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There should be debate to find out reasons why industries are not growing, why per capita income of indians are lower than americans, why 96% INDIANS are not participating in the main activities of economy. My assets are growing @ 20% CAGR bacause I invest 100% of surplus in MUTUAL FUNDS. Mr FM or SEBI Chairman don''t invest in M F . Ministry of Finance , the people in the budget making process must be questions for the negative impact. We should stop educating investors. Direct plan is the biggest ENEMY of MUTUAL fund INDUSTRY.

AT MY GLANCE ALSO IT SHOULD BE BEAR BY INVESTOS ONLY

Full insights of the service tax charged. Since we are the service providers to the Amc and they should pay additional 14% or 16% on the commission then they should have a reverse charge machenism. Since they already charge service tax within the expense ratio of the scheme and this reverse charge machenism goes directly into the pocket of AMCs. We all should urge for a commission plus service tax and then the reverse charge machenism should be applied.

It is understood that each & every friend of our profession is not accepting this injuctice. Now let us start thinking what to do from our community to stop this ST imposition and how. If we are to take the help of law, we should proceed for that. But in such case intrecate programmimg is required. I think now lets start discussion on that.

It''s very ill treatment for Mf advisors or agents if finance minister is smart then he should understand to encourage Mf fraternity to get more business...I think he gets wrong feedback from other industry competitors...I think we are just handful bunch of ,50000advisors.

I also do agree that end users should pay service tax not the intermediaries.Now question is "On what ground it was exempted earlier ?"Same reason should again be considered.I''m still not able to understand why every time we hear adverse news on mutual funds industry.What is their wish i.e. to promote or to discourage MF industry.AMFI should look into these matter seriously.

Imposition of service tax on ifa community is discouraging self employment .People who are solving Govt.problem of unemployment by choosing this profession.Instead rewarding this IFA comunity govt is cutting on their income source. kindly reconsider it.

Commission is Paid by AMC. Fee is paid by Clients. Which amount is to be suffered Service Tax? Let me have your views

SHEER INJUSTICE TO MF DISTRIBUTORS restaurant owners telephone companies owner restaurants owners hosts have no liability to pay service tax IFAS ARE MADE SCAPEGOATS

This is direct attack on IFA commission.

AMC, IFA and INVESTORS are like RESTAURANT OWNER, WAITOR and CONSUMER/GUEST, ever heard a waitor paying service tax. Liability of service tax lies with restaurant owner or consumer/guest.

To the best of my knowledge , service tax is alternate tax in lieu of Exise duty. So its basically the responsibility of the manufacturer,in our case the AMC. In fact , the service tax on the MF services are already being paid by them. Hence , the commissions received from AMC by an IFA is not again chargeable to service tax.How ever , its expense for the AMC , and Income for the IFA, and only Income tax is applicable on IFA''s income. How ever , if an IFA / Distributor is charging any upfront commission to the client , that shall be under the perview of the service tax, that too when it crosses the thresh hold limit of 10 lacs. So friends , let us all wait for the act to be available for us from the official publication , and then rush to these conclusions.

This is injustice with MF Distributors. IFAs, AMCs and AMFI need to strongly put up the case to SEBI and Finance Ministry.

When service tax was introduced on telephone bills, it was simply added to the bill amount and the end user i e the consumer had to pay. The amount received by the telephone company was not affected. Similarly, we request the AMC''s that the amount paid to us should not be affected. Whatever, service tax becomes payable by us, should be paid by the AMC''s and recovered from the investors in whatever way they like. I think this is what the FM intended, as he is expecting that the investor is going to earn so much from his investment (due to his growth oriented budget) that he will not mind paying 14% extra to earn this.

It is the usual practice to make a hard working person the scapegoat. So do the recent service tax. I don''t think mutual fund investments are made to be subject to Service tax. It is not a service. It is investment. If at all the service tax to be levied, it should be on the expenses that AMCs incur. Not on the Distributor''s commission. the paradox is, whenever and wherever a service tax is levied by Govt on Corporates, inturn the corporate would charge the same from the end customer. Let the Govt answer how do the MF distributor can charge the end customer.

