The Complete Invoicing & Contract Playbook for Indian Agencies & Freelancers
Rahul Verma
· Direct & Indirect Tax Specialist· 6 min read
Running an agency or professional consulting firm in India requires balancing client creativity with rigorous financial discipline. Yet most agencies invoice reactively: an estimate in WhatsApp, a contract over email, an invoice as a detached PDF, and payment reminders that feel like begging.
Service Accounting Codes (SAC 9983) and GST registration
Most Indian IT, marketing, consulting, and design agencies fall under SAC code 9983 (Other professional, technical and business services), attracting 18% GST (9% CGST + 9% SGST for intra-state, or 18% IGST for inter-state).
Service providers must register for GST once annual aggregate turnover exceeds ₹20 Lakhs (₹10 Lakhs in special category states). Export of services (working for international clients with FIRC / BRC) can be zero-rated under a Letter of Undertaking (LUT).
TDS deductions: Section 194J vs 194C
Clients frequently deduct TDS under Section 194J at 10% (for professional services) or 2% (for technical services). Creative agencies and production houses often debate whether their deliverables constitute contract work (194C at 1% or 2%) or technical fees (194J).
Clearly separating licensing, software deliverables, and media retainers in your proposal and contract prevents excessive TDS withholding and preserves your monthly cash flow.
Milestone-linked billing and cryptographic e-signatures
Never send an invoice for project completion without client sign-off on the milestone. Dyopact seals proposals, milestone completions, and invoices into one unalterable graph, ensuring that when the client approves Milestone 2, the corresponding GST invoice is generated and sent with full audit transparency.
Rahul Verma
Direct & Indirect Tax SpecialistOver a decade advising Indian businesses on GST Rule 46 invoicing, E-Way Bill transit compliance, and corporate tax structuring.