TMI BlogProfit sharing arrangements gstX X X X Extracts X X X X X X X X Extracts X X X X ..... A Company X in 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 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n germany in ratio 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 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 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wards export of goods, there 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 supplies 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... my view, it is 'other income' and not subject to GST. No need to show in GST return. - Profit sharing arrangements gst - Query Started By: - Madhavan iyengar Dated:- 29-12-2019 Goods and Services Tax - GST - Got 4 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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