AIFs, Portfolio Management Services, and SEBI-registered intermediaries operate at the intersection of financial services and GST. Their compliance obligations are complex — export of services, RCM on trustee fees, carried interest treatment, and GIFT City structuring. A CA firm with financial services expertise ensures that these issues are managed correctly.
This article explains the GST advisory services for AIFs and PMS.
Fund Management Fees
- Export of services: Assessing whether fees to offshore investors qualify as zero-rated exports.
- LUT filing: Filing LUT for zero-rated exports.
- Valuation: Determining the value of management fees.
Carried Interest
- Characterisation: Assessing whether carried interest is a service fee or capital gains.
- GST implications: The 18% GST risk on carried interest.
- GIFT City exemption: Structuring carried interest through GIFT City IFSC for GST exemption.
Trustee Fees
- RCM applicability: Whether the AIF must pay GST under RCM on trustee fees.
- ITC eligibility: Whether the fund can claim ITC.
GIFT City Structuring
- FME registration: Obtaining IFSCA registration.
- GST exemption: Management fees and carried interest exemption.
- VCC framework: Structuring through Variable Capital Companies.
Conclusion
GST advisory for AIFs and PMS requires deep expertise in financial services, cross-border taxation, and fund structures. A CA firm with this expertise ensures compliance and optimises tax efficiency.
At Anuj Desai & Associates, we provide GST advisory services for AIFs, PMS, and SEBI-registered intermediaries. Our team handles fund management fees, carried interest, 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.