It is a puzzle. Why the commission, payable to Distributors of MF, are being taxed twice - once Income Tax and further with Service Tax? It is difficult to understand who the insider has suggested it to our Finance Minister. It think Govt & AMC does not want MF distributors to Grow, So LOW Penetration beyond 15 cities. MF adviser approximate 1 lakh Life Insurance 25 lakhs I think AMC also Sleeping. No Unity among AMC & MF Distributors

It seems to me infuture IFA will demoralised infavor of their profession,why earlier upfront comission abolised now again Service Tax impose, so how the IFA will survive? Kindly consider some benefits for them so that they can realy work for country,s financial soldger

https://www.facebook.com/PMOIndia I have started a thread on PMO page, lets voice our opinion and agitation there. Piyush jain

everytime distributors are scapegoats, lets unite ourselves for this cause,no one to look at the ground realities not even the AMC, actually they are using distributors and distributors always brcoz of their mistakes.

I think no body is there to present our problems. When there is no Service Tax for Insurance distributors why only for MF distributors. I think they do not want Individual distributors to be in the Business.

Sriram K ARN 19262 Sivasri SEBI and government of India. is thinking’s where by the finance advisor only get highest payment or commissions in India. Other are getting very little payment or commissions. For that only SI and Govt put lot check point for them

This is unfair decision of the govt on MF distributors. We are first of all paid very low brokarage. We distributor are paying Professional Tax, Service Tax & Income tax. Please add service tax on all services, like bus service, Train service, Taxi service, Auto service, Transport service, etc etc., Salary of employee is also service. This will be a huge revenue for the govt. But govt have to pay minium Rs. 25000, pension per month for all Indian citizens. In this context we will not bother for our future when govt is having take & give policy.

Let us highlight one more fact about the service tax that when & only 10 Lac is the collection or receivable then only service tax implies, where very few IFA''s qualifies .............So Y v r d sufferer there in. It needs a wider agitation against this nation wide.............Where r d so called IFA associations sleeping on this.

MY EARNINGS FROM MF AT THE MOMENT AROUND RS.400000/ PA .WITH A 4LAC SALARIED PERSON TAX IS NIL BUT I HAVE TO PAY RS 56000/ TAX..IT IS JUST INTOLERABLE .

It is just unfair and should be resented with full force at all levels.

It is a puzzle. Why the commission, payable to Distributors of MF, are being taxed twice - once Income Tax and futher with Service Tax? It is difficult to understand who the insne has suggested it to our Finance Minister.

Just a few days ago bank employees got a gift of 15% hike in salary,7th pay commission is there for Govt. employees. What for us ? are we not plying a good roll to in countries growth ? Once it was imposed earlier , later withdrawn , to increase IFA''s contribution in the market . It is not cleared to me that what this Govt. want , to boost up the industry( MF) or dampen? Thank you Hon.ble Mr F.Minister to convert well to do families to enter in the segment of below poverty line. Oh I can''t think much about this.

what.my comm.

Service. Tax why? I can''t understand that. We are not getting any kind of service. We are in a Nobel profation.

I agree with Mr. Manish Hathi comment about the deduction that is there in the brokerage - 47%, and we have to run our business from the balance commission which is left. So if brokerage is 1% we will get .53% only. Is it justifiable as compared to other business which are there. Even the corporate tax is reduced to 25%, so why are we being made the target. How many Distributors are there in MF Industry 1 lac i suppose and in Insurance - 20 lacs. What is the penetration of this industry - 5%, after this it will go where.?

HAMARI INCOME ME SIDHI 14 % KI KAMI PEHLE SE CLOW BACK, INCOME TAX KYA KAM THE

ACCHHE DIN AANE WALA HAIN! Can anyone point out a single benefit to MF industry. I read somewhere our MF honchos are appreciating the budget. IFA''s & Distributors are left for fend for themselves. Good Luck to all of us.

the union budget 2015 is proposal to impose service tax 14% on the commission on Distributor of MF industry. we like to bring to your kind notice we are getting merge commission and also we have to pay annual fee to AMFI and if the government increase service tax to 14% then we have closed our ARN and do some other activity which fetch more income regards shah

I am unable to understand how & why it done. why the C.A & other professional are left.

