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Is GST applicable???

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VISHAL JAIN

Self Employeed

119 Points Posted on 14 November 2021

Case: I have client who is giving 25lacs to friend who is making flim in return the flim maker friend has entered into contract to share 12% of profit of whatever the flim earns.
Suppose the flim is about to earn 3cr
and as per contract the investor will get 36lacs in return including his investment. Is GST applicable to the investor and if on what amount?

Replies (3)

Quick Summary

This discussion explores whether Goods and Services Tax (GST) is applicable to an investment in a film project. The case involves a client investing £25 lakhs for a 12% profit share, potentially earning £36 lakhs. The applicability of GST hinges on the nature of the contract – whether it's a company investment, partnership, or joint venture. If it's a joint venture, GST is likely not applicable. However, if it's an investment not structured as equity or a loan, GST may be attracted.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 14 November 2021

Depends on the nature of contract. Whether it is an investment in company or a partnership or a joint venture. It will depend on the nature of contract