GST on Mutual Fund Agent

[SUBRATA RAY]

What will tax incidence of mutual fund agent after crossing threshold limit whether tax will be charged by forward mechanism or tax will be levied by RCM by recipient company

[Amit Agrawal]

Services by mutual fund agents are not under reverse charge mechanism.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Alkesh Jani]

Shri

In agreement with the views expressed by expert Shri Amitji, I wish to add that the service of mutual fund agent is classifiable under HSN Code 997152: Brokerage and related securities and commodities services including commodity exchange services and includes services of acting as a selling agent of units, shares or other interests in a mutual (investment) fund.

In view of above, tax is payable by the person acting as an agent, if threshold limit is crossed.

Thanks

[Padmanathan KV]

Agreed with the views of experts. Mutual Fund Agent will have to get registered and pay GST by forward charge.

AI Summary

GST on mutual fund agent: agent must register and charge GST under forward mechanism once threshold is crossed. Services by mutual fund agents are not subject to the reverse charge mechanism and are classifiable as brokerage and related securities services; when the agent crosses the registration threshold the agent must obtain GST registration and charge and remit GST under the forward charge mechanism, placing tax obligation on the agent as supplier rather than on the recipient.