PE funds body wants ‘deemed exports’ status for services

The Indian Private Equity & Venture Capital Association (IVCA) sees the existing 18 per cent GST on ‘fund management fees’ of PE funds as a “big tax friction” affecting the onshoring of fund management activity in India. The thorny issue is that no input tax credit is available for the fund, which has to fork out the GST. Ultimately, the burden is borne by the investors in the fund. The indust…