Discover SAC Codes like 998211 for criminal law advisory and 998216 for various legal services. Uncover exemptions, nuances, accurate invoicing and adherence.
What is the SAC code in GST?
The GST framework in India, steered by the GST Council, wields considerable influence on diverse sectors, with legal, accounting, and professional services at the forefront. The GST Council, a collaborative body of central and state representatives, dictates tax policies and regulations. Given the integral role these services play in the economy, it’s crucial to fathom the dynamic interplay between GST decisions and the Service Accounting Code (SAC) as it pertains to these sectors.
Legal, accounting, and professional services, spanning advisory, financial reporting, and specialized consulting, are essential components of business operations. The nuanced nature of these services demands a keen understanding of the corresponding SAC Codes and the broader implications of GST. Proper classification under SAC Codes is vital for accurate invoicing and adherence to tax regulations.
In the ensuing discussion, we will delve into the specifics, unravelling the impact of GST and SAC Codes on legal, accounting, and professional services. This exploration aims to shed light on the evolving regulatory landscape and offer insights crucial for service providers and businesses navigating the intricate web of GST.
SAC Code for Legal Services
Legal services are categorized under specific Service Accounting Codes (SAC) to facilitate precise classification for invoicing and taxation purposes. The SAC Codes for legal services are detailed as follows:
- 998211: Legal advisory and representation services concerning criminal law.
- 998212: Legal advisory and representation services concerning other fields of law.
- 998213: Legal documentation and certification services concerning patents, copyrights, and other intellectual property rights.
- 998214: Legal documentation and certification services concerning other documents.
- 998215: Arbitration and conciliation services.
- 998216: Other legal services.
Accounting, Auditing and Bookkeeping Services
For precise classification and compliance with taxation norms, Accounting, Auditing, and Bookkeeping services are categorized under specific Service Accounting Codes (SAC). The SAC Codes for these services are outlined as follows:
- 998221: Financial auditing services
- 998222: Accounting and bookkeeping services
- 998223: Payroll services
- 998224: Other similar services.
It is pertinent to note that the applicable Goods and Services Tax (GST) rate for Accounting, Auditing, and Bookkeeping services is 18%. This rate is uniformly applied across these services, emphasizing a standardised taxation framework. Businesses and service providers in these domains should be cognizant of these SAC Codes and the associated GST rate to ensure accurate invoicing and compliance with the prevailing tax regulations.
SAC Code for Tax Consultancy and Preparation Services
For accurate classification and compliance with tax regulations, Tax Consultancy and Preparation Services are designated specific Service Accounting Codes (SAC). These codes and associated details are as follows:
- 998231: Corporate tax consulting and preparation services.
- 998232: Individual tax preparation and planning services.
Note: The GST new registration rate for tax consultancy and preparation services is 18%, providing a standardized taxation framework for both corporate and individual tax-related services.*
Insolvency and Receivership Services
Insolvency and Receivership Services also have specific Service Accounting Codes (SAC) for precise categorization and taxation. The relevant SAC code and associated details are as follows:
998240: Insolvency and receivership services.
Note: The GST rate for insolvency and receivership services is 18%, ensuring a consistent tax treatment within this domain.*
Other Professional, Technical, and Business Services
A variety of professional, technical, and business services are encompassed under specific Service Accounting Codes (SAC) for clarity in invoicing and taxation. These codes and their descriptions are outlined as follows:
Servicing Accounting Code
- 998391: Specialty design services including interior design, fashion design, industrial design, and other specialty design services
- 998392: Design originals
- 998393: Scientific and technical consulting services
- 998394: Original compilations of facts/information
- 998395: Translation and interpretation services
- 998396: Trademarks and franchises
- 998397: Sponsorship Services & Brand Promotion Services
- 998399: Other professionals, technical, and business services.
Note: An 18% GST rate is applicable for other professionals, technical, and business services, ensuring consistency in the tax treatment across a diverse range of professional and business-oriented offerings.
Conclusion
The SAC Codes play a pivotal role in fostering a transparent and systematic approach to taxation. Service providers and businesses are encouraged to familiarise themselves with these codes to ensure accurate invoicing and compliance with the prevailing GST regulations. The commitment to an 18% GST rate across multiple service categories reflects a dedication to a standardized and equitable taxation framework, ultimately contributing to a more cohesive and efficient business environment.
