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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Service Tax »
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?

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 2018 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