Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: cpt :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: empanelment :: VAT Audit :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« Service Tax »
 All GST council decisions taken by consensus and will be passed in states as well
 It would be wiser to put off implementation of GST till September
 Revised GST legislation may pinch working capital of industries
 GST to result in price reduction for consumers: Hasmukh Adhia
 Bill gives free hand to CAG to audit GST operation
 Lok Sabha to discuss GST bills on Wednesday
 GST to strengthen organised logistics companies
 No need for Parliament nod to waive property tax in Delhi
 CBEC to be renamed, reorganised for GST regime
  GST debate now continues on categorisation of products
 GST coming soon, but don’t expect quick benefits; rich valuation to stall stocks

Service tax on MF sales perplexes distributors
March, 20th 2015

The service tax on mutual fund (MF) agents has put the industry and distributors in a quandary. While some industry officials and agents want it to be included in the total expenses ratio (TER) borne by investors, they fear the distributor community would be made to pay the tax.

MF distributors were paying service tax at 12.36% when it was introduced. Distributors were exempted from the tax in 2012. The union budget has however brought MF agents under the service tax net again. This means that fund houses would have to deduct a service tax of 14% on commissions paid to distributors henceforth.

The move comes at a time when the market regulator Sebi is looking to cap upfront commissions paid to distributors. If service tax on MF agents is included, it would increase the TER from about 2.5% to 2.64%.

"Service tax has to be collected from investors," says Suresh Parthasarathy, president, Independent Financial Professionals Association. For instance, when shares are bought and sold on the stock exchanges, it is the investor who pays service tax and not the broker, he points out. "Since both the services are similar, service tax has to be collected from the investors," he says.

A senior official with a leading fund house says since the service is being availed by investors, they should pay the tax as well. "The (MF) industry wants the impact on the industry to be minimised. We are trying to make it (service tax) as part of TER," says a top official with a bank-sponsored fund house.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions