Service tax

Sir, 

Such service fall under Reverse Charges Mechanism and 100% liability who is received the service i.e. Insurance Company. In this case no liability has to pay service tax by you.

Further if having observation forward the same.

 

yes mutual fund advisor is a service provider... prior to amendment notification in april 2016 such services were covered under reverse charge mechanism..where by advisor need not pay any service tax, they mutual fund companies used to pay it... bt now after the amendment in april 2016 such services are covered under forward charge thereby making advisors liable to pay service tax and claim small service provider exemption

W.e.f. April 1, 2016, Service Tax liability on MF distribution commission has been shifted from reverse charge to forward charge mechanism i.e. Mutual Fund distributor is now liable to pay service tax on commission to the Government of India.

Yes, the distributor has an option to claim service tax exemption upto Rs. 10 Lakhs of the aggregate value of taxable service in a Financial Year, subject to prescribed conditions.

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services of aggregate value not exceeding Ten lakh* rupees in any financial year from the whole of the service tax leviable thereon under section 66 of the said Finance Act:

The Below Table provides more clarity on the Service Tax Applicability:

 

Aggregate value of Taxable Services provided		Service Tax applicability
Preceding Financial Year	Current Financial year
Less or equal to 10 lacs	Less or equal to 10 lacs	No service tax
Less or equal to 10 lacs	More than 10 lacs	Service tax applicable after 10 lacs
More than 10 lacs	More than 10 lacs	Service tax applicable from Rupee one. No exemption available
	Less or equal to 10 lacs

 

there are certain prescribed conditions under notification 33/2012 dated 20-06-2012, broadly;
 The aggregate value of taxable services should not exceed Rs. 10 lakhs in the preceding financial year;
 No CENVAT credit should be claimed till the time of exemption;.
 Taxable services provided from all premises should be aggregated