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
News Headlines »
 Know all about how to file ITR FY 2017-18
 Government extends sale of pre-GST goods with stickers of revised price till July 31
 All 7 ITR forms for assessment year 2018-19 activated for e-filing: Income Tax Department
 Check if new salary structure is income tax efficient
 GST refund drive extended till June 16
 5 income tax returns filing mistakes you must avoid
 Your complete guide to file income tax return
 Input Tax Credit refund drive till June 14
 File Your Income Tax Return for FY 2017-18 Immediately, Know Why
 Which ITR form to file if income is in dollars?
 5 investment lessons to maximize returns; here is all you need to know

No service tax on entry, exit loads charged by MFs
May, 17th 2007
In a major relief to mutual fund houses, the Finance Ministry has clarified that the entry and exit load charged from investors by mutual funds would not attract service tax under the category of fund management services.

The revenue department has said that entry and exit load charges are not towards the fund management services provided by an asset management company (AMC), but to meet the initial issue expenses and other specified expenses of the mutual fund.

Initial issue expenses of a mutual fund include initial brochures, SEBI approvals, advertisement, registrars, preparation of certificate, postage and distribution etc.

The Central Board of Excise and Customs (CBEC) has come up with this clarification in the wake of questions raised, especially within the revenue department, on whether service tax would be chargeable on the `entry and exit' load amount charged by a mutual fund to the investor.

The Government has gone along with the recent Customs, Excise and Service Tax Appellate Tribunal (CESTAT) judgment, which had said that service tax cannot be levied on the entry and exit load charged on an investor by a mutual fund.

In May last year, the Directorate General of Central Excise and Intelligence (DGCEI) had shot off letters to various fund houses and sought information as to whether they were paying service tax on the entry and exit loads charged from investors.

The DGCEI took a view that service tax was applicable on the entry and exit loads as they represented the value of services rendered by the mutual fund to investors.

The total assets under management of the Indian mutual industry as at end-April 2007 stood at Rs 3,52,670 crore.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-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