AMFI is likely to make a representation before the Central Board of Excise and Custom (CBEC) and SEBI seeking clarity on service tax issue.
The decision was taken at a board meeting held today in Mumbai, said two CEOs familiar with the development.
Phone calls to H N Sinor, CEO, AMFI remained unanswered till the time of writing this piece.
Sources said that the discussion on service tax will continue and no outcome was reached in the board meeting. The CEO of a private sector fund house said that fund houses will wait for official communication from the tax authority before taking any decision. He said that AMFI will make its representation before the Ministry of Finance to seek clarity on service tax issue.
Last week, through a print advertisement, CBEC has clarified that distributors are not liable to pay service tax and fund houses have to bear service tax.
Earlier, M Vinod Kumar, Joint Secretary (Tax Research Unit), through a notification dated February 28, posted on CBEC site stated, “Accordingly, service tax in respect of mutual fund agent and mutual fund distributor services shall be paid by the asset management company or, as the case may be, by the mutual fund receiving such services.” Cafemutual was the first to report this development. Click HERE to read the notification issued by the Department of Revenue, Ministry of Finance.
Reporting by Nishant Patnaik & Ravi Samalad
