Service Tax on Mutual Fund Distributors

Dear Friends

We are into wealth management business and distribute various financial products to our customers. One of our product is distribution of Mutual Funds wherein we get commission from Asset Management Companies (AMC) which is covered under Business Auxiliary Service and service tax is to be paid by the Service receiver in this case. AMCs while making payment to us make a deduction of the relevant service tax from our commission and pay net amount to us. We have various other business segment which are all covered under service tax (viz Real Estate Advisory, Home Loans Distribution etc.). Now I would like to know the following in this regard:
1.   Do we need to include the revenue from Mutual Fund distribution in our service tax return?
2.   If yes how can I claim the service tax paid by the service receiver in my service tax return?
3.   As we are not liable to Pay service tax on commission earned on Mutual Fund distribution do we need to make any adjustment in the CENVAT credit accumulated during the period in % to the revenue from Mutual Fund as compared to the total revenue.
4.   As we are a start-up company we have smaller revenues and bigger expenses. Therefore we have huge CENVAT credit sitting in our books which remains utilized at the end of every quarter. How long I can carry forward this CENVAT credit in our books.
5.   As I have a lot of utilized CENVAT credit is it somehow possible to take the advantage of this against our service tax liability from Mutual Fund Commmission Revenue.

Would appreciate if you can share your knowledge on the above points with me.

Regards,

Replies (2)

please give notification/circular on service tax on mutual fund distributer.

Originally posted by :Guest
" please give notification/circular on service tax on mutual fund distributer. "


 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details