SEBI and industry officials are still in discussion
on the implementation.
Government has recently issued a negative list of the services which are not
supposed to pay service tax. Since exit load is not on the negative list, SEBI
and MF industry officials are in discussion on how to implement the service
regulator is still in a discussion with AMCs on how to implement the service
tax on exit load. We have yet to reach any concrete decision,” said Vijai Mantri, MD & CEO of
Pramerica Mutual Fund.
are three types of service tax implemented on the mutual fund industry. One on
asset management, other on brokerage paid to the distributors and now on exit
load. So far, AMCs were charging service tax on asset management to investors though
brokerage is exempted from service tax.
The new tax which will be added is the service tax on exit load.
new tax will impact investor returns because they might have to pay additional
12.36 percent as service tax on exit load.
tax will not be imposed on exit load until SEBI drafts a clear process of