Trusted by 10,000+ Businesses

IT and Software Company Accounting and Compliance Services in India

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: Verify Credentials →

GST Export Compliance: Domestic IT services at 18% (SAC 9983); export zero-rated under LUT via Rule 96A - FIRC documentation and Table 6A reporting

Section 194J TDS: 2% on technical services, 10% on professional consulting above Rs 50,000/year - post October 2024 CBDT clarification compliance

Startup Tax Planning: Section 80-IAC tax holiday, ESOP taxation, Angel Tax exemption under Section 56(2)(viib), DPIIT recognition support

400+ IT Clients: Starting from INR 2,999/month with dedicated CA assigned - software companies, SaaS, exporters, and tech startups across India

Trusted by 400+ IT and software companies across India for GST, TDS, and compliance

Call +91 945 945 6700 Email Us WhatsApp Us
15+ YearsIndustry Experience
CA & CSCertified Experts
4.9
Based on 500+ reviews

Get Free Consultation

Talk to a CA/CS expert today

🇮🇳 +91

Our team will get back to you shortly. No spam.

100% Secure No Spam Quick Response

Real Stories from Real People

Hear how teams across industries use Patron to save time, cut costs, & stay in control.

Fetching latest Google reviews…
“
Patron's LUT filing and export compliance has been flawless. We export to 12 countries and every invoice is zero-rated correctly. Their quarterly RCM health check caught Rs 3 lakh in missed ITC on our AWS billing.
AK
Arun K.
CTO, SaaS Company, Pune
★★★★★
2 months ago
“
We were deducting TDS under 194C instead of 194J for our IT vendors. Patron identified the issue, corrected the classification, and filed revised returns before the assessment notice. Saved us significant interest.
PM
Priya M.
CFO, IT Services, Mumbai
★★★★★
3 months ago
“
As a DPIIT-registered startup, Patron helped us claim Section 80-IAC in the optimal assessment years and structured our Series A documents to protect the Angel Tax exemption. Exceptional startup CA expertise.
RJ
Rahul J.
Founder, Tech Startup, Bengaluru
★★★★★
1 month ago
“
Transfer pricing was a black box for us until Patron took over. They prepared the Section 92D documentation and filed Form 3CEB on time. Our MNC parent audit went smoothly with zero adjustments.
NK
Neha K.
Finance Head, GCC, Delhi NCR
★★★★★
4 months ago

Join 10,000+ Satisfied Businesses

Get expert CA-managed accounting for your IT or software company.

Talk to an Expert
10,000+Businesses ServedGST compliance and litigation support across India.
15+Years ExperienceDeep expertise in IP registration, GST & business compliance.
50,000+Documents FiledReturns, appeals, and filings handled accurately.
4.9★Client RatingTrusted by entrepreneurs, startups, and growing businesses.
ISO CertifiedProfessional standards and documented processes.
SSL SecureYour financial and business data is fully protected.

IT and Software Accounting - Specialist CA Services for Tech Companies in India

📌 TL;DR - IT Software Accounting Services at a Glance

IT and software companies in India deal with 18% GST on domestic services (SAC 9983), zero-rated exports via LUT under Rule 96A, 2% or 10% TDS under Section 194J, startup tax holidays under Section 80-IAC, transfer pricing for MNCs, and Ind AS 115 revenue recognition. Patron Accounting delivers end-to-end CA services for IT companies from INR 2,999 per month with 400+ technology clients served.

IT and software accounting requires specialist knowledge beyond standard compliance. A domestic SaaS company must navigate ITC eligibility, correct SAC code classification, and place-of-supply rules. An IT exporter must ensure all five conditions for export of services under Section 2(6) of the IGST Act are satisfied to validly file LUT and export at zero GST. Startups must document ESOP grants correctly and track Section 80-IAC eligibility windows.

Patron Accounting LLP provides ICAI-registered CAs with deep tech-sector specialisation serving 400+ IT and software clients across India. From monthly GST compliance and LUT filing to transfer pricing documentation and Section 80-IAC applications, we manage the complete compliance lifecycle for software product companies, SaaS startups, IT services exporters, and global captive centres.

Content is reviewed quarterly for accuracy.

What is IT and Software Accounting?

