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The FAQ from Reliance Amc clearly says if in the financial year 2015-16 the gross income from commission is above rs 10 lacs we have to pay service tax from 2016-17 on all our commission incomes right from start. The AMCs no longer will cut our ST and will not deposit it with the dept. Has to be done by us by raising invoice on the mf. If last yr income below 10 lakhs then we are laible in 2016-17 as and when our income touches 10 lakhs for the amount above the ceiling. From 2017-18 we have to pay from Re 1 of our income.

As far as my knowledge is if the brokerage exceeds ten lakhs the service tax applicable for the excess amount will be deducted by the amcs and will be passed on the converned authorities.

This govt wants money from all possible source and enjoy as politicians. Very sorry to learn that politics has become a source of generating wealth unlimite. But it is India.

I am agree with sunil bhagat st issue is not really sorted

CAN THE IFA AND MUTUAL FUND DISTRIBUTORS BILL THE AMC FOR SERVICE TAX, COLLECT THE SAME FROM THEM AND PAY. I UNDERSTAND IN THE CASE OF DISTRIBUTION OF TAX FREE BONDS AND OTHER BONDS ETC, THE DISTRIBUTOR/ SUB BROKER CAN RAISE A BILL FOR SERVICE TAX AND SHOW PROOF THAT THEY ARE INDEED REGISTERED WITH SERVICE TAX AUTHORITIES AND THE MAIN BROKERS PAY THE BROKERAGE AND SERVICE TAX.THEN NO NEED FOR THIS 10 LAC LIMIT. CAN SOMEONE CHECK UP WITH AMC OR HOW THIS ARRANGEMENT WORKS FOR DISTRIBUTORS FOR TAX FREE BOND DISTRIBUTORS ETC. SO MUCH ADDITIONAL INPUT WORK FOR IFAS FOR NOTHING.

sunil sir i agreed with u as u said the same regarding service tax issue . everybody needs money and nobody can''t stop their earnings as per the limit .being a financial advisor eveybody they want to provide financial services to their clients in the mean while they wanted to get commission.so regulator tehy hve to remove the service tax on our earnings.

Amc''s have shifted this burden on us and it is really speaking meaning less to do service tax return filing and follow up with their department for queries raised later also sebi new rule of disclosure of commission paid/gifts given and free trips etc to distributors to be reflected in mutual fund statement will create another issue with clients that his money growth is being enjoyed by the distributors.

As per my sugession IFAs should fight for the service tax extra from the AMCs. This is the correct method of collecting services tax Service tax is collected in 2 ways 1 is collected by service providers. In 1st method service tax is added in service charges 2 is collected by clients to whome services are provided. In 2nd method the service tax is deducted from the service charges. Earlier IFAs were in 2nd category at that time deduction was justified but now IFAs are in 1st category so service tax should be added to your bill it should not be deducted.

Service tax cannot be paid twice. I think service tax is being deducted from our commission by the AMCs. In that case we have to get a certificate from Amc that necessary service tax is deducted. so that even if you have not filed any return there will not be any liability. As a small enterprenuer we are getting commission and we are unable to keep all these records to whom we have served and raising of invoice etc. the procedure itself is very lengthy and we should express our dissatisfaction against any such compulsion of registration

WAIT FOR GOOD NEWS THAT THERE IS NO SERVICE TAX FOR IFA S . AS A IFA I DONT HAVE REGULAR OPPORTUNITY TO EARN BECAUSE SOME OPTIONS AND AWARNESS FOR DIRECT CHANNELS ARE COMING TO CUSTOMERS IN SUCH A TOUGH SITUATIONS WE ARE GETTING BUSINESS THE INCOME VERY MINOR IN THAT ONE SERVICE TAX IS CHARGING AGAIN NORMAL TAX IS CHARGING IF WE GET ONE RUPEE INCOME AND I AM PAYING 37P TAXES .IF It CONTINUES THE SAME NO IFA IS SHOWN INTEREST TO DO BUSINESS SMALL IFA S WILL SEARCH FOR NEW OPTIONS.PLEASE PLEASE REMOVE SERVICE TAX FOR IFA S

YES SIR--ITS PITY THAT GOVT HAS NOT RESOLVED OUR MAIN PROBLEM OF SERVICE TAX..ITS NOT THE Q OF 10 LAC OR SO..BECAUSE GOVT MAY REDUCE THE CEILING NEXT TIME TO 7 LAS AND THEN 5 LAC..MAIN Q IS WHETHER WE SHOULD BE TAX FOR THIS OR NOT..AND IF INSURANCE AGENT IS NOT BEING TAXED..THEN WHY MF AGENT IS INCLUDED..I THINK GOVT HAS DIVERTED PROBLEM AND AVOIDED THE MAIN ISSUE..SO ALL--PL DO NOT STOP HERE..THE REAL ISSUE IS STILL THERE TO BE RESOLVED..SO FIGHT TO B CONTINUED TILL ALL FIN DISTRUBUTORS ARE TAKEN ALIKE.. SIMILAR TREATMENT..PL..DONOT FIGHT..IF AT ALL ITS TO B PAID BY ALL--THEN THE ARGUMENT FOR PREVIOUS ARRANGEMENT WAS RIGHT IN SENCE OF PROCEDURE ONLY AS DIRECT PAYMENT PROCESS IS VERY CUBERSOME..THERE IS NO INTENTION WHAT SO EVER TO HURT SMALL DISTRIBUTORS AT ALL...UNDERSTAND..PL..AND KEEP FIGHT CONTINUE TILL WE GET JUSTICE..THANKS..

due to new changes in service tax for ifa is not applicable. because IFA is not AGEnt of amc nor service provider and / or service receivor . he is only financial consultant. only we give help to our valuable investor to help amc for their scheme. in individual capacity from MF industries only 5 % is liable to service tax bracket above 10lac income received/ receivable form 01-04-2016 most of AMC''s has not deducted st for commission / trail commission. then why are you taking risk be free from tension of service tax.

