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Sir this is totally unlawful.

Yes, GST wrong implementation by AMCs as it is the liability of amc as we are service provider and amc is liable to pay gst amount along with brokerage.

100% agree with you.AMC should add GST on brokerages and paid to us.

KYAA HAME GST KE AGAINST AANDOLAN KARNAA CHAAHIYE ?

Its wrong practice imposed on IFA by AMCs.We must protect .

Guys, Its high time to fill case against AMC to reverse its decesion. We have to get together for further action.

Dear All, My friend is a Airtel distribution, he got the payout of 10000/- but he received the payout of 11800/- As 1800/- is a 18%GST which he has to fill. If we have to get GST no we will fill this instance of getting 18 % from AMC .AMC is charging 18%GST.

You are very right Sir.We the small distributor really don"t understand why we are being forced to pay 18% GST. Both the INSURANCE sectors (LIFE & GENERAL) agents, Postal & Bank agents are not being forced for the same though they are also intermediaries like us.The AUTHORITY / Decision makers should think deeply once again about it as it is directly connected with our bread and butter.It is really undemocratic, unfair, partial,injustice,intensional................................ for us.

AMCs are exploiting the GST law. Thay are interpreting the law in their own benefit. AMFI is just a puppet body of AMCs only. So AMFI is siding with AMCs. The solution to this is that IFAs must register with GST, but they must be allowed to raise invoice to AMCs adding 18% GST on the payable amount.

It is very true that GST is to be paid by the enduser. In mutual Fund Industry in my opion the ENDUSER is the investor who has to bear the GST on services provided to them. So the GST is to be charge to the scheme and paid by the AMC.

Very true presentation.Sebi,finance ministry should take necessary move in this issue.

i guess mr parik is right. no AMCs are taking it as a serious issue and putting pressure on ifa to go the mile and do the due process at his own.

In my view GST to be borne by AMC. My mutual fund income per ANAM only ranging Rs.100000/- and below one lake , which is lying the limit below 2000000/- So there is no necessity to register in GST As per law. Then why deducting GST from my low income from my mutual fund commission for Rs.100000/- GST is Rs. 18000/- . It has to be considered by Government and SEBI and AMFII. Please reconsider to register GST for Those who are having small income by way of commission earned in mutual funds.

Dear all, I think debeting in this forum will not solve the problem. I believe that policy makers know everything what we are discussing here. In the cases of service tax imposition, the same was imposed on IFAs bluntly in the initial stage. Later on it was revised. We are really helpless. We really dont know where to go to get justice. We all are the victim of the blind rule and policy which are made to provide justice but being misused by strong community for their benefit and being supported by policy makers like Dhritarashtra. If you have any sugession please share so that this type of foul game playing can be restricted.

ABHIJITJI, you have put it right, clear and straight. AMCs availing the service should pay for it as also bear the service tax on it. Look what is the case in phone charge, the user of service is billed inclusive of the tax to be paid to the govt. So far an undue and unjustifiable burden of service tax was shifted to the hapless / unorganised distributor community and now it is an attempt again to perpetuate it. Let us strive for by joining whatever force we can , that AMCs see the things in right perspective and do the needful correction. Thanks Abhijitji, for your point ofview,

Financial services is under the purview of GST ie Life insurance , Health insurance Mutual funds etc. I have been selling these too where the Service tax is being levied till date to the end user ie the client . How come people with vested interests are conveniently misinterpreting the law when the whole world knows that the this tax is a liability of the end user, which has been a precedent till now. IFAS at large are already being subjected to a great amount of trauma with the new regulations that some vested interests are trying to bring in. I am already feeling intimidated everyday as i have several apprehensions for which i am yet to seek solutions" live and let live " please .

it islogicaly perfect

Dear Friends, Earlier also, Service tax was made applicable to all and subsequently restricted to income above 10 Lakhs. Now they say its applicable to all irrespective of income level. IN both the scenarios this LEVY is NOT APPLICABLE to US. Lets understand clearly that AMCs are not paying us for the service given but for the business generated by us for them through our clients. So, its commission income on business generated. Hence, if at all any tax is applicale it should be INCOME TAX by way of TDS. SO, they should deduct TDS @10% if income exceeds 20k in a financial year so that we can at-least claim refund or set off. We need to push for this rather than debating who should bear GST .

I agree with your point of view, the matter must be taken with finance ministry if amcs keep on defining gst at their own way...

IN ALL OTHER CASES THE END USER BEARS THE GST, PHONE BILLS, ISSUE OF TICKETS,NEFT TRANSFERS,CHARGES AT BANKS, POLICY ISSUANCE ETC. WHY IN MUTUAL FUNDS, THE IFA OR BROKERS THE FACILITATOR FOR AMCS AND LINK FOR CLIENTS TO BEAR ,NOBODY IS WILLING TO ANSWER AND SOLVE THIS QUESTION. STOCK BROKERS ARE REIMBURSING GST TO BROKERS, HDFC DEPOSITS ARE PAYING GST SEPARATELY TO BROKERS. ONLY MUTUAL FUNDS WANT TO TAKE GST FROM IFA"S. HOPE OUR LEADING ASSOCIATIONS LIKE "FIFA" ASK MFRT, IFA GALAXY WILL DO SOMETHING ABOUT THIS.

If distributor registered for GST even if he has income below 20 lakh.In such scenario he has to pay GST on other income also(If he has any other income).Take an example if a distributor having brokekage income of 3 lakh & having rental income of 5 lakh.If he registered for GST then he has to pay GST on the total Income of 8 lakh.

Commissions paid by AMC are inclusive of all taxes. AMC is not liable to pay tax over & above commissions. Kindly refer to your brokerage structure for the same. Secondly, if AMCs are eligible for getting input tax credit after deducting GST, then they must pass such benefit by increasing commissions of the Distributors.

i fully concur with the above. the representative authority is not clear of the understanding. while the AMC /DISTRIBUTORS are scot free of all abn sundry, not even one distributor is making efforts and creating a chaotic situation. i feel that those in above tax brackets may end up paying more 50% of the earning in tax form. while even a professional is not paying more that 30% mandated. the inequality is multifold. this needs serious debate-sadbahavana

I agree with Mr Parik, GST should be paid by end user. In service tax regime No Service tax till the income is above ?10 Lakh p.a. & No service tax was deducted then if now threshold is ?20 lakh then AMC should not deduct any GST & if its in GST law then All stakeholders should request FM for removing this provision of deduction of GST @18% from Distributor Brokerage upto ? 20 Lakh income p.a. In all Major Services / Product Industry GST is pass on to end user then same should be applicable here.

The AMCs are making fool out of distributors - they are reducing the commision payout in name of GST and at the same time they will take input credits for the GST that they are paying on rents, electricity, services etc etc - so their profitability will rock at distributor expense Even for below 20 Lakh of turnover - on RCM the AMC will pay the GST but but but ---- The AMC are also the service providers as well as giver for such distributors - so they will get 100 % GST input credit. - so effectively reducing the payout to the distributors

I also agree that GST should be borne by end user. There is no question whether One`s income is in or above 20Lakhs.

Agree..GST should be Over and above Brokerage Rate. AMC need to realize the same. Or Atleast, they should Take the Local GST, So Small Distributor are not burdened by GST. Fact is all The AMC will take LOCAL GST number for their local payment but then they will not make payment to us from there because our agreement is with Center Branch. So, They should immediately Revise and should do the necessary to accommodate atleast smaller distributor.

they can and they will deduct the GST of 18%. but registration is not compulsory for income upto 20 lacs. its the distributors decision whether to register or not below 20 lacs.