IT and software accounting is specialised financial management for technology companies covering GST compliance (18% domestic or zero-rated exports), TDS on vendor payments under Section 194J, startup tax planning under Section 80-IAC, transfer pricing documentation for MNCs, ESOP accounting, and statutory audits under Companies Act 2013.

Domestic IT services attract 18% GST under SAC Code 9983, while exports of software services can be zero-rated through a Letter of Undertaking (LUT) under Rule 96A, CGST Rules 2017. The five conditions for export of services under Section 2(6) of the IGST Act 2017 must all be met: supplier in India, recipient outside India, place of supply outside India, payment in convertible foreign exchange, and not between same entity's branches.

Additionally, IT companies importing foreign SaaS tools (AWS, Google Cloud, Azure) must self-assess 18% IGST under the Reverse Charge Mechanism per Notification 10/2017-IT and can claim ITC on the self-assessed payment. Revenue recognition for IT service contracts and SaaS subscriptions must follow Ind AS 115 five-step model.

Key Terms for IT Software Accounting:

SAC Code 9983: Service Accounting Code for IT and software services under GST covering development, consulting, SaaS, cloud hosting, and technical support at 18%

LUT (Letter of Undertaking): Form GST RFD-11 under Rule 96A enabling zero-rated export without upfront IGST payment - annual filing before first export

Section 194J TDS: 2% on technical services (IT support, AMC, call centre) and 10% on professional consulting above Rs 50,000/year

Section 80-IAC: 100% profit deduction for DPIIT-registered startups for 3 consecutive years out of first 10 years from incorporation

Transfer Pricing (Sections 92-92F): Documentation for international transactions with associated enterprises; Form 3CEB by CA by 31 October

IT IT Software Accounting
IT Sector GST + LUT + TDS Compliance

Who Needs IT and Software Accounting Services?

  • Software Development Companies: 18% GST on domestic invoices; LUT and zero-rated export compliance; GSTR-1 Table 6A; Form 3CEB if transfer pricing applicable
  • IT Consulting and Managed Services: Section 194J TDS at 10% on consulting fees; place-of-supply classification; ITC on office expenses and cloud tools
  • Tech Startups (DPIIT-Registered): Section 80-IAC tax holiday; Angel Tax exemption under Section 56(2)(viib); ESOP grant and exercise tax advisory
  • Freelance Developers and IT Contractors: GST registration mandatory for exporters regardless of turnover; LUT for export clients; Section 44ADA presumptive taxation
  • IT Service Exporters (GCCs, KPOs, BPOs): FIRC/BRC documentation; SEZ zero-rated compliance; transfer pricing for captive units; large-team payroll
  • SaaS Companies Serving Indian Businesses: B2B IGST billing; e-invoicing if turnover above Rs 5 crore; Ind AS 115 subscription revenue recognition
  • E-commerce Tech Platforms: GST TCS under Section 52 at 1%; GSTR-8 monthly returns; seller reconciliation compliance

IT and Software Accounting Services by Patron Accounting

ServiceWhat We Do
GST Compliance and Export AdvisoryRegistration, SAC 9983 classification, LUT filing (Form GST RFD-11), GSTR-1 with Table 6A, GSTR-3B, GSTR-9, e-invoicing, RCM on imported software, ITC reconciliation
TDS Compliance (Section 194J)2% technical / 10% professional TDS classification per October 2024 CBDT clarification, Form 26Q quarterly, Form 16A, TAN registration, Lower TDS Certificate advisory
Startup Tax PlanningSection 80-IAC application, Angel Tax exemption documentation, ESOP perquisite tax advisory, R&D deduction under Section 35(2AB), advance tax planning, ITR-6
Transfer PricingSection 92D documentation, arm's length benchmarking (CUP/TNMM), Form 3CEB by 31 October, transfer pricing audit under Section 92E
Payroll and ESOP ManagementMonthly payroll with TDS, PF, ESI; ESOP grant register; perquisite calculation at exercise; Form 12BA and Form 16 with ESOP disclosure
Bookkeeping, MIS, and AuditTally/Zoho Books; Ind AS 115 revenue recognition; intangible asset capitalisation per Ind AS 38; project-wise P&L; statutory audit Section 143; tax audit Form 3CD
Our Process

How IT Accounting Services Work - 7-Step Process

From business model assessment to annual audit, every step managed by CAs with IT sector specialisation.