This is not clear to me that what type of services did we take ? And for what reason we have to pay service tax. Gov''t should think twice before deducting service tax from commission of mf distributors. In my opinion this is an injustice to the distributors.

very sad,It is step behaviour of finance ministry with mf distributers and also there is no logic of imposing service tax on service provider income,as the distributers income is taxable.

In Union Budget 2015 it is understood that proposal has been given to impose Service Tax @ 14% on the commission on Distributors of MF Industry. But we know that Service tax is not applicable to the service provider and Distributor is service provider.How it can impose on commission on MF distributor.

Dear Finance Minister The Service tax imposed on mutual fund distributors is not justifiable. As our income income is taxable under income tax. We pay service tax on other services likr mobile bils and other services. So this tax is impacting our income by more than 50% of total income. It seems that we will earn just to pay taxes only. First we work for rs 100 and will get only 86 rs. Then we will pay 30% income tax oequak to 26 rs. We will be left with 60rs. Then we will pay our phone bills with 14% service tax. And all the other taxes like excise on petrol . Vat on and others. So please impose just one tax on ourh income eitr income tax or service tax. Like other businesses our income is also business income.and our income should br under income tax only. So Mr Arun Jaitley ji one income should be taxable at one point only. Please modify this ammendment and save the mutual fund distribitors. Please Mr. Arun jaitly ji mutual fund distributors are very less in the country and this

Totally a wrong move . partiality against Mf Distributors as compare to other agency/broking work as here it is irreversible. So must be removed .Issue must be raised to FM collectively. If not reverted AMC has to share and only charged on upfront as it paid for mobilising work,must not charged on trail income. we also need AMC support for strong presentation of our objection

MUTUAL FUND INDUSTRY SHOULD SEND IT''S SUBMISSION AGAINST THIS LAW BEFORE IS PASSED IN PARLIAMENT.

In Union Budget 2015 it is understood that proposal has been given to impose Service Tax @ 14% on the commission on Distributors of MF Industry. But we know that Service tax is not applicable to the service provider and Distributor is service provider.How it can impose on commission on MF distributor.

yehi to acche dino ki shuruaat hai .. tnx respected finance minister for giving us a nice gift at the start of financial year ,,, why not insurance sector is also added,,,,,,,, bias decision ,, difficult for individual IFA,S to pull on ,, as !4pc service tax ,, and Income tax together makes a lot

This is very unjust.No new talent will come in mf distribution business. Even existing distributors will struggle to survive as the evvective tax rate comes to 47.00 % [ 30.90 % income tax + 14.00 service tax + 2.00 % swach bharat cess ].The AMCs should only bear the burden. I have just now written a message on www.pmoindia.gov.in.I request all distributors to send e mail at once to PM.Please all tell him that it is not possible to sell mf''s and our survival is at stake. Banks and National DIstriutors might also be affected in the same way like the IFAs.so they should also raise voice as they are influencial.

It was abbe ration since long which was corrected 3 years back.As usual we are back to square one. Mutual Fund distributors are most gullible lot.

IT IS WRONG BECAUSE MOSTLY IFA NOT EARNED MORE COMISSION WHICH CAN PAY SERVICE TAX 14% SO WE BECAME UNITE AND WE WILL DO REQUEST AND SEND MESSAGE FINANCE MINISTER AND P M.THANKS.

mf investments profit is goes to investers when fund value icreases then he has to pay st.why we have to pay? or amc s have to bare.if distributors are to pay s.tax increase the upfront upto 3%.if not please stop doinng mf business by ifas iam ready to stop and go for insurance if service tax withdrown.

REALLY SAD NEWS FOR US. LET BE UNITED & WRITE MAIL TO PM.14% IS VERY HUGE IT WILL IMPACT BIG ON OUR EARNINGS. THIS GOVT. IS REDUCING TAX ON CORPORATE & FOCUS ON INTERMEDIARIES.

14%SERVICE TAX ON MF DISTRIBUTOR COMMISSION IS NOT SO GOOD IN MUTUAL FUND INDUSTRY.

This is a ridiculous decision by the government.....SEBI, AMFI all look like working for the insurance industry benefits.....a great product with the highest wealth creation and preservation capability and having the highest transparency with daily price discovery has become the least attractive to sell....people like me preferred to work as individual wealth managers rather than banks to give the most honest possible advice to our clients will have to work much harder to get a decent income......

very sad for us. I am ready to help financial or any other.I will come to protest. We should unite at this opportunity otherwise we will not survive.Where are our leaders?

