Your Voice

Unite for Reducing Tax on Commission

Date : 10-09-2017
Name: ABHIJIT PARIK ARN NO :87541
Firm Name : INDEPENDENT DISTRIBUTOR City : AURANGABAD


 

GST has been Implemented Across theCorners of the Country. It’s a Law with which we all have to comply in its true sense.

In 21st Meeting of GST Council held on 9th September, 2017at Hyderabad, rates for about 40 items have been slashed. Since GST Council has  appointed 5 Member Committee to Study GSTN Issues, there is a Hope for us to put up the issue before GST Council.

Taking the clue can we as a Distributor Fraternity Unite and Request Slashing Rates on Mutual Fund Distribution Commission. 18% Rate of Tax on Commission is Huge, as there is no Fraternity paying 18% Tax on Income(Commission). Further we are liable to Pay Income Tax as per respective slabs applicable.

·     Interestingly GST Council in its 21st Meeting held Yesterday has Exempted some kind of Handicrafts & Job workers from Registration till 20 Lacs – “Even For Interstate Supplies

·    We as Mutual Fund Distributors can use this same Criteria to put forward issue of our Entire Fraternity

·      Else request to LevyTax @ 1%as Composition Tax Payers are levied, since Blanket 18 % is Heavy rate of Tax.

Since Government along with GST Council  is into Adaptive Mode, trying to listen difficulties of Various Industries and Sectors, if we put up our stand withFull-fledge Effort we may succeed.

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"We trust that you will avoid using harsh language and will refrain from making unsubstantiated allegations against individuals and firms. Your constructive feedback and opinions are very valuable to all of us in the industry. "

Comments Posted
Rajendra N Bartake ARN NO :ARN-121856 Valsad, 20 Sep 2017

I cant understand a new comer like me having very little commission for the year has to pay GST.Also the gst rate is very very high i.e. 18%.AMCs are Having our commision data then why Govt. system can not club the data and compute itself for our liability and charge Gst? Also there no system of return for getting back excess GST which has been deducted.Absolutely disappointed and am feeling being robbed.Request to set proper system and also for lowest GST if applicable.

Shashikant B ARN NO :86221 Hyderabad, 19 Sep 2017

Since the end user is not bearing the GST cost, an option 1% under composition should be provided to MF distributors,

TULSI GOVINDRAM DANDWANI ARN NO :124426 JUNAGADH, 14 Sep 2017

NO GST OR LOW GST ON COMMISSION

Yezdi Minocher Daruvala ARN NO :15719 Nagpur, 14 Sep 2017

Yes Abhijit I am completely with you on this. Moreover IFA should be completely exempt from the ambit of GST.

Mulchand Manakchand Jain ARN NO :24601 Vapi, 14 Sep 2017

If a new IFA starts its business and earns only a Lakh Rs.,then also he need have to take GST no..If it is one country one taxes then there should be some system that one need have to pay GST till 20 Lakh.

SAMEER K. AMRUT ARN NO :ARN-67994 MUMBAI, 13 Sep 2017

I agree for Levy Tax @ 1% as Composition Tax Payers are levied, since Blanket 18% is Heavy rate of Tax for distributors.

SHANTHI RAJKUMAR ARN NO :50638 COIMBATORE, 13 Sep 2017

The threshold limit of Rs. 20 lakhs irrespective of the place must be applicable for MF distributors also. The rate is too high and the filing of returns is also cumbersome and burdensome for small distributors.

ADITYA CHAUHAN ARN NO :103138 HARDOI, 13 Sep 2017

It is totally illogical that we pay 18% GST on our earnings & same time we have to pay income tax as per our slabs on the same earnings... This is totally Stupidity...this should be withdrawn with immediate effect....

Diksha dubey ARN NO :124792 Varanasi, 12 Sep 2017

Gst is not a good idea when you implement it on ARN which is not earn for livelihood. Also this is double taxation. Tihs is a rubbish idea. Thanks for support

Isidorio Fernandes ARN NO :114054 MUMBAI, 12 Sep 2017

Yes, we would definitely like a reduced GST, as it is exhorbitant

Mukesh Mehrotra ARN NO :ARN-104177 Jaipur, 12 Sep 2017

The criterion of 20 Lac p.a. income should be applicable to MF Distributors also,irrespective of place . It is really a disincentive to the Distributor as the Commission on MF distribution is very low and it is further reduced by GST and Income Tax . The implement ion of GST may restrain small Distributors to work .

