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The service tax is already being deducted from NAV through expense ratio. As service tax can not be charged twice for the same service, the question of charging service tax on the income derived from expense ratio (commissions paid to the distributor - both upfront and trail from expense ratio) doesn’t arise. In all services the tax is passed on who service is availed. In Mutual fund also the ultimate services utilizer are investor and AMC thats why they should born the service tax.

This is a platform to share our views and grievances as well. Who is this person who has objected by name "noname" and arn 99999 on 2nd march 2015 and giving advice to mr. shyam sunder for living simple life. Anyway I request amfi/sebi/ and mf professional bodies to approach FM and seek concession in charging service tax.

Dear Muutal fund agents and Distributors, We should all opt in for the transaction charges. Secondly, from 01.04.2015, AMCs will have to increase our commissions by atleast 16.27% so as to compensate for the loss of our income by way of service tax. As AMCs are charging the service tax to the investors in the fund management charges, I feel they will readily agree to increase our commissions adequately to compensate for the loss.

Actually AMCs havr to part, as they are going to compansate service tax paid on behalf of distributor with the service tax has to be paid for the management of funds. Therefore they are going to benefit from new law.

SERVICE TAX IS NOT APLIED TO LIC AGENTS WHY TO MF AGEWNTS

Imposing of both the Direct Tax (Income Tax ) and Indirect Tax (Service Tax of 14 %) to Mutual Fund Agents by removing it from negative list will attracts heavy taxation on Distributors earning. AMFI , AMC and Distributors Forum should give representation to Honorable Finance Minister to reconsider it and again put the Mutual Fund Distributors to negative list in order to survival of New Distributors..

In case of fee charged by the distributor, as the service given by Mutual Fund Distributors is removed from the negative list from the next Financial Year onward in the budget, he should pay the service tax on the fee amount (if it is above the threshold limit) on his own to the tax department.

If commission paid is from the pockets of fund houses (upfront commissions paid in a majority of the cases as in the case of upfront commissions of closed ended funds, tax savers etc., come under this category) then the question of service tax comes in to play. In those cases too as the distributor gives service to the fund house and as service tax is a pass through mechanism, service tax should be borne by the fund houses.

The service tax is already being deducted from NAV through expense ratio. As service tax can not be charged twice for the same service, the question of charging service tax on the income derived from expense ratio (commissions paid to the distributor - both upfront and trail from expense ratio) doesn’t arise.

The levy of service tax on commission earned from mutual funds from the IFAs is unjustified. Majority of IFAs are earning less than Rs.5 lacs as commission and they are depending on this income for livelihood and surviving. Their income is subject to income-tax and are paying tax wherever applicable after availing 80C, 80D etc. How can they pay further 14% or 16% as service tax? There can only be Income-tax for the earnings. Therefore I request all the AMCs and the IFA forums to prevail upon the Government the need to withdraw the tax proposed.

Dear friends this is the way what happened in 2009 removal of entry load in mutual fund investments which lead to negative growth & outflow of funds from mutual funds.Actually the service tax amount is to be levied on investor at the time of investment in the mutual fund scheme or it should be the part of expense ratio of the fund.Anyway I request you all to opt in if you are not opted in for the transaction fees atleast we will get a small relief on this impact