🇮🇳India

LPA वितरण उल्लंघन

3 verified sources

Definition

Distributions to LPs/GPs attract 10% TDS u/s 194LBB; GST on management fees tied to carry; manual errors flag mismatches in GSTR filings.

Key Findings

  • Financial Impact: ₹1 lakh+ TDS penalty per default; 18% GST on 2% management fee = ₹3.6 lakhs on ₹20 crore fund
  • Frequency: Quarterly distributions
  • Root Cause: Manual verification of waterfall tiers against tax withholding requirements

Why This Matters

The Pitch: VC/PE funds in India face ₹2-5 lakhs GST/TDS penalties yearly from waterfall misreporting. Automation ensures compliant calculations.

Affected Stakeholders

Tax Consultants, Fund Accountants

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

वाटरफॉल गणना त्रुटि

₹5-15 lakhs per fund in clawback reimbursements and legal fees; 20-40 hours/month manual recalculation

कैरिड इंटरेस्ट दुरुपयोग

1-5% of total distributions (₹50 lakhs - 2 crore) in potential clawbacks per fund lifecycle

करried इंटरेस्ट गणना त्रुटि

₹936 करोड़ GP carry on ₹4,565 करोड़ profits; clawback risk up to 20% of distributed carry (₹187 करोड़ in example case)

मैनेजमेंट फीस कैलकुलेशन में अनुपालन लागत

2% management fee = ₹83 करोड़/year on ₹4,150 करोड़ fund; TDS 10% (₹8.3 करोड़) + GST 18% (₹14.9 करोड़)

करried इंटरेस्ट टैक्स गलत वर्गीकरण

Tax differential 10%+ on ₹2 करोड़ carry = ₹20 लाख extra tax + 200% penalty (₹40 लाख)

फॉर्म PF फाइलिंग अनुपालन जुर्माना

₹5,000 to ₹50 लाख penalty per violation; 40-80 hours/month manual effort for large AIFs costing ₹2-5 लाख in CA fees.

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