PINAKI RANJAN KUNDU ARN NO :58176 KOLKATA, 12 Sep 2017

I believe, if our problem can be placed in front of security council, this can be sorted out. The same thing happen in the regime of service tax and that has been given exemption upto 10 lacs to the small IFAs. It is really painful to the small IFA like us whose commission income is less that 4 lac p.a.

MEENU KWATRA ARN NO :9987 amritsar, 12 Sep 2017

GST RATES ARE VERY HIGH. IT MUST BE EXEMPTED FOR SMALL DISTRIBUTOR

Jayraj J. Dabhi ARN NO :ARN-116256 Rajkot, 12 Sep 2017

As per insurance distributor commission system, there is GST bear by the customer, not bear by distributor because of service received by customer in same category, so same thing should be apply in mutual fund distributor.

Narayan Kini ARN NO :ARN115844 Bangalore, 12 Sep 2017

Rs 20 lacs exemption is available in most States. But not extended to inter state transaction. AMCs are not bothered as it is not affecting them. Though they have branch offices in every state, they could have extended it as a intra state transaction and passed on the benefit to IFAs by booking brokerage in respective States. All AMCs are also at the mercy of their Regisrars. To represent distributors, there is no single powerful Body. AMFI is a body for AMCs. SEBI is not Distributors. May be have to start a e signature campaign to reach to Finance Minister.

Avinash K ARN NO :ARN-92113/AVINASH K Satara, 12 Sep 2017

Mr. A Ghosh has exactly described the problem. GST should be totally waived off for Mutual Fund distributors because it is not a turnover of the distributor but an income for a distributor. Thus GST is acting as an Income Tax for the distributor and at the end of the financial year we are supposed to file our income tax. Does this government think that mutual fund distributors are stupid to be double taxed? No distributor should be charged a single Rupee as GST for rendering valuable services to his/her client. This is what I feel. #NoGSTForMFDistributor

V Surendran ARN NO :0327 Nilambur, 11 Sep 2017

Please unite and bring the problem faced by some of the poor distributers like me to the notice of the GST council

sanju lalwani ARN NO :ARN 106929 mumbai, 11 Sep 2017

I HAVE JUST STARTED MUTUAL FUND BUZ WITH AN INCOME OF RS 300000 P.A. THERE ARE SO MANY COMPLIANCES IN GST. THEY SHOULD CHARGE FLAT RATE 5% AND REGISTRATION SHOULD NOT BE COMPULOSRY UPTO 15 LACS I FEEL

Narendra Shriram Metkar ARN NO :42157 Jalgaon., 11 Sep 2017

GST on commession earned by MF distributors is to be NIL.

A.Ghosh ARN NO :67143 Kolkata, 11 Sep 2017

We are service providers. Asking service providers to pay GST from their income which they cannot claim from their service receipients (AMCs in our case) is outright rediculous and defeats the purpose of GST. It is like asking Airtel or a Maruti Service Centre to raise bills after "deducting" GST (from their stipulated rate chart) and then again add that GST in their bills. This would mean the GST would be paid from their stipulated service charges and not billed "extra" to their customers. This is exactly what the AMCs are forcing us to do. Our fight, therefore, should not be about reduction of the GST percentage. Our fight should be against paying GST from our stipulated commission earnings. We must be allowed to raise our invoices as stipulated commission earnings "plus" GST and the AMCs must pay the "total" amount to us.

