Service Tax on Mutual Fund

[Guest]

Dear sir / Ma'am

there is exemption available to the Mutual Fund Agents or Distributors under mega exemption and what about Mutual Fund,

Are they exempt from service or there is any logic behind the exemption to the Mutual Fund.

if there is any proviso or notification or circular regarding the taxability of Mutual Fund, then please let me know.

Thanking you.

[Rama Krishana]

W.e.f. 1.4.2015 the exemption as above has been withdrawn. See Clarification dated 1.3.2015.

Regarding Taxability, under the scope of negative list era, all services are taxable unless specifically excluded by way of negative list, exemptions etc.

AI Summary

Service tax exemption withdrawal for mutual fund agents and distributors effective, altering taxability under negative-list principles. Exemption previously available to mutual fund agents and distributors under the mega exemption was withdrawn with effect from 1 April 2015, per a clarification dated 1 March 2015. Under the negative-list service tax regime, services are taxable unless expressly excluded by the negative list or by specific exemptions, so mutual fund services and intermediary services are taxable unless a specific exclusion or exemption applies.