Ache Din Ache Din Ache Din ................. Lekin Shayaad Ache Din Kabhi Nahi aayenge for M F Distibutors because Now Mr Jaitly Add Service Tax on Our Commission and may be from next month will be possible capping on Upfront Or may be given maximum 1 % only. Upfront 1 % Maximum may be good for our industry or good for Investers But 14 % Service Tax is not good thing for MF Industry I humble request to Mr. Jaitly please think about it again.

IT MUST BE FOR MF OR IT CAN BE DEDUCTED AFTER MINIMUM LIMIT

Our taxation will increase by additional 14 %.if some personal tax is in 10% limit it will move to 24 %.Request all to write to yhe Pm in pmindia.gov.in and highlight the issue. Every ifa needs to write. AMC also will have to put up to the finance ministry

hello I am Praveen ,age 32, I have started as career as IFA in June 2014, I left my job cause MF industry looks good to me from IFA perspective, there is a news of capping on upfront commission to 100 bps and now this 14% service tax ...will definitely loose my motivation and earning in selling mutual funds..AMC must come forward to support IFA in sharing ST ...its my request to AMCs and suggestion both

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.

very correct that service tax is payable by the person receiving the service and is charged and deposited by the person giving the service. SO the tax should be charged by the AMC and be paid by the customers. Whatever be the via media.This is how the tax applicability should be there. V as intermediaries between AMC and Clients are unnecessarily being asked to pay tax . If the government wishes to charge 14% as Service tax then They should exempt our balance income received from Mutual fund business from income tax . But it is unfair that from every Rs 100 v earn first v pay 14% as service tax and then out of rs 86 v receive we again pay 30.9% as Income tax. Even the Super rich are being taxed at the rate of 33.90% if their ITR exceeds 1crore But a Mutual Fund advisor is a Sheep that should pay 44.9% to government as TAX. Pls request all to highlight this to all ministers including PM on their twitter .. @arunjaitely is the FMs twitter handle or @arunjaitely#AskYourFM I sthe handle where he has said he will reply to budget queries.

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.

Right from begining, First Direct plan was introduced, it didn''t became successful then they abolished entry load on regular plan also, then talking about banning upfront is going on. now service tax on commission. I don''t know what these people want to do with mutual fund advisors ?

Just writing comments will not solve the problems of IFA, be it upfront commission or Service Tax. We should try to bring to the notice of the authoriites sitting in AC rooms with high salary & perks. Every indutry has union to protest eg Bank officers, even auto drivers get the attention of Govt for their problem.

dream of bad day

The service tax burden of 14% will kill the industry further as the upfront commissions are already being curtailed. I think some kind of mechanism should be there to put it in Customer''s statement directly. Or AMC should charge and settle in expense ratio for the customer. We know that Advisors cannot bill them like stock brokers do hence AMC should intervene and pay on behalf of advisors. AMCs do that liberty to set off the service tax against the expense ratio hence AMC should account it in a manner which allows Financial consultants to get that 14% back into there account. 14% service tax is a huge cost, imagine somebody is making INR 10000 from one AMC and 1400 is deducted on every payout, its like a paycut to a lot of advisors. Either AMC should do something or Government should continue exempt it.

It is totally unfair with Mutual Fund Distributor , for such little compensation and hard work , we all must thanks Pranav da for abolish service tax on our brokerage , I humbly request to Mr. Jaetly to look into the matter abolish service tax on brokerage or rationalize tax l on National Distributor like banks and get large sum on tax

Service Tax in respect of Insurance &Mutual Fund Advisors comes under Reverse Charge I.e., the tax is payable by Service Provider.

I understand the regulators are considering monthly payment of around Rs. 10000/- to Insurance Agents. AMCs should also pay Rs. 10000/- to the Agents so that they can cover such costs. As usual there is no way an IFA can relax for a moment and think about his/her future as someone or the other is out there to oust him/her from this business (service?).

