What GST applies to software services in Mumbai?

Domestic IT services: 18% GST under SAC 9983. Export: zero-rated via LUT (Form RFD-11). Export invoices in GSTR-1 Table 6A as 'without payment of tax'. ITC on domestic inputs (rent, cloud, office) claimable even for zero-rated. Patron handles LUT and Table 6A for Mumbai IT exporters.

How does LUT work for Mumbai software exporters?

Filed annually in Form RFD-11, valid one FY (April-March). Invoice foreign clients at zero GST without IGST. Mention LUT ARN on invoices. FIRC/e-FIRA collected for every export receipt. Patron files each April and tracks FIRC realisation.

How much does IT company accounting cost in Mumbai?

Early-stage/freelancer: Rs 5,000-10,000/month. Growth-stage: Rs 10,000-25,000. IT exporter with LUT: Rs 15,000-40,000. GCC with transfer pricing: Rs 50,000-2,00,000. SaaS with Ind AS 115 + investor MIS: Rs 20,000-50,000.

Is Section 80-IAC tax holiday still available for Mumbai startups?

Yes. DPIIT-recognised startups incorporated after April 2016. 100% profit deduction for any 3 consecutive years out of first 10. Pvt Ltd or LLP. Turnover ≤ Rs 100 Cr. Patron assists with DPIIT recognition and S.80-IAC application including inter-ministerial board certification.

What TDS applies when hiring software freelancers?

S.194J: 2% on technical services, 10% on professional consulting above Rs 50,000/year per payee. Post-Oct 2024 CBDT: software development generally 2% (technical), strategic consulting 10% (professional). 50+ freelancers = quarterly 26Q filing. Form 16A per contractor.

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IT and Software Accounting Services in Mumbai: CA-Led Financial Management for Tech Companies

Q: Can IT companies get accounting done online from Mumbai?

Yes. GST filing, LUT management, TDS returns, payroll with ESOP, investor MIS all handled digitally. Walk-in at Marine Lines for startup founders, CTOs, CFOs from Powai, Andheri, BKC, Lower Parel. Quick Answers IT company ka GST kitna? Domestic: 18%. Export: zero-rated (LUT file karo, IGST nahi lagta). LUT har April renew. Startup ko tax holiday milta hai? Haan - S.80-IAC, DPIIT-recognised, 3 saal 100% profit deduction. Freelancer ko TDS kitna? S.194J - technical 2%, professional consulting 10% (Rs 50,000+ per year).

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: 20 March 2026 Verify Credentials →

Documents: GST registration, DPIIT startup recognition, incorporation certificate, ESOP plan, client contracts, FIRC/e-FIRA

Fees: Starting from Rs 5,000/month for early-stage IT startups

Eligibility: Software product companies, IT services firms, SaaS startups, GCCs, freelance developers, tech consultancies

Timeline: Onboarding 3-5 days; monthly books by 10th; LUT renewal each April

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Real Stories from Real People

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

“

Patron files our LUT each April, reports exports in Table 6A, and tracks FIRC for every invoice. We had a GST audit last year - the officer verified 200+ export invoices and found zero compliance gaps. The S.80-IAC tax holiday application was also handled end-to-end including DPIIT recognition.

Founder

SaaS Startup, Powai

★★★★★

1 month ago

“

Our GCC in BKC has Rs 150 crore in intercompany billing with our US parent. Patron prepared the transfer pricing study, filed Form 3CEB on time, and handles ESOP perquisite for 400+ employees in monthly payroll. The TP documentation was accepted by the assessing officer without any adjustment. Previously had Rs 8 crore adjustment risk.

CFO

GCC, BKC

★★★★★

2 months ago

“

We engage 65 freelance developers and testers. Patron correctly classifies each as technical (2% TDS) or professional (10%), files quarterly 26Q, and issues Form 16A per contractor. The CBDT clarification was applied from October 2024 itself. Zero TDS defaults, zero S.40(a)(ia) disallowance risk. The MRR and burn rate dashboard is delivered by the 10th every month.

CTO

IT Company, Andheri

★★★★★

3 months ago

“

As a freelance developer in Lower Parel earning Rs 60 lakh, Patron set me up on Section 44ADA presumptive taxation - half the compliance of regular books. They also filed my LUT since I export to a UK client, tracked the FIRC, and filed GST with Table 6A. Simple, clean, and Rs 7,000/month. Worth every rupee.

