GST on Partners Remuneration and Interest

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..... GST on Partners Remuneration and Interest
Query (Issue) Started By: - Krishna Murthy Dated:- 6-10-2019 Last Reply Date:- 7-10-2019 Goods and Services Tax - GST
Got 4 Replies
GST
Sir, is GST applicable on amount received by partners from the partnership firm as Remuneration and Interest. Whether the same fall under the definition of 'supply' under GST? If yes whether the same a .....

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..... re exempt supplies? Reply By atul rathod: The Reply: No, GST is not liable on remuneration received by partner as the same will be treated as transaction in money. And also could it shall be treated as self service as partners and firm would be treated as one in terms of partnership act I understand. Reply By Ganeshan Kalyani: The Reply: In my view, GST is not applicable. Reply By Krishna Mu .....

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..... rthy: The Reply: Thanks for your reply. In that case, since partners and firm are same, both remuneration and interest are outside the ambit of supply and hence cannot even be considered for aggregate turnover. Can we take that view? In our case, if the both are considered for aggregate turnover, the partner would be required to obtain registration and hence liable to tax. Reply By KASTURI SETH .....

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..... I: The Reply: Dear Querist, In your view, such remuneration and interest must be an integral part of 'non-supply' (should be part of Schedule-III) in order to avoid being included into the aggregate turnover. Hence you are not satisfied with 'exemption' or non-applicability of GST. Both are not part of Schedule-III. You will have to take shelter of decisions of AARs and case laws .....

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..... . It also depends upon the terms and conditions of the agreement. So case laws/decisions of AARs have to be read with the agreement.
Discussion Forum - Knowledge Sharing .....

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