Need help in sac & itc
This query is : Resolved
25 July 2017
Hello Experts,
I'm running a single proprietorship firm and providing few below mentioned services to my clients all over India. Can you experts please help me in 2 things?
a. Which "Service Accounting Code (SAC)" I should select.
b. Can I claim Input Tax Credit, if I purchase something on behalf of my customers or for myself like domain, web hosting, etc.
My Services are:
1. Website Design & Development
2. Software Design & Development
3. ERP Applications on subscription basis to Real estate / hospitality clients.
4. Mobile Application Design & Development
5. IT & Web Consultancy
6. SEO Service
7. Logo Designing & Branding
8. Online Advertising / Promotion service & consultancy like Google Adwords, Facebook Ads, Email Marketing etc.
9. Re-Selling Domain, Web Hosting, Digital Certificates, etc.
10. Running some own news portal with Google Adsense / local advertisements on it.
Thanks in advance
Sandy A.
I'm running a single proprietorship firm and providing few below mentioned services to my clients all over India. Can you experts please help me in 2 things?
a. Which "Service Accounting Code (SAC)" I should select.
b. Can I claim Input Tax Credit, if I purchase something on behalf of my customers or for myself like domain, web hosting, etc.
My Services are:
1. Website Design & Development
2. Software Design & Development
3. ERP Applications on subscription basis to Real estate / hospitality clients.
4. Mobile Application Design & Development
5. IT & Web Consultancy
6. SEO Service
7. Logo Designing & Branding
8. Online Advertising / Promotion service & consultancy like Google Adwords, Facebook Ads, Email Marketing etc.
9. Re-Selling Domain, Web Hosting, Digital Certificates, etc.
10. Running some own news portal with Google Adsense / local advertisements on it.
Thanks in advance
Sandy A.
25 July 2017
Is there anyone, who can help me in this please?
26 July 2017
Any update experts please?
03 August 2024
### Guidance on Service Accounting Codes (SAC) and Input Tax Credit (ITC)
#### a. **Service Accounting Code (SAC)**
For the services you provide, you need to select the appropriate SAC codes under the Goods and Services Tax (GST) regime. Here’s a breakdown of the SAC codes for your listed services:
1. **Website Design & Development**
- **SAC Code:** 9983
- **Description:** This falls under the category of "Information Technology Services."
2. **Software Design & Development**
- **SAC Code:** 9983
- **Description:** This includes the design, development, and customization of software.
3. **ERP Applications on Subscription Basis**
- **SAC Code:** 9983
- **Description:** This service involves providing ERP solutions on a subscription basis.
4. **Mobile Application Design & Development**
- **SAC Code:** 9983
- **Description:** This is included under "Software Design and Development."
5. **IT & Web Consultancy**
- **SAC Code:** 9983
- **Description:** This pertains to consulting services related to IT and web development.
6. **SEO Service**
- **SAC Code:** 9983
- **Description:** Search Engine Optimization services fall under IT consultancy.
7. **Logo Designing & Branding**
- **SAC Code:** 9983
- **Description:** This is generally classified under IT consulting services as it relates to digital branding.
8. **Online Advertising / Promotion Service**
- **SAC Code:** 9983
- **Description:** This includes services related to online advertising and promotion.
9. **Re-Selling Domain, Web Hosting, Digital Certificates**
- **SAC Code:** 9983
- **Description:** These services are part of IT and web services.
10. **Running Own News Portal with Google Adsense / Local Advertisements**
- **SAC Code:** 9983
- **Description:** Revenue from running a news portal and advertisements typically falls under digital advertising services.
#### b. **Input Tax Credit (ITC)**
1. **Claiming ITC on Purchases:**
- **Domain, Web Hosting, Digital Certificates:**
- **ITC Eligibility:** Yes, you can claim ITC on expenses related to domain registration, web hosting, and digital certificates if these are used to provide taxable services. Since these are input services directly related to your business operations, they qualify for ITC under GST.
- **Purchases on Behalf of Clients:**
- **ITC Eligibility:** If you make purchases on behalf of your clients and the invoices are in your name, you can claim ITC on such expenses. Ensure that the invoices are in your firm's name and GST has been paid on these purchases.
