SAC Code Against Business Support Services

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Birbal Yadav (Querist)
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27 June 2022 Dear Sir,

We are doing export from plant but all services regarding the export from plant is handled from corporate office. our plant at Haryana and corporate office in Delhi. we are handling all sales, marketing, advertising, tour etc. from delhi. our sale portion in consolidated turnover is 70:30 means 70% sales from Plant and 30% sale from Delhi. Now i want to issue invoice under Business support services in same ratio. I want to know SAC Code for the same? Should I take SAC Code 998599 ?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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11 July 2024 Yes, SAC Code 998599 would be appropriate for invoicing business support services provided by the corporate office to the plant, considering the scenario you've described where services like sales, marketing, advertising, and tours are managed centrally from Delhi for both locations (Haryana plant and Delhi corporate office).

SAC Code 998599 specifically covers "Support services to other businesses n.e.c." (not elsewhere classified). This code is suitable for services that are not explicitly covered under other specified categories and includes services like management, business administration, and other support services provided to businesses.

When issuing invoices under SAC Code 998599, ensure that you clearly mention the breakdown of services provided to the plant (Haryana) and the corporate office (Delhi) based on the agreed-upon percentage (70:30 in your case) to accurately reflect the allocation of services and charges between the two locations.

If there are additional specific services being provided that fall under different SAC codes, those should be invoiced accordingly under their respective codes. However, for general business support services that do not have a more specific SAC code, 998599 is suitable. Always verify with your tax advisor or accountant to ensure compliance with GST regulations and proper documentation of services provided.