SORRY FOR DIFFERENT OPINION, I THINK WE PEOPLE ARE THINKING OF BENEFIT UPTO 10.00 LAC, BUT AS PER MY OPINION NO THRESHOLD LIMIT FOR SMALL SERVICE PROVIDER IS THERE IN CASE OF MUTUAL FUND. AS PER NOTIFICATION NO. 33/2012-ST DATED 20.06.2012, IF YOU ARE PROVIDING SERVICES UNDER/FOR BRAND NO EXEMPTION OF 10.00 LAC ELIGIBLE. MOREOVER IN BUDGET NOTIFICATION IT IS CLEARLY MENTIONED THAT (THE SMALL SUB AGENTS DOWN THE DISTRIBUTION CHAIN WILL STILL BE ELIGIBLE FOR SMALL SERVICE PROVIDER EXEMPTION (THRESHOLD TURNOVER OF RS 10.00 LAC A YEAR)) I DON''T THINK ANYBODY WHO IS DOING BUSINESS UNDER HIS OWN ARN IS ELIGIBLE ONLY IFAS ASSOCIATED WITH NDs LIKE NJ, PRUDENT ETC ARE ELIGIBLE FOR 10.00 LAC LIMIT. ANY CLARIFICATION IS MOST WELCOME AND HIGHLY APPRICIABLE.

Those members who are concerned that I am suggesting that AMCs should continue cutting the service tax and are feeling threatened and even suggesting that it is silly of me to raise this topic PLEASE understand I am the president of the Pondicherry Association which is a part of the United Forum who have worked last year for the removal of service tax. I very well understand the pain of a new IFA who is not at all in the taxable bracket but is made to bear 14.5% service tax. What solution we have got is not really what we wanted. There is no level playing field where the life insurance agents have to bear a very small portion of the ST whereas we have to bear it fully. It is a very good thing that atleast the smaller IFAs are protected. But do you think earning less than a lakh per year is sufficient for running and maintaining our families. I have been in the field since 2002 and have gradually built my AUM. My earnings have been in the range of 5 to 9 lakhs in the last 5 years. Only in 2015-16 my earnings has exceeded 15 lakhs. Instead of fighting with me , please try to find a solution. United we stand and divided we fall. We have a forum where we can constructively work a solution for the problems. Ground reality is that it will not be easy to deal with the dept on individual basis. As and when you reach my situation I would like to see what you would do then.

thank sir

Dear Friends , please make a note that , if the total volume of an IFA''s business inluding Life insurance , Health insurance and any other services for which service tax is applicable , along with MF business crosses 9 lachs in any financial year , that IFA will have to comply with the Service tax regulations. So , by this principle , almost 50 - 80% IFAs must be in service tax net even today! We have to negotiate/represent with regulator to treat advisory fees/distributor commission also on par with other components of TER. For that ,we have to ask regulator to segregate the advisery fees from the overall TER , so that no separate disclosures would be needed and service tax also can be charged to the scheme.

Everyone in our beloved country loves to keep all matters unresolved, half completed,ambiguous,all this to protect one''s position, job and to ensure bureaucracy and bureaucratic mindset of people and nation is maintained. Sometimes SEBI, other times Finance Ministry or Baus in Finance Ministry r at least AMFI and SEBI contribute to the rest of the mess in each and every matter. Hence matters go to tribunal, appellate forum or Court. No wonder CJ of Supreme Court had to shed tears publicly. These tears endorses the fact that we are yet not ripe to live under democracy, do not care for fellow citizens and prefer ti live in the mud of corruption. Though we got Independence in 1947 we are still hopelessly prepared for Democracy.

Till last year I was getting a commission of about Rs 55,000 in a year after deduction of service tax of about Rs 7500. This year assuming that I earn same commission I will be receiving Rs 62500. Why should I not enjoy the full commission? Why should AMC go back to the old system of deducting service tax? It is outright silly of Sunilji to even suggest this. Is he not paying Income Tax? Is he afraid of corrupt Income Tax officials? Like wise he need not be afraid of ST Dept officials. With computeristion he can maintain whatever account books are necessary for paying service tax and for showing to ST officials and stop making retrograde suggetions which will affect FAs getting small commissions.

It seems the govt is trying to net small businessman.some thing happened with jewellers also where only 1% exise duty is imposed .they fought back but there is no umbrella for IFAs as they are divided among themselves. The govt must roll back and give aome relief to mutual fund agents.

It is good that service tax is not being deducted as AMC is never aware of commission being earned by individual IFA''s.Nearly 90% of IFA''s earn less than Rs.10.00 Lacs as commission and they were unnecessary being subject to service tax deduction from commission. Very few earn more than Rs.10 lacs per annum & mostly such FA''s are in the corporate mould. If an FA is earning more than Rs.10 lacs, then there is no harm is taking ST no. & engaging some professional to complete the formalities.

Definitely it will be a tough task to file a return to ST department individually. As suggested by Mr.Bhagath AMC can deduct and pay ST where the commision exceeds Rs 10 Lacs. Otherwise Wife and Children''s of IFA will emerge as another IFA.

Send service tax Rules &Regulations

Don''t make it complicated and more work to all including Government employees.

I fully agree with Mr Bharat it was much better for us that the AMC''s were deducting service tax. It will be a additional burden for us to pay tax every quarter and deal with ST dept