Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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
 
 
 
 
Popular Search: due date for vat payment :: articles on VAT and GST in India :: VAT RATES :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: Central Excise rule to resale the machines to a new company :: empanelment :: VAT Audit :: TDS :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« News Headlines »
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter
 How will GST impact the Indian economy
 10 days left to file your first GST return. This is how you do it
 What is property tax and how is it calculated…
 File income tax returns in time to carry forward losses
 Missed the deadline to file income tax returns? Here is what you should do
 Who has to report foreign assets in Indian income tax return and how to do it

MFs may be freed of service tax loads
April, 17th 2007

This should come as a major relief to fund houses who have been on the tenterhooks for the past few months over the issue of service tax. The finance ministry is veering round to the view that the entry load and exit load charged from investors by mutual funds should not attract service tax.

Loads are charges that investors bear while buying or selling MF units, and MFs use this money to recover scheme expenses on distribution, marketing, advertisement and roadshows. A recent Central Excise and Service Tax Tribunal judgement has held that service tax cannot be levied on entry load and exit load charged by mutual funds. The government is likely to toe the line taken by tribunal on the issue.

The judgement has set the tone, but a final view on the issue would be taken soon, a source said. The government may issue a clarification on it soon, he said. The Directorate General of Central Excise Intelligence (DGCEI) had in May 2006 written letters to fund houses enquiring if they were paying service tax on entry load and exit load collected from investors. It had even sent a note to the Central Board of Excise and Customs on the issue favouring levy of service tax on entry and exit load.

When an investor buys into a mutual fund scheme, he has to pay a little extra over and above the price of the unit, and that extra amount is called the entry load. Similarly, when he sells his units, the fund levies a charge. This charge is called exit load. It is deducted from the net asset value passed on to an investor at the time of redemption. Both these charges are scheme-specific and a mutual fund may decide whether to levy either, both or neither.

If service tax is levied on entry/exit load, it may well be passed on to investors, leading to increase in their costs per unit. The directorates original view was that entry/exit loads reflected the value of the service rendered by the mutual fund and thus should attract service tax.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

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