Step 1

Business Model Assessment

We map all revenue streams: domestic B2B services (18% GST), exports to foreign clients (zero-rated if Section 2(6) IGST Act conditions met), supplies to SEZ units, and import of foreign software tools (RCM at 18%). Correct SAC codes assigned under 9983.

Revenue streams mapped SAC codes assigned
Model Assessed01
Step 2

GST Registration and LUT Setup

GST registration (mandatory for all IT exporters regardless of turnover). Annual LUT filed via Form GST RFD-11 under Rule 96A. GSTR-1 reporting configured with Table 6A export entries and FIRC/BRC documentation procedures.

GST registered LUT filed FIRC tracking set
LUTGST
Export Ready02
Step 3

TDS Classification and Vendor Setup

Analyse all vendor categories: IT contractors (Section 194C at 1%/2%), technical services (Section 194J at 2%), consulting fees (Section 194J at 10%). Post October 2024 CBDT clarification compliance. PAN verification and monthly TDS challan deposits.

194J vs 194C classified Vendor matrix built
TDS Ready03
Step 4

Startup Tax Holiday Documentation

For DPIIT-registered startups: Section 80-IAC eligibility assessment, IMB application preparation, 3-year tax deduction claim, and Angel Tax exemption documentation per CBDT Notification No. 29/2023 for valuation basis.

80-IAC claimed Angel Tax protected
80-IAC
Startup Compliant04
Step 5

Transfer Pricing Compliance

For IT companies with international transactions: Section 92D documentation, arm's length price analysis (CUP or TNMM), and Form 3CEB signed by CA filed by 31 October.

TP documentation Form 3CEB filed
TP Compliant05
Step 6

Monthly Compliance Execution

GSTR-1 by 11th, GSTR-3B by 20th, TDS challan deposits by 7th, payroll with PF/ESI, e-invoicing for eligible transactions, and monthly bookkeeping with Ind AS 115 revenue recognition for IT service contracts.

GSTR filed monthly TDS deposited on time Ind AS 115 applied
COMPLIANCE
Monthly Done06
Step 7

Annual Audit and Year-End Close

Statutory audit under Section 143 Companies Act; tax audit Form 3CD under Section 44AB; transfer pricing audit Form 3CEB; ITR-6 by 31 October; GSTR-9/9C by 31 December; ROC annual return.

Audit complete ITR-6 filed
COMPLIANT
Year Closed07

Documents Required for IT Software Accounting

Provide the following for your IT accounting engagement:

  • GST Registration Certificate - Or PAN and entity documents for new registration
  • Service List with SAC Codes - Domestic vs export classification for all services
  • Export Invoices - Foreign client name, address, currency, amount for each export
  • FIRC/BRC Certificates - Foreign Inward Remittance Certificate for each export payment
  • Overseas Client Contracts - To confirm Section 2(6) IGST Act export conditions
  • Foreign Software Import Invoices - AWS, Google Cloud, Azure, etc. for RCM assessment
  • Vendor List with PAN - Nature of service and estimated annual payment for 194J/194C
  • DPIIT Recognition Certificate - For Section 80-IAC claims (startups only)
  • ESOP Scheme Document - Grant details and exercise notices for perquisite tax
  • International Transaction Details - Associated enterprise list for transfer pricing
  • Revenue Contracts - IT service and SaaS subscription contracts for Ind AS 115

Common Challenges for IT Companies and How We Solve Them

ChallengeImpactHow Patron Accounting Solves It
Export Conditions Not Met18% GST on foreign billing instead of zero-rated; unexpected liabilityFull export condition audit per Section 2(6) IGST Act; LUT filed only for qualifying transactions
Wrong TDS Section (194J vs 194C)Interest under Section 201(1A) and TDS reassessment exposureVendor classification matrix per October 2024 CBDT clarification; correct section per payment type
Missed RCM on Foreign SoftwareAccumulated IGST exposure on AWS, Google Cloud, Azure subscriptionsQuarterly RCM health checks; correct RCM reporting and ITC utilisation in GSTR-3B
Section 80-IAC Eligibility LapseForfeited tax holiday; Angel Tax exposure on fundraisingProactive eligibility tracking; IMB application filing; investor documentation advisory
Undocumented Transfer PricingSection 271AA penalty at 2% of transaction valueSection 92D documentation; Form 3CEB by 31 October; arm's length benchmarking
Non-Compliant Revenue RecognitionCash basis reporting; Ind AS non-compliance for SaaS contractsInd AS 115 five-step model; deferred revenue accounting for SaaS subscriptions

