Family offices manage wealth for high-net-worth families. They charge advisory and management fees to family members or family entities. These fees attract GST at 18% and are subject to the related-party valuation rules under Section 15(4) read with Rule 28.
This article explains the GST advisory for family offices.
Fee Structuring
- Advisory fees: 18% GST.
- Management fees: 18% GST.
- Structuring for tax efficiency.
Related-Party Compliance
- Arm's length valuation under Section 15(4).
- Rule 28 compliance.
- Documentation of value.
GIFT City Structuring
- Family Investment Fund (FIF) framework.
- GST exemption on management fees.
- Tax holiday.
ITC Management
- Eligible ITC: Office rent, software, professional fees.
- Blocked credits under Section 17(5).
Conclusion
Family offices need GST advisory that addresses fee structuring and related-party compliance. A CA firm with family office expertise ensures compliance and tax efficiency.
At Anuj Desai & Associates, we provide GST advisory for family offices. Our team handles fee structuring, related-party compliance, and GIFT City structuring.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.