2. **Restrictions on ITC:**
- **General Conditions:** ITC can be claimed only if the goods/services are used for business purposes, and you have the appropriate documentation (invoices, bills).
- **Documentation:** Maintain proper records and documentation of the invoices and payments made for claiming ITC.
3. **ITC Claims for Advertising and Promotion:**
- **Google Adwords, Facebook Ads, Email Marketing:**
- **ITC Eligibility:** You can claim ITC on digital advertising expenses, provided these services are used in the course of your business operations and are directly related to your taxable services.
#### Summary
1. **SAC Codes**:
- Use SAC 9983 for all your listed services as they fall under IT and digital services.
2. **ITC**:
- You can claim ITC on expenses related to domain registration, web hosting, digital certificates, and online advertising, provided these are used for your business and you have the correct documentation.
Ensure that you keep all invoices and records meticulously and consult with a GST professional to ensure compliance with all applicable regulations and to resolve any specific queries related to your business.
#### a. **Service Accounting Code (SAC)**
For the services you provide, you need to select the appropriate SAC codes under the Goods and Services Tax (GST) regime. Here’s a breakdown of the SAC codes for your listed services:
1. **Website Design & Development**
- **SAC Code:** 9983
- **Description:** This falls under the category of "Information Technology Services."
2. **Software Design & Development**
- **SAC Code:** 9983
- **Description:** This includes the design, development, and customization of software.
3. **ERP Applications on Subscription Basis**
- **SAC Code:** 9983
- **Description:** This service involves providing ERP solutions on a subscription basis.
4. **Mobile Application Design & Development**
- **SAC Code:** 9983
- **Description:** This is included under "Software Design and Development."
5. **IT & Web Consultancy**
- **SAC Code:** 9983
- **Description:** This pertains to consulting services related to IT and web development.
6. **SEO Service**
- **SAC Code:** 9983
- **Description:** Search Engine Optimization services fall under IT consultancy.
7. **Logo Designing & Branding**
- **SAC Code:** 9983
- **Description:** This is generally classified under IT consulting services as it relates to digital branding.
8. **Online Advertising / Promotion Service**
- **SAC Code:** 9983
- **Description:** This includes services related to online advertising and promotion.
9. **Re-Selling Domain, Web Hosting, Digital Certificates**
- **SAC Code:** 9983
- **Description:** These services are part of IT and web services.
10. **Running Own News Portal with Google Adsense / Local Advertisements**
- **SAC Code:** 9983
- **Description:** Revenue from running a news portal and advertisements typically falls under digital advertising services.
#### b. **Input Tax Credit (ITC)**
1. **Claiming ITC on Purchases:**
- **Domain, Web Hosting, Digital Certificates:**
- **ITC Eligibility:** Yes, you can claim ITC on expenses related to domain registration, web hosting, and digital certificates if these are used to provide taxable services. Since these are input services directly related to your business operations, they qualify for ITC under GST.
- **Purchases on Behalf of Clients:**
- **ITC Eligibility:** If you make purchases on behalf of your clients and the invoices are in your name, you can claim ITC on such expenses. Ensure that the invoices are in your firm's name and GST has been paid on these purchases.
2. **Restrictions on ITC:**
- **General Conditions:** ITC can be claimed only if the goods/services are used for business purposes, and you have the appropriate documentation (invoices, bills).
- **Documentation:** Maintain proper records and documentation of the invoices and payments made for claiming ITC.
3. **ITC Claims for Advertising and Promotion:**
- **Google Adwords, Facebook Ads, Email Marketing:**
- **ITC Eligibility:** You can claim ITC on digital advertising expenses, provided these services are used in the course of your business operations and are directly related to your taxable services.
#### Summary
1. **SAC Codes**:
- Use SAC 9983 for all your listed services as they fall under IT and digital services.
2. **ITC**:
- You can claim ITC on expenses related to domain registration, web hosting, digital certificates, and online advertising, provided these are used for your business and you have the correct documentation.
Ensure that you keep all invoices and records meticulously and consult with a GST professional to ensure compliance with all applicable regulations and to resolve any specific queries related to your business.
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