IT Software Accounting Service Fees 2026

Fee ComponentAmount
Basic GST Compliance (GSTR-1 + GSTR-3B + LUT)Rs. 4,000/month
TDS Compliance (Form 26Q + Form 16A)Rs. 3,000/month
Full GST + TDS PackageRs. 7,000/month
Startup Tax and Section 80-IACRs. 5,000 onwards
Transfer Pricing Documentation + Form 3CEBRs. 25,000 onwards
Bookkeeping and MIS (Ind AS 115)Rs. 6,000/month
Comprehensive IT Package (All-in-One)Rs. 20,000/month
Patron Accounting Professional FeesStarting from INR 2,999 (Exl GST and Govt. Charges)

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free IT Software Accounting consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

IT Company Compliance Deadlines 2026

StageEstimated Timeline
Annual LUT Filing (Form GST RFD-11)Before first export of financial year (April recommended)
Monthly GSTR-1 with Table 6A Exports11th of following month
Monthly GSTR-3B and GST Payment20th of following month
TDS Deposit under Section 194J7th of month following deduction
Quarterly TDS Returns (Form 26Q/24Q)31st of month following quarter end
Tax Audit Form 3CD (Section 44AB)30 September
Transfer Pricing Form 3CEB / ITR-631 October
Annual GSTR-9 / GSTR-9C31 December

Note: Exports without valid LUT are treated as taxable at 18% GST with interest. Late TDS deposit attracts interest under Section 201(1A). Missing Form 3CEB deadline attracts penalty of 2% of transaction value under Section 271AA. Patron Accounting sends proactive reminders for all deadlines.

Key Benefits

Why Professional Accounting Matters for IT Companies

Zero-Rated Export Protected

Full Section 2(6) IGST Act condition audit and LUT management preventing 18% GST on foreign billing

TDS Reclassification Avoided

Correct 194J vs 194C classification per October 2024 CBDT clarification preventing interest and disallowance

Startup Tax Holiday Claimed

Section 80-IAC time-limited to 3 years within first 10 - missing the window forfeits significant tax savings

Transfer Pricing Compliant

Section 92D documentation and Form 3CEB by deadline avoiding 271AA penalty at 2% of transaction value

RCM ITC Optimised

Correct ITC claim on IGST paid under RCM for foreign software tools reduces effective subscription cost by up to 18%

Investor-Ready Books

Audited Ind AS financials and clean compliance histories required by banks, VCs, and PE investors from Day 1

400+ IT Companies Trust Patron Accounting

Patron Accounting serves 400+ IT and software clients across India with 20+ ICAI-registered CAs specialising in the tech sector. We file 5,000+ GST returns and 100+ Form 3CEB transfer pricing reports annually.

Offices in Mumbai, Pune, Delhi NCR, and Bengaluru with an average client rating of 4.8/5. Specialist teams for startups, SaaS exporters, and Global Capability Centres.

DIY vs Professional IT Accounting

AspectDIY / In-HousePatron Accounting
GST Export ComplianceRisk of missing Section 2(6) conditionsFull export condition audit + LUT + FIRC tracking
TDS Classification194J vs 194C confusion post Oct 2024Correct section per CBDT clarification
RCM on ImportsOften missed - exposure accumulatesQuarterly RCM health check + ITC claim
Startup Tax Planning80-IAC window missed; Angel Tax exposureIMB application + Angel Tax protection
Transfer PricingUndocumented - 271AA penalty riskSection 92D documentation + Form 3CEB by deadline
Revenue RecognitionCash basis; non-compliantInd AS 115 SaaS subscription recognition
CostRework + penalties + TP audit costsTransparent retainer from INR 2,999/month

Related Services for IT Companies

Complementary services for IT and software entities:

  • Company Registration - Private Limited registration for software startups and IT product companies
  • GST Registration - For IT companies starting exports or reaching domestic turnover threshold
  • Income Tax Return Filing - ITR-6 for IT companies; ITR-4 for freelancers under Section 44ADA
  • TDS Return Filing - Quarterly 26Q and 24Q for IT companies with large vendor and employee payments
  • Payroll Services - Monthly payroll, ESOP perquisite management, Form 16 for IT company employees
  • Startup Registration - DPIIT recognition, Section 80-IAC eligibility, and Angel Tax advisory

