SAC Code 9965 vs 9967: Differences, Tax Rates & Invoice Rules
Key Takeaways & Executive Summary
On freight invoices, SAC 9965 designates road freight transport by a Goods Transport Agency (qualifying for 5% RCM or 12% Forward Charge), while SAC 9967 designates auxiliary transport services like loading, warehousing, and container handling (taxed at 18%). Misclassifying them leads to tax audit notices.
1. What Falls under SAC 9965?
SAC 9965 specifically covers the transportation of goods by road in trucks, trailers, or tankers where a consignment note is issued. It qualifies for the 5% RCM regime.
2. What Falls under SAC 9967?
SAC 9967 applies to supporting freight services: cargo handling, packing, loading by crane/labour, storage, and detention/halting services. These are normally taxed at 18% standard rate unless billed as an inseparable composite supply of freight.
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Frequently Asked Questions
If loading charges are included in freight, which SAC code applies?
If billed as a single composite supply of freight, the principal supply SAC 9965 applies to the entire amount.
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