Mutual Fund Distributors are the only category of people whose service tax will be deducted from their income. All others charge this tax to the person to whom the service is provided. This takes us to the question as to whom we are providing services to. Do we, as distributors, provide a service to our clients or to the AMC''s? If this goes through then we distributors could be paying over to the government 44.9% of our income. Absolutely ridiculous. I hope AMFI which regularly collects money from us is listening and is going to do something about it.

Regarding imposition of Service Tax I would like to ask Government that there was definitely some solid reason and logic when the service Tax had been withdrawn from Mutual fund Distributor''s commission. So how did it come with hasty decision . Good and Value Distributor normally pay Income tax @31.60% , now add 14% + Distrbution activity expenditure . At what formula they will survive ?

First of all being an IFA, I am sad to know that there will be a cut in my Commissin Income to the tune of 14 % fron April 2015 onwards. The head of his deduction is Service Tax. For me it is not new as I was paying it earlier as well before the exemption of Mutual Fund Distribution service came. Now I for quite some time and many of my IFA friends are thinking that the service tax is to be paid by the service takers, i.e. Investors in our case, how to make Investors pay for it to us. As there is no system of ours raising bills for Advisory Services, it is supposed that the Investors pay for our services along with the Fund Management fees to the AMC and we get our share from AMC. Now when it is understood and clear that it is the Investors who pay us the Commission and not the AMC, it will be wise to assume that what we are getting is including service tax. And to take it positively, we do not have to file return and pay service tax separately as the AMCs are doing it for us. Finally Acche Din Aa Gaye.

AMC, IFA and investors are just like restaurant owner, waiter and consumer. Since when a waitor is likely or suppose to pay service tax. Either it is born by restaurant or by the consumer. Sudhir singhal

AMC, IFA and investors are just like restaurant owner, waiter and condumer. Since when a waitor is likely or suppose to pay service tax. Either it is born by restaurant or by the consumer.

Earlier, we were subjected to Service Tax. After the reasons behind it''s non- applicability were explained to the previous government, we were spared from the burden of this illogical tax. Service tax is to be recovered from the end users. When most of us distributors can not even recover our fee from the investor, how would we recover service tax?! A distributor falling in the tax bracket of 20%, will now end up coughing 34%! God save the one in the tax slab of 30%. He will now become country''s top tax payer! Bure din aa gaye. :(

In case of MF distribution AMC is the manufacturer n their product is being sold by the Distributor. If brokerage payment to Distributor is being made by manufacturer for the service provided by Distributor my interpretation is that manufacturer in this case AMC has to pay the service tax. If the service of distribution is being availed by the investor then service tax has to b paid by the investor. The wordings are captured accordingly in the budget doc. Against this interpretation plz read the first few lines n respond. ST is a tax to b paid for service. Who is availing the service manufacturer or investor...certainly not the Distributor. ST for pizza delivery is surely not paid by the delivery boy....it is paid by pizza manufacturer or customer. Till 2012 it was deducted from commission at the time of pymt of commission.....then exemption was given in budget 2013.... Now that SEBI has defined the roles of Distributor n Adviser budget stmt reads as it is

We feel that all AMC should consider the issue seriously as percentage wise as well as actual value wise it is very big no.... All the Distributor should take this matter to AMCs who can in turn represent the same..

Its time to opposse two things regarding service tax. First one is to oppose service tax on mf distributors and second and not less important is to oppose the hike of service tax across all the industries because it affects a lot to us as well as the general public which includes ourselves and our esteemed investors also. Lets come togather on a single platform to oppose.

Hi all, As Mr. Ranjan rightly pointed, it should be charged to investors. However in what fashion it will be charged is the big question, I foresee 3-4 scenarios in which it can b either paid to us or deducted from our brokerages. 1. Amc start adjusting st in navs like they do for expense ratio and pay us. 2 it is deducted upfront from investment amount and then paid to us to further pay to gov. 3 we pay it out of our brokerages. In any case, seems government want to raise entry barrier in our industry soo high (with st and upfront cap)that no new entrants are there, also small players and IFA community will phase out in time because of it.

I''m feeling that Govt. picked my pocket twice by increasing petrol and diesel prices and taking back exemption of service tax on brokerage payouts and increasing service tax to 14%. AMCs are not still very clear on this issue. They are saying that we should have given the suggestions to the finance ministry prior to the budget.