Implication on mf distributors

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2011 Dear All,

One of my client has received the commission statement for MF distribution after deducting Service Tax amount.
The service tax amount is also not calculated on gross commission amount.

Do let me know whether the gross amount should be paid to the MF distributors (without deducting service tax) and the service tax should be paid by the MF house.

Thanks in advance.

CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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05 December 2011 mutual fund distributor get his commission after deduction of service tax...because many mutual fund agencies who avail service of MF distributor required to deduct service tax before payment of commission...and deducted service tax nonrefundable to MF distributor.

same is happened with me because m also certified mutual fund advisor.

but according to service tax it shall reverse charge of service tax..service recipient shall be liable to service tax

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2011 pls note there is nothing like deduction of service tax. It only works under reverse charges method. GTA method should be followed here also.

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CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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05 December 2011 I also know Reverse charge applicable in this case...but mutual fund agencies not give any clarification this regards why are they deduct service tax from commission