Developer

Freelancer, Lower Parel

★★★★★

2 months ago

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CA-led IT accounting with LUT export, S.194J TDS, ESOP, transfer pricing, and investor MIS for Mumbai tech companies.

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Overview What Is It Who Needs It Services Process Documents Challenges Fees Timeline Why Patron By Entity Type FAQs

IT & Software Accounting in Mumbai - Overview

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

IT accounting covers GST 18% domestic (SAC 9983) or zero-rated exports via LUT (Rule 96A), TDS S.194J on technical payments, startup S.80-IAC tax holiday, ESOP accounting, transfer pricing S.92E for GCCs, Ind AS 115 for SaaS revenue, and statutory audit. 400+ IT clients across India.

Parameter	Detail
Governing Acts	GST (SAC 9983); IGST (S.16 zero-rated); IT Act (S.80-IAC, 194J, 92E); Companies Act (S.128)
Applicable To	Software product, IT services, SaaS, GCCs, freelancers, tech consultancies
Timeline	GST monthly; LUT renewal April; TDS quarterly; Transfer pricing by ITR due date
Cost From	Rs 5,000/month (early-stage startup)
Penalty	LUT non-renewal = IGST on exports; GST Rs 50/day; S.194J default = S.40(a)(ia)
Authority	GST Commissionerate Mumbai; STPI Mumbai; Income Tax; RoC Mumbai; DPIIT

Mumbai is one of India's largest IT hubs. Powai (IIT Bombay, SaaS startups), Andheri-Kurla (MIDC, SEEPZ exporters), BKC (GCCs, MNC offices), Lower Parel (VC-funded startups), Navi Mumbai (Airoli-Vashi IT Park). GST 18% domestic or zero-rated export via LUT. S.194J TDS. S.80-IAC tax holiday. Learn more about IT Accounting across India.

Patron's Marine Lines office handles GST Commissionerate Mumbai, STPI, and IT Department filings. Also see Accounting Services in Mumbai and GST Registration in Mumbai.

Content is reviewed quarterly for accuracy.

What Is IT/Software Accounting

Specialised financial management of technology companies - software product, IT services, SaaS, GCCs - covering GST at 18% domestic or zero-rated exports (LUT Rule 96A), TDS S.194J, startup tax planning, ESOP accounting, and Ind AS 115 revenue recognition. For Mumbai IT companies: GSTR-1 Table 6A export reporting, FIRC/e-FIRA, and transfer pricing S.92E for MNCs.

A Powai SaaS startup exporting to US: LUT annually (RFD-11), invoice zero GST, Table 6A, collect e-FIRA, claim ITC on domestic inputs. An Andheri-MIDC services firm with domestic + export: segregate 18% from zero-rated. A BKC GCC: ESOP perquisite in payroll, Form 3CEB transfer pricing. A Lower Parel freelancer < Rs 75L: S.44ADA presumptive at 50%. Each model = distinct accounting.

Key Terms for IT Software Accounting in Mumbai:

LUT (Rule 96A): Filed annually Form RFD-11. Zero GST on exports. FIRC/e-FIRA mandatory. Export in GSTR-1 Table 6A. ITC on domestic inputs claimable.

SAC 9983: IT services at 18% GST domestic. Export zero-rated via LUT.

S.194J TDS: 2% technical services, 10% professional consulting > Rs 50,000/year. Post-Oct 2024 CBDT clarification distinguishes the two.

S.80-IAC: 3-year tax holiday. DPIIT-recognised. 100% profit deduction. Turnover ≤ Rs 100 Cr. Pvt Ltd or LLP only.

Transfer Pricing S.92E: Form 3CEB. GCCs with Rs 100 Cr+ intercompany billing. Arm's length. Filed by ITR due date.

SAC 9983 + LUT IT Accounting

Who Needs IT/Software Accounting in Mumbai

SaaS Startups (Powai, Lower Parel): DPIIT recognition, S.80-IAC tax holiday, investor MIS (MRR, ARR, burn rate, CAC/LTV). Ind AS 115 revenue recognition. LUT for exports.

IT Services Exporters (Andheri-MIDC, SEEPZ): GST export LUT, FIRC tracking, STPI certification. Table 6A reporting. S.194J TDS on vendors.

GCCs / MNC Subsidiaries (BKC, Goregaon): Transfer pricing Form 3CEB. ESOP accounting. Intercompany billing reconciliation. 500+ employee payroll.

