Service tax on mutual fund distribution commissions: commission income taxable as business auxiliary services, exemption for goods agents inapplicable. Commission income from distribution and marketing of mutual fund units is characterised as services of a commission agent falling within Business Auxiliary Services, and therefore is liable to service tax. The exemption applicable to commission agents dealing in sale or purchase of goods does not extend to mutual fund distribution, so the goods-related exemption notification is inapplicable.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Service tax on mutual fund distribution commissions: commission income taxable as business auxiliary services, exemption for goods agents inapplicable.
Commission income from distribution and marketing of mutual fund units is characterised as services of a commission agent falling within Business Auxiliary Services, and therefore is liable to service tax. The exemption applicable to commission agents dealing in sale or purchase of goods does not extend to mutual fund distribution, so the goods-related exemption notification is inapplicable.
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