GST applicabilty on investment outlay
This query is : Resolved
04 July 2022
Assessee is an LLP Firm in the business of making music videos.
He has approached an investor to invest in his video for completion & distribution of song & in return a % of revenue will be shared with the investor.
Query 1 - Is GST applicable on the above transaction at the time of Investment inflow (for Assessee) & revenue sharing outflow( for Investor), if YES under which HSN code ?
Query 2 - If GST not applicable, then how the same will be shown in BOA at the time of investment incoming & when the revenue start generating (outflows) at the time if sharing of revenue in the said song. for both Investor & Assessee.
He has approached an investor to invest in his video for completion & distribution of song & in return a % of revenue will be shared with the investor.
Query 1 - Is GST applicable on the above transaction at the time of Investment inflow (for Assessee) & revenue sharing outflow( for Investor), if YES under which HSN code ?
Query 2 - If GST not applicable, then how the same will be shown in BOA at the time of investment incoming & when the revenue start generating (outflows) at the time if sharing of revenue in the said song. for both Investor & Assessee.
04 July 2022
1 GST not applicable on investment and on revenue sharing..
2 GST not applicable on such tranfer.
GST only applicable on sale to outsider.
2 GST not applicable on such tranfer.
GST only applicable on sale to outsider.
05 July 2022
The Investor is not investing in the company / LLP, but only in 1 song, so no stakes are given in the LLP.
So how to treat this investment in the books of accounts.
Can't treat as loan as the same is not to be returned back if the revenue is not reached as per estimates.
So how to treat this investment in the books of accounts.
Can't treat as loan as the same is not to be returned back if the revenue is not reached as per estimates.
05 July 2022
Treat it as advance received for making music video. GST applicable on such advance received.
05 July 2022
SAC 999612
1) It would fall under SAC 999612 as Motion picture, videotape, television and radio programme production services.
1) It would fall under SAC 999612 as Motion picture, videotape, television and radio programme production services.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Building and other construction workers welfare cess act 1996
- Bank Accounts in Balance Sheet for ITR 3
- ITR validation error - Balance sheet is not filled
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Annual return of gst limit
- Eway bill for machinery reparing
- TDS ON CASH WITHDRAWALS...
- Form 10BD Filling
- Registration as Authorised Representative of minor
- Change the gender in the registration of icai
- Lift replacement entries in housing society
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