Mid-Size IT (Navi Mumbai, Thane-Belapur): Mixed domestic + export revenue. Multi-state GST if multiple offices. Tax audit S.44AB.

Freelance Developers (Pan-Mumbai): S.44ADA presumptive (< Rs 75L) or regular books + GST. LUT if exporting.

Edtech/Fintech/Healthtech (Worli, BKC): Complex revenue models (subscription + marketplace + licensing). Ind AS 115 five-step model. VC MIS.

IT Software Accounting Services Included

Service	What We Do
GST - Domestic 18% and Export Zero-Rated	Monthly GSTR-1/3B with GST Commissionerate Mumbai. SAC 9983. LUT (Rule 96A) for exports. Table 6A reporting. LUT renewal Form RFD-11 each April.
LUT Filing and Export Documentation	Annual LUT filing. Export invoices with LUT ARN. FIRC/e-FIRA collection and reconciliation. ITC claim on domestic inputs against zero-rated.
TDS - Section 194J and 194O	2% technical / 10% professional on payments > Rs 50,000/year. Quarterly 26Q. Form 16A. Section 194O for platform freelancers.
Startup Tax (Section 80-IAC)	DPIIT recognition support. S.80-IAC 3-year tax holiday application. Angel Tax S.56(2)(viib) documentation. S.54GB capital gains rollover.
ESOP Accounting and Perquisite	Grant, vesting, exercise tracking. Perquisite valuation (FMV - exercise price). TDS in monthly salary. S.17(2)(vi). Deferred tax for eligible startups.
Transfer Pricing (Section 92E)	For GCCs and MNC subsidiaries - TP study, benchmarking, Form 3CEB, APA support. Intercompany billing reconciliation.
Revenue Recognition (Ind AS 115)	SaaS subscription over contract period. Milestone-based project revenue. Licensing vs service. Five-step model for complex IT contracts.
Statutory Audit and Investor MIS	Companies Act audit + RoC Mumbai. Tax audit S.44AB. MRR, ARR, churn, CAC/LTV, burn rate for VC-funded startups. Board pack preparation.

Our Process

6-Step IT Software Accounting Process in Mumbai

Walk-in at Patron's Marine Lines office - accessible from Powai, Andheri, BKC, Lower Parel. Files with GST Commissionerate, STPI, and Income Tax.

Step 1

Company Assessment and Compliance Mapping

CA reviews incorporation, GST, DPIIT, STPI registration, client contracts (domestic vs export). Revenue mapped to 18% domestic or zero-rated. GST division identified. Walk-in at Marine Lines - accessible from Powai, Andheri, BKC, Lower Parel.

Revenue mappedCompliance gaps identified

Assessed01

Step 2

Chart of Accounts Configuration

Tally/Zoho with IT chart: domestic 18% and export zero-rated revenue, SaaS subscriptions, product licensing. S.194J TDS. ESOP. Multi-currency (USD/EUR/GBP). Cloud infra (AWS/Azure/GCP). Maharashtra PT configured.

IT ledgers liveMulti-currency enabled

Configured02

Step 3

Monthly Bookkeeping and Revenue Reconciliation

Client invoices with correct GST (18% or zero-rated). Bank receipts with forex gain/loss. FIRC/e-FIRA matched to exports. S.194J TDS on subcontractors. Employee payroll with ESOP perquisite, PF/ESI, Maharashtra PT. AWS/Azure costs reconciled.

Revenue reconciledFIRC matched

Booked03

Step 4

Monthly GST and TDS Filing

GSTR-1 by 11th: exports in Table 6A (without payment of tax for LUT). GSTR-3B by 20th with ITC. TDS quarterly (24Q salary, 26Q non-salary). PTRC by 15th (post-Feb 2026). LUT renewal reminder each March.

GST filedTable 6A reported

Filed04

Step 5

Monthly Financial Reporting

P&L by revenue stream (domestic/export/SaaS/licensing). Employee cost ratio. For VC startups: MRR, ARR, churn, CAC/LTV, runway. For GCCs: intercompany billing + markup. For IT services: project profitability + utilisation.

MIS by 10thInvestor-ready

Reported05

Step 6

Year-End Closure and Tax Compliance

GSTR-9 annual. Transfer pricing Form 3CEB (MNCs). S.80-IAC computation. Tax audit Form 3CB-3CD (S.44AB). Statutory audit + RoC Mumbai (AOC-4, MGT-7). LUT renewal for next FY. Records retained 8 years.

