MF Distributors - Service Tax Clarification.

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  1. Indrajeet Mohile

    Indrajeet Mohile New Member

    Dear All,

    As per the new ruling, MF distributors / IFAs have to now pay the Service tax on their own (effective 1st April, 2016). Until last FY, the AMCs would deduct the ST on their behalf and deposit the same with the Govt.

    However, need following clarifications please :

    If my gross total income from commissions (earned from AMCs towards MF product distribution) + other consultancy services rendered, does NOT exceed Rs. 9 lakhs p.a. then :

    1...Do I still need to register for a Service Tax Number ?

    2...Do I still need to raise a invoice in favour of the AMC detailing the break up of the commission earned (ST, Swach Bharat Cess, Krishi Kalyan Cess etc. ) ?

    3...Do I have to file a service tax return ?
  2. Neesha Bhatia

    Neesha Bhatia New Member

    (1). In terms of Section 69 of the Finance Act, 1994 (Chapter V) read with rule 4 of the Service Tax Rules, 1994 Every person who has provided a taxable service of value exceeding Rs. 9 lakhs, in the preceding financial year, is required to register with the Central Excise or Service Tax office having jurisdiction over the premises or office of such service provider

    (2).Company can raise an invoice without giving the details break up the break up of the commission earned (ST, Swach Bharat Cess, Krishi Kalyan Cess)

    (3). If the aggregate value of service does not exceed 10 lakh in a financial year the service provider can claim the benefit of the service tax exemption he won’t be required to pay any service tax on such services. Although service tax is required to be paid only when the aggregate value of service provided exceed 10 Lakhs in a financial

    (4) Company need not file return under service tax
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