wife is another partner. So no employees as such, If there is any excess work I get it done from friends and pay them as professional fees. 
I already uploaded the xml using code 21008 (other services) after reading your first answer. 
Thanks.
 

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