Year-end closedLUT renewed

Complete06

Documents Required for IT Software Accounting

Certificate of Incorporation / LLP Agreement
GST Registration + DPIIT Startup Recognition (if applicable)
STPI Registration (if applicable)
LUT Acknowledgement (Form RFD-11 ARN)
Client Contracts (domestic + export)
FIRC/e-FIRA for Export Receipts
Bank Statements (INR + Forex)
Employee Salary Records + ESOP Plan
Subcontractor Invoices + Cloud Infrastructure Bills (AWS/Azure/GCP)

Mumbai-Specific: STPI units: registration certificate + softex forms. GCCs: intercompany agreements, TP policy, parent correspondence. Startups: DPIIT certificate + investor term sheets.

Common IT Software Accounting Challenges in Mumbai

Challenge	Impact	How Patron Accounting Solves It
LUT Compliance Gaps	Five conditions under IGST S.2(6) for every export invoice. Failure = domestic 18% GST. Powai/Andheri startups discover gaps during GST audit when FIRC incomplete or payment received in INR.	Patron ensures 5-condition compliance per invoice. FIRC/e-FIRA tracked. LUT renewed each April before March 31.
Section 194J TDS Classification	2% technical vs 10% professional. Post-Oct 2024 CBDT clarification. 50+ freelancers = high-volume tracking. Default triggers S.40(a)(ia) disallowance of entire payment.	Contractor-wise classification documented. Quarterly 26Q filed. Form 16A issued per payee.
ESOP Taxation for Tech Employees	Perquisite (FMV - exercise price) taxable as salary S.17(2)(vi). TDS at exercise. BKC/Powai tech companies struggle with valuation + TDS timing. Deferred for DPIIT startups but TDS still computed.	ESOP valuation + TDS timing managed in payroll. Deferred tax for eligible startups tracked.
Transfer Pricing for GCCs	100+ GCCs in Mumbai. Every international transaction at arm's length. Form 3CEB by ITR due date. Incorrect pricing = adjustments + penalties. BKC/Goregaon GCCs with Rs 100 Cr+ face intense scrutiny.	TP study, benchmarking, Form 3CEB prepared. APA support. Intercompany billing reconciliation monthly.
Ind AS 115 for SaaS	Subscription revenue over contract period (not upfront). Milestone projects: POCM or completed-contract. Multi-element (software + implementation + support) need performance obligation ID. Many Powai SaaS startups incorrectly recognise annual revenue upfront.	Ind AS 115 five-step model applied per contract. Performance obligations identified. Revenue schedule documented for auditor.

IT Software Accounting Fees in Mumbai - 2026

Fee Component	Amount
Early-Stage Startup / Freelancer	Rs 5,000 - Rs 10,000/month (3 days onboarding)
Growth-Stage IT Company	Rs 10,000 - Rs 25,000/month (5 days)
IT Exporter with LUT	Rs 15,000 - Rs 40,000/month (5-7 days)
GCC with Transfer Pricing	Rs 50,000 - Rs 2,00,000/month (10-15 days)
SaaS with Ind AS 115 + Investor MIS	Rs 20,000 - Rs 50,000/month (7 days)

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 in Mumbai consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

IT Software Accounting Timeline

Stage	Estimated Timeline
Onboarding + Assessment	3-5 days (Marine Lines Mumbai)
Software Configuration	2-3 days (Tally/Zoho + IT chart + LUT)
Monthly Closure	By 10th (ongoing)
GSTR-1 (Table 6A exports)	By 11th monthly
GSTR-3B	By 20th monthly
TDS Returns	Quarterly (24Q, 26Q)
LUT Renewal	Each April (Form RFD-11)
Year-End + Tax Audit	15-30 days (GSTR-9 + 3CEB + S.44AB)

Critical: LUT not renewed by March 31 = IGST on every export from April 1. GST late: Rs 50/day. S.194J default = S.40(a)(ia) disallowance. Form 3CEB not filed = Rs 1L penalty S.271BA. Start professional IT accounting today.

Key Benefits

Why Choose Patron for IT Software Accounting in Mumbai

Marine Lines Office

Accessible from Powai, Andheri, BKC, Lower Parel. Walk-in for tech founders, CTOs, CFOs. GST export queries and startup tax discussed face-to-face.

