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    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund related questions. So write in to us at newsdesk@cafemutual.com
    ‘There is no need to pay GST on insurance commission in most cases’
    Ask us: Mostly, MFDs need not pay GST on income earned from insurance policies as insurers deduct GST on gross commission.
    by Nishant Patnaik May 11, 2022
    ‘MFDs working with NDs cannot avail Rs.20 lakh GST exemption’
    Ask us: MFDs working with NDs and earning over Rs.20 lakh will have to obtain GST registration.
    by Nishant Patnaik Mar 21, 2022
    ‘There is no TDS on mutual fund commission’
    Ask us: Fund houses disburse you commission, which is inclusive of GST.
    by Nishant Patnaik Mar 4, 2022
    Should investors switch to low-cost mutual funds?
    Posted on Jan 21, 2022
    ‘Agents can use words like retirement coach if such a usage is linked to an insurance policy’
    Ask us: MFDs cannot use words like consultant or coach to promote mutual fund distribution business.
    by Nishant Patnaik Dec 29, 2021
    ‘MFDs can use nomenclatures like wealth and money in their company name’
    Ask us: However, MFDs cannot use nomenclatures like wealth management, money manager or financial planners in their individual/company name.
    by Nishant Patnaik Dec 15, 2021
    ‘AUM transfer: Trail commission of new distributor remains unchanged in most cases’
    Ask us: Since AMFI norms say that assets can only be transferred to valid ARN, you will have to first ensure that the new ARN is KYD complaint.
    by Nishant Patnaik Dec 8, 2021
    ‘You can either transfer entire assets to NDs or do incremental business with them’
    Ask us: Trail commission rate would be lower of commission on old ARN and new ARN.
    by Nishant Patnaik Dec 1, 2021
    ‘First year GST is applicable on incremental income and not on entire commission income’
    MFDs who obtain their GST for the first time will have to pay GST only on income made post Rs.20 lakh in the first year.
    by Nishant Patnaik Nov 9, 2021
    Commission earned on insurance policies are subject to GST from Re.1
    Insurance companies follow reverse charge mechanism on commission income of up to Rs.20 lakh. Simply put, insurance companies pay GST on your behalf to the government.
    by Nishant Patnaik Oct 21, 2021
    ‘MFDs have to pay two types of taxes on their earnings - GST and income tax’
    Currently, MFDs pay income tax on net income i.e. income earned after deducting GST and business expenses.
    by Nishant Patnaik Oct 20, 2021
    ‘MFDs reaching Rs.20 lakh income threshold will have to obtain GST registration within 30 days’
    Ask us: Maharashtra MFDs earning between Rs.20 lakh and Rs.50 lakh can simultaneously apply for GST Composition Scheme to avail benefits of lower GST rates.
    by Nishant Patnaik Sep 2, 2021
    ‘MF transaction tagging for B30 incentives depends on PIN and not city’
    Ask us: MFDs have to ensure that the pin codes given in MF folios match with those in the KYC form.
    by Nishant Patnaik Aug 3, 2021
    ‘MFDs/RIAs can distribute insurance policies and charge commission’
    Ask Us: There is no regulation which stops MFDs from selling other financial products.
    by Nishant Patnaik Jul 23, 2021
    ‘MFDs can claim withheld commission if delay in DSC submission is due to covid’
    Ask us: AMFI is likely to give relaxation to distributors if they fail to submit their DSC on or before due date due to valid reasons.
    by Nishant Patnaik Jun 24, 2021