Service tax on mutual fund brokerage/commission for fy 16-17

In the budget it has been announced that Service Tax on Mutual Fund commission / brokerage paid to distributor/agent is to be paid by them provided it is more than INR1000000/- annualy. rate applicability 14%

1) If brokerage / commission is 1200000/- than 14% will be applicable on 1200000/- or 200000/-

2) Whether credits of other services can be utilised in setting off the liability arising from mutual fund brokerage / commission.