Portfolio Management Services providers manage client portfolios for a fee. The fees — fixed management fees and performance-linked fees — attract GST at 18%. PMS providers must also manage ITC, invoicing, and compliance with SEBI regulations.
This article explains the GST compliance services for PMS providers.
Fee Structuring
- Management fees: Fixed percentage of AUM, subject to 18% GST.
- Performance fees: Based on returns above benchmark, subject to 18% GST.
- Invoicing: GST-compliant invoices with correct SAC codes.
ITC Management
- Eligible ITC: Office rent, software, research, professional fees.
- Blocked credits: Section 17(5) restrictions.
- Reconciliation: GSTR-2B matching.
Return Filing
- GSTR-1 and GSTR-3B monthly.
- GSTR-9 annual.
- Reconciliation with books.
SEBI Compliance
- Disclosure of GST in fee statements.
- Client communication.
- Regulatory reporting.
Conclusion
PMS providers need GST compliance services that address fee structuring, ITC, and SEBI coordination. A CA firm with financial services expertise ensures compliance and optimises tax position.
At Anuj Desai & Associates, we provide GST compliance services for PMS providers. Our team handles fee structuring, ITC, and return filing.
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.