Profit sharing arrangements gst

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..... Profit sharing arrangements gst
Query (Issue) Started By: - Madhavan iyengar Dated:- 29-12-2019 Last Reply Date:- 30-12-2019 Goods and Services Tax - GST
Got 4 Replies
GST
A Company X in .....

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..... india exports its products ie goods to its holding company B in Germany at say ₹ 100 and the German company in turn sells them to its customers in Europe at ₹ 100 + margin Now there is a .....

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..... arrangement between company X and its holding Company B In germany that of goods are sold above ₹ 100 /- then the excess of ₹ 100 will be shared between X in India and B in germany in rati .....

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..... o of 75: 25 is X will get 25% of the excess Now this excess of 25% which X receives as per arrangement will it be non gst supply being a profit sharing arrangement experts please clarify Reply By .....

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..... Ganeshan Kalyani: The Reply: In my view, GST is not applicable. This is because the amount is received toward export of goods. Reply By Mahadev R: The Reply: As it is towards export of goods, the .....

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..... re should not be any GST impact. Reply By Madhavan iyengar: The Reply: Thanks for the replies In case it is treated as consideration towards sale of goods then it has to be shown as zero rated sup .....

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..... plies ie exports and disclosed in GST returns But since it is a profit sharing arrangement whether it is a supply at all Reply By Ganeshan Kalyani: The Reply: In my view, it is 'other income .....

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..... 9; and not subject to GST. No need to show in GST return.
Discussion Forum - Knowledge Sharing .....

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