GST on distributors ?No. of comments:1 KAMLESH CHAND SADAWAT, JODHPUR, 1236 On 21-Aug-2017"Present Direct tax scenario in India can be broadly summarized below.
S# Category GST Income Tax Remarks
1 Service class no yes as per law
2 Business community no^ yes* ^ collects from end user
and deposits to Govt.
* as per law
3 Brokers yes yes as per law
4 Politicians no exempt privileged
5 Less fortunate no no no substantial income
Above table indicates that community who receives commissions is subjected to both GST as well as Income Tax ( the only exception ). In business, Air tickets, train tickets etc. only end user is paying
GST .
In case of Mutual funds it is not difficult to find who is the end user
( out of AMCs , Distributors & investors ) .
Therefore , one can easily conclude that there is mistake some where in deciding to collect GST from distributors rather then investors .
In case it is collected from investors then it might slow down the growth of Mutual fund industry . probably that fear is makinf IFAs odd man out .
Please look into it and take it at at appropriate level
Regards "
The above message was sent on 03 08 2017 to
1) fmo@nic.in ( finance Minister office )
2) nagpal@sebi.gov.in
3) AMFI
4) All most all Mutual funds
but none had acknowledged it .
reminder mail was also sent to sl no 1 & 2
BIG QUESTION - IF THE PRESENT PRACTICE IS WRONG THEN HOW TO GET IT RECTIFIED ?