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GOOD..but two big Qs-1-how to ascertain 10-lac income is earned. becas it can be anticipated in last Quarter only..2-service tax is on income above 10-lac only or on whole? ..means if income is 11 lac..service tax is on 1-lac only or on 11 lac?..if it is on whole--its better not to work in last two months. or transfer business to other...3-is it on taxable income or gross..
Instead of talking much about Service tax issue why do we are not seeking solution from Ministry of finances who implemented the rules than to SEBI, AMFi or AMCs . This is completely illogiccal to pay service tax by distributor in any form ,then why are we not taking this issue legally.
After 10 lakhs in a fy what will be charged? When 10 lakhs comes after 1 fy what will be chafged?
Thats really a good article and brings into a simple solution which I think each and every AMC needs to follow or the AMFI needs to make it as a rule. That is: If we need to serve investors then there should be no direct fund, as the definition of service tax 1994 says tax levied on a service provider or service receiver or any other person made so liable. It is an indirect tax wherein the service provider collects the tax on services from service receiver and pays the same to government of India. Like in a hotel waiter serves food to customers. Here waiter does not give service tax for his services neither do the hotel its the customers who pays it which later on pays to the government by hotel. Then why AMC or AMFI does not follow the same regime.