I had a chance to go through the book titled " Service tax Ready Reckoner, ( 24th Edition), authored by Mr. V.S. Datey. The first part of the book contains, Memorandum explaining the provisions of Finance Bill, 2015. Under which serial No.9 explains the Reverse Charge Mechanism, which deals with services provided by Mutual fund Agents and it clearly states that, and I quote " Services provided by mutual fund agents, mutual fund distributors and agents of lottery distributor are being brought under reverse charge consequent to withdrawal of exemption on such services. Accordingly, Service Tax in respect of mutual fund agents and mutual fund distributors services shall be borne by assets management company or, as the case may be, by mutual fund receiving such services. This change will be effective from 1.4.2015." Unquote.

Dear sir, latest news as per sebi norms how much mf distributors brokarage uprent and tril commission

Har bar Mutual fund Distributer per hi gaz kyo , pahle 2.25% commision se .5 or 1% or ab 14% service tax , govt 14% service tax le le per commision mf distributer ko 2% tak to de had ho gai pata nahi ye sub mil kar is industry ko samapt karna chahte hai

We should go on strike?

first thro DIRECT plans and now once agin AMC S and AMFI jointly twisted the service tax and try to impose on , All mutual fund advisors /distributors / IFA s join together have to seek clarity from Highcourt / Supreme court, not from AMC /Amfi . All of us even willing to spend 1 month of service tax money as court expenses .

kindly note that the concept of service tax is itself not clear. any product manufactured and rendered after paying a to z taxes us sold in the market fixing the mrp. the services rendered can be considered after guarantee/warranty period coming to mf products the whole structure of payment whether upfront/trail is without knowing the tail of the products services / offered. while their is no SRO , some self certified body representing is without tooth and does not understand the complexities of the problem. in the last 6 months the budding ifa brought some of business with the hope and without hope that their aspirations are killed by unstructured amc/distributor /bank combination killed the accha din concept. in india it is always the waiters suffer as they are sandwiched as they do not know the head or tail of the business except selling product. hence governemnt is a mute spectator and levy taxes as and when their needs exceed their wants. god bless

A distributer is nither a service provider nor a service receive . So hou could it applicable for distributer.

i really appreciate the people who did miselling and earned high brokerage. and i fully support them its simple If someone is highly uncertain about is future income then its best to make the max of what you are getting now. this might be the basic cause of the hue n cry of ST commissions etc. why dont these guys get all financial service providers on one platform ask the insurance agents /companies disclose where the money is invested in a money back or endowment policy where th commission is as high as 35-40% why always MF dist targeted on all fronts may be compliance or anything else. So Guys do one thing do miselling, sell products with high commissions only and please look into YOUR interest or else u wont sustain. Simply treat MF selling as any other product where ever u get high commissions SELL only that product dont care whether the investor is benefiting or not else u wil die hungry

Very well written article. The service tax is not going to be 14% for all time to come. It will soon be increased to 16%. We are witnessing increase in salaries are above 15% in many cases and it is 100% in the case of MLAs, MPs and Ministers. But in the case of IFAs there is a huge cut by capping the commission and also making him liable for payment of service tax and thus punishing him twice for earning livelihood. What a wonderful way to tax him until he is dead.

Things as they stand are put into the right perspective. Weeks ahead should clear the suspense.

The impact is far reaching . Actually , if we read the message between lines the FM expressed that he is initially increasing it to 14 , paving a way to match with that of excise duties( or bring in uniformity , and , make way for GST blah blah..). That means , a gradual increase of this tax rate is on the cards.That said , lets say , if next year he fancies that the service tax be 20%. Then waht? Is it going to be borne by the distributor? This is a long term issue , and need more study. The best way out shall be to find out a way to avail full vat creidt , and is implemented as a pure indirect tax in real sense.

distributor is thescapgoat.all are fine.amc,investor r&t they dont pay s.t.only distributor pay 14% service tax to the nation we are really proud.

Why not we should go on strike?

This is a biting issue. I very much agree with Vaibhav Dhoka from Pune that Distributors must come together and take this issue to the High/Supreme Court. One thing I fail to understand is why/How All distributors come under tax net ? Only those who earn more than 10 lakhs should be liable for service tax.

Very true, But why MF distributors are so special that they only bear this service tax. When other businesses can pass it on to the consumer, why not MF. May be there is a cap on TER. I see no body is willing to look at alternatives. who is interested in digging deep on alternatives. I do not see this happening as of now.

Even earlier when Service Tax was applicable, it was levied/deducted from commissions , regardless of the exempt income levels. Even now, even a IFA with income less than Rs.10lacs ends up taking a 14% cut !!!!

only sundaram whether we are paid any amount in upfront or trail atleast sundaram stand on our side.promote sundaram amc if stop distributing mf.

Very well written and capture almost all options which we look for. hope for respite !

All what is explained seems very Practical and easy to implement. There must be a way out to discuss the technicalities of the scheme through the Committee with the Finance department. Hope AMCs takes interest and come out with the better options for all stake holders.

Need to support sundaram mutual fund strongly. The only fund house and ceo supported our community

And yet again, the "Bali Ka Bakra" is the poor IFA!!!! We need to support AMCs like Sundaram which has shown the guts to take the side of IFAs. Its surely not the case of "Why Mutual Funds only"........it is more the case of the the future of IFAs". Its looks like we have to stand up to the whims and fancies of AMFI which clearly has shown a distinct bais towards Large AMCs, who do not mind anatogising the IFAs.

Distributors should come together and take reference from supreme court as he is middleman and is made scapegoat to pay service-tax.There are many unanswered question in levying service tax.1)What about direct applications wherein service tax will be skipped and government will be at loss.2)The service ends on submission of application in present case it becomes tax on distributors income as after initial upfront he gets trail commission..3)He is not service provider nor service receiver.Therefore it will be as ZIZIYA KAR on distributors.

If UPFRONT & TRAIL Commissions are reworked in balanced way, Income of Distributors may not decline.

We should go on strike.

AMFI should communicate to the MF investors through public advertisement that the Service Tax will be borne by the agent or the AMC and not by the investor as has been said in some section of media. Todays Times of India clearly declares that "MF investment through agent has become costlier from 1st April." Please communicate this to AMFI through your forum, in the wider interest of both the AMCs as well as the agents.

And the confusion and guessing game continues, when will SOMEONE stand up for the distributor or is he going to become extinct?