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GST

SAC Code and GST on Legal, Accounting and Professional Services

Discover SAC Codes like 998211 for criminal law advisory and 998216 for various legal services. Uncover exemptions, nuances, accurate invoicing and adherence.

Introduction

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 specialised 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.

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SAC Codes for Legal Services

Legal services are categorised 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:

  • SAC Code 998211: Legal advisory and representation services concerning criminal law.
  • SAC Code 998212: Legal advisory and representation services concerning other fields of law.
  • SAC Code 998213: Legal documentation and certification services concerning patents, copyrights, and other intellectual property rights.
  • SAC Code 998214: Legal documentation and certification services concerning other documents.
  • SAC Code 998215: Arbitration and conciliation services.
  • SAC Code 998216: Other legal services.

Accounting, Auditing and Bookkeeping Services

For precise classification and compliance with taxation norms, Accounting, Auditing, and Bookkeeping services are categorised under specific Service Accounting Codes (SAC). The SAC Codes for these services are outlined as follows:

  • SAC Code 998221: Financial auditing services
  • SAC Code 998222: Accounting and bookkeeping services
  • SAC Code 998223: Payroll services
  • SAC Code 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, emphasising 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.

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:

  • SAC Code 998231: Corporate tax consulting and preparation services.
  • SAC Code 998232: Individual tax preparation and planning services.

Note: The GST rate for tax consultancy and preparation services is 18%, providing a standardised 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:

SAC Code 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:

  • SAC Code 998391: Specialty design services including interior design, fashion design, industrial design, and other specialty design services
  • SAC Code 998392: Design originals
  • SAC Code 998393: Scientific and technical consulting services
  • SAC Code 998394: Original compilations of facts/information
  • SAC Code 998395: Translation and interpretation services
  • SAC Code 998396: Trademarks and franchises
  • SAC Code 998397: Sponsorship Services & Brand Promotion Services
  • SAC Code 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 standardised and equitable taxation framework, ultimately contributing to a more cohesive and efficient business environment.

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