400+ IT Clients

SaaS, IT services, GCCs, freelancers. LUT + Table 6A + FIRC built-in. ESOP + Transfer Pricing + Ind AS 115. No other Mumbai CA bundles all six.

LUT + Export + Startup Tax

Annual LUT renewal. Table 6A. FIRC tracking. S.80-IAC application. DPIIT recognition. Angel Tax documentation. Zero-rated compliance.

10,000+ Businesses

Including IT exporters, SaaS startups, GCCs, freelancers across Mumbai. 15+ years. 4.9 Google rating. Tally, Zoho, multi-currency.

Trusted by 10,000+ Businesses Across India

10,000+ Businesses | 4.9 Google Rating | 400+ IT Clients | 50,000+ Docs Filed | 15+ Years

Including SaaS startups, IT exporters, GCCs, and freelance developers across Mumbai. Offices in Pune, Mumbai, Delhi, Gurugram.

Accounting by IT Entity Type in Mumbai

Entity Type	Accounting Obligation	Mumbai Note
SaaS Startup (Export)	GST LUT, zero-rated, Ind AS 115, DPIIT, S.80-IAC	Powai/Lower Parel; investor MIS critical
IT Services Exporter	LUT, FIRC, Table 6A, S.194J TDS on vendors	Andheri-MIDC/SEEPZ; STPI compliance
GCC / MNC Subsidiary	Transfer pricing Form 3CEB, ESOP, intercompany	BKC/Goregaon; Rs 100 Cr+ intercompany
Freelance Developer	S.44ADA presumptive or regular; LUT if exporting	Pan-Mumbai; < Rs 75L eligible for 44ADA
Edtech/Fintech Startup	Complex revenue models; multi-stream GST; VC MIS	Worli/BKC; subscription + marketplace + licensing

Related Accounting and Compliance Services

Legal and Compliance Framework

GST for IT: Domestic: 18% SAC 9983. Export: zero-rated via LUT (Rule 96A) or IGST + refund. LUT annual Form RFD-11. Table 6A. FIRC/e-FIRA mandatory. SEZ also zero-rated.

Income Tax: S.80-IAC: 3-year tax holiday DPIIT startups. S.194J: 2% technical / 10% professional > Rs 50K/yr. S.92E: TP Form 3CEB for international. ESOP: S.17(2)(vi) perquisite. S.44ADA: presumptive 50% for professionals < Rs 75L.

Companies Act: S.128 books. S.44AB tax audit > Rs 1 Cr (Rs 10 Cr digital). RoC Mumbai AOC-4, MGT-7.

Other: FEMA 1999 (foreign investment). Maharashtra PT Act 1975 (PTRC by 15th). STPI certification.

Portals: GST Portal | Income Tax

FAQs - IT Software Accounting in Mumbai

Answers to common questions. Call +91 945 945 6700.

Quick Answers

IT company ka GST kitna? Domestic: 18%. Export: zero-rated (LUT file karo, IGST nahi lagta). LUT har April renew.

Startup ko tax holiday milta hai? Haan - S.80-IAC, DPIIT-recognised, 3 saal 100% profit deduction.

Freelancer ko TDS kitna? S.194J - technical 2%, professional consulting 10% (Rs 50,000+ per year).

LUT Not Renewed = IGST on Every Export. Start Today.

LUT not renewed by March 31 = IGST on every export from April 1 (cash flow drain). GST late: Rs 50/day. S.194J default = S.40(a)(ia) entire payment disallowed. Form 3CEB not filed = Rs 1L penalty. Every month of delay compounds risk.

Patron onboards in 3-5 days. Call +91 945 945 6700 or WhatsApp us. From Rs 5,000/month.

Your Tech Company, Compliant and Investor-Ready

IT accounting in Mumbai ensures GST compliance (18% domestic / zero-rated export), S.194J TDS, startup tax S.80-IAC, ESOP, transfer pricing S.92E, and Ind AS 115. For tech companies across Powai, Andheri, BKC, Lower Parel, Navi Mumbai.

Patron Accounting, Marine Lines, Mumbai. 400+ IT clients. LUT, Table 6A, FIRC tracking. 15+ years, 10,000+ businesses, 4.9 Google rating.

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IT Software Accounting Across India

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Content Created: 20 March 2026 | Last Updated: 20 March 2026 | Next Review: 20 June 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed quarterly (Freshness Tier 1) to reflect GST rule changes, startup tax provisions, S.194J CBDT clarifications, and transfer pricing guidelines. Next review: June 2026.

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