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,
CAclubindia