Legal and Regulatory Framework for IT Accounting

Key statutory provisions for IT and software company compliance:

  • SAC Code 9983, CGST Act 2017: IT services at 18% GST (CGST 9% + SGST 9% intrastate or IGST 18% interstate). CBIC Portal
  • Section 2(6), IGST Act 2017: Five conditions for export of services zero-rated classification - supplier in India, recipient outside India, place of supply outside India, payment in convertible foreign exchange, not between same entity branches
  • Rule 96A, CGST Rules 2017: LUT filing under Form GST RFD-11 enabling zero-rated export without upfront IGST. GST Portal
  • Notification 10/2017-IT: RCM on import of services including foreign software and digital tools at 18% IGST by recipient
  • Section 194J, Income Tax Act 1961: TDS at 2% on technical services, 10% on professional consulting above Rs 50,000/year (threshold revised FY 2025-26). Income Tax Portal
  • Section 80-IAC, Income Tax Act 1961: 100% deduction for DPIIT startups for 3 years out of first 10; turnover cap Rs 100 crore. Startup India
  • Sections 92-92F, Income Tax Act 1961: Transfer pricing documentation for international transactions with associated enterprises; Form 3CEB by 31 October; penalty 2% under Section 271AA
  • Ind AS 115: Revenue recognition for IT service contracts and SaaS subscriptions using the five-step model

Frequently Asked Questions - IT Software Accounting India

Answers to common questions about GST, LUT, TDS, Section 80-IAC, transfer pricing, and compliance for IT companies.

Quick Answers

Q: What is IT software accounting? Specialised financial management for tech companies covering 18% GST, zero-rated export via LUT, TDS under Section 194J, startup tax holidays, transfer pricing, and Ind AS 115 revenue recognition.

Q: IT company ka GST kitna lagta hai? Domestic IT services par 18% GST lagta hai (SAC 9983). Export of services LUT se zero-rated hota hai agar Section 2(6) IGST Act conditions puri hon.

Q: Is GST mandatory for IT freelancers? Yes, mandatory for exporters regardless of turnover. For domestic-only, above Rs 20 lakh aggregate turnover. Section 44ADA presumptive taxation available up to Rs 75 lakh.

Q: What is RCM for IT companies? When importing foreign SaaS tools, self-assess 18% IGST under Reverse Charge per Notification 10/2017-IT. ITC can be claimed in same GSTR-3B making it cash-neutral.

IT Compliance Deadlines You Cannot Afford to Miss

A single failed export condition converts zero-rated billing to 18% GST with interest. Incorrect 194J vs 194C classification attracts TDS reassessment. Missing Form 3CEB deadline attracts 2% penalty on all transfer pricing transactions. Unfiled LUT means all exports for the year are treated as taxable at 18%.

Call +91 945 945 6700 or WhatsApp us for a free IT accounting consultation. We will map your compliance requirements and have your systems in order within 10 working days.

Start Your IT Accounting with Patron Accounting

IT and software accounting in India sits at the intersection of complex GST rules, nuanced TDS compliance, startup tax incentives, transfer pricing obligations, and Ind AS revenue recognition. The cost of errors ranges from forfeited zero-rated export status to transfer pricing penalties.

Patron Accounting provides ICAI-certified CAs with deep IT sector experience. From GST LUT filing to Section 80-IAC applications and transfer pricing documentation, we manage your complete compliance lifecycle starting from INR 2,999 per month.

Book a Free Consultation - No Obligation.

IT Software Accounting Services Across India

CA-managed IT and software accounting in major Indian cities.

Pune
Maharashtra
Mumbai
Maharashtra
Delhi
NCR
Gurugram
Haryana
Related Services
End-to-end support for IT Software Accounting
Accounting Services
India
GST Registration
India
Income Tax Return
India
TDS Return Filing
India
Payroll Services
India
Startup Registration
India

Content Created: 12 March 2026  |  Last Updated:  |  Next Review: 12 March 2027  |  Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed annually or when CBIC notifications, Finance Act amendments, or TDS rate changes affect IT and software companies. All regulatory citations verified against CBIC, Income Tax Act, and IGST Act provisions.

Back to Top