USA Company - US Citizen- Living India more than 3 years

[Prime Edge]

Hello,

I am USA Citizen. I have Tax return filing Firm in USA. Its LLC sole proprietorship. Its single member only company. I am the member. I run that company from India for USA Clients and Money goes to that company and later that money comes to member of that company. That means money will come back to me. I file the tax return in India and Report the income. Do I have to file GST as LUT? As far as I feel that since money is going to Company, I don't have to deal with GST.

Please assist on this query.

Thanks.

[Rajagopalan Ranganathan]

sir,

Please elobarate the nature of service provided by you. Then only proper advise can be provided.

[Prime Edge]

LLC's Service : To File Tax Return of USA Based Customers.

[KASTURI SETHI]

In my view your service is export of service. Hence exempted as zero rated supply. Value of export has to be included to arrive at threshold exemption limit.

How to compute Aggregate Turnover of ₹ 20 lakh/` 10 Lakh. - Term “aggregate turnover” has been defined in Section 2(6) of the Central GST Act, 2017 to mean as the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes Central tax, State tax, Union Territory tax, Integrated tax and Cess.

The value of following supplies shall be taken into account while computing the limit of ₹ 20 Lakh/ ₹ 10 Lakh.

(a)	Value of all taxable supplies excluding the value of inward supplies
(b)	Value of exempted supplies
(c)	Value of export goods or services or both
(d)	Value of inter-State supplies of persons having same Permanent Account Number to be computed on all India basis

Thus in view of the above legal position and in view of your turnover in the preceding year as well as this year, you can decide.

[Prime Edge]

Suppose Revenue of Company is ₹ 28 Lakh and Net Revenue is ₹ 18 Lakh.

But, I as Member of company will get ₹ 18 Lakh, Then GST Will require or not.

[Prime Edge]

Suppose Revenue of LLC Company is ₹ 28 Lakh and Net Revenue is ₹ 18 Lakh.

But, I as Member of company will get ₹ 18 Lakh, Then GST Will require or not?

[KASTURI SETHI]

Pl.read Section 15 of CGST Act, 2017. You are required to obtain registrationm because you cross 20 lakhs. No benefit of 10 lakhs which you are expecting for.

[Prime Edge]

Sir

If I convert my LLC single member company to multi-members company, then revenue of company will distributed to member of Partnership LLC company. Do I still fall into GST registration and filing GST Return?

[KASTURI SETHI]

Company is treated as a person. One irrespective of members in a. Company. If you talk of partnership firm, it is one.

[Prime Edge]

i think I didn't explain my company structure.

Prime Edge LLC(USA Based)

Member 1 : Janak Shah

Member 2: Akshay Shah

Both members are based on India. Prime Edge LLC is providing service tax return filing to USA based Customers. Both members are paying the taxes to India for the profit which coming from LLC.

Based on my understanding both members are not required to file GST even revenue goes more than ₹ 20 lakh. Please confirm it.

[Prime Edge]

Any reponse/feedback on my response? Please help me.

AI Summary

Export of services: zero rated supply still counts toward GST registration threshold, so registration may be required.
Services consisting of preparation of foreign tax returns supplied by a US based LLC operated from India are export of services and zero rated, but export receipts are included in aggregate turnover for GST threshold assessment. A company is a distinct person; its turnover must be assessed at the entity level and registration is required if aggregate turnover exceeds the statutory threshold. Converting membership or distributing profits to members does not remove the company's registration obligation.