S MURALI ARN NO :ARN code 89324 MADRAS, 11 Sep 2017

Sensible this I have thinking tight from the time service tax was levied. Atleast now its recognised. Yes we shall unite to bring to the authorities concerned in the most acceptable manner. All the very best. Regards S MURALI

Sumedha K sahasrabudhe ARN NO :ARN-108960 Pune, 11 Sep 2017

Request to Govt.not to exempt GST registration up to 20 Lakhs “Even For Interstate Supplies”. I am very small distributor earning a brokerage of Rs.2.5 Lakhs yearly.it is not possible to maintain GST record also I can not afford to hire services of GST consultant.So I here by request the Cent Govt to consider the above submersion sympathetically S.K.sahasrabudhe

AJIT JOGLEKAR ARN NO :36987 Nashik, 11 Sep 2017

The all inclusive structure which is drafted with a dice rolled in favor of the buyer of services.No where have been any such instance of lop sided agreements. This is the basic origin of the excessive incidence of taxation.Whether or not someone is paying under forward charge otlr under reverse charge the incidence remains on the Supplier of services which is absurd.Is it not unfair that the supplier of services bears the GST but the purchaser enjoys the Input Credit for the same without actually having to pay for it.There was no service tax upto 10 lacs income from brokerages till 30th June.what changed drastically for distributors is actually a blessing in disguise for the AMCs. If this anomaly is not possible to be rectified we should get at least something like a composite scheme where we wont be eligible ro cliam input credits.But the impact costs of GST will get reduced. My two cents.

Subramaniam ARN NO :116161 Chennai, 11 Sep 2017

I support this initiative. Lets fight together for reducing the rates.

FINWIZ ARN NO :ARN-119491 Pune, 11 Sep 2017

Yes I am agree to all of you we have raise our voice for implementing 18%GST on us. Now this is time to we are come together and protest against this loot.

krushna Chandra Satapathy ARN NO :ARN-103586 bhubaneswar, 11 Sep 2017

I completly support the above points. We must before the gst council. 1. Exemption limit should be applicable to all states. Wherever the HO of AMC may be. 2. Rate of GST should be as low as possible. Because we are paying Income Tax after this, as per the applicable slabs We must draw the attention of PM, FM and GST council. Thanks.

manoj kumar sharma ARN NO :89725 kanpur, 11 Sep 2017

Really it is horrible for distributor who have very less income they will pay GST 18% and then Incometax how they wiill survive new person will not work in this situation this should look by our govt.

KAMLESH CHAND SADAWAT ARN NO :ARN1236 JODHPUR, 11 Sep 2017

I think our aim should be to eliminate GST rather than reducing it . GST is now direct tax on us . It is actually indirect tax , and should have been charged from end user i. e . investor . In India we are the only exception who are paying GST as direct tax . There has been mistake some where in deciding to Levy GST on us , and same need to be corrected .

Suman Shah ARN NO :114117 Ahmedabad , 11 Sep 2017

Pl bring down Service Tax on Mutual Fund Comisson Pl bring down to 5 percent only from present 18 percent

Parmanand Thakur ARN NO :109730 Jamshedpur, 11 Sep 2017

Please wave small distributor to gst in previous policy as 10 lakh below commission not pay to service tax.

RAJESH KHUBCHANDANI ARN NO :15121 satna, 11 Sep 2017

Sir, I am totally with you. The 18% for Mutual Fund Distributor is unjustified. We should raise our voice against this. The others LIC, GIC POST OFFICE agents are free from GST .

AARUSHI KUMAT ARN NO :75060 UDAIPUR, 11 Sep 2017

This is very high and should be reduced to 5%

atul shah ARN NO :0225 Ahmedabad, 11 Sep 2017

18% GST IS TOO HIGH-- On Rs:- 100/- commission, Rs:- 18/- goes out straight AS GST--- From remaining Rs:- 82/-, IFA incurrs expenses (more than Rs:- 50/-) ** Income tax presumptive tax structure allows 50% OF GROSS commisiion as expenses & relieves broker from maintaining books of a/c--- If more than 50% expenses are to be claimed, broker has to support higher expenses claim by keeping books-- ( This is enough proof that 50%+ expenses are reality--) Thus IFA is left with less than Rs:- 32/- out of Rs:- 100/- -- & shall pay applicable income tax on it-- -- NET NET-- GOVT BECOMES 50%+ PARTENER AS GOVTs SHARE MAY EXCEED NET PROFIT OF BROKER--- In case of start up new offices - govt shall collect 18% GST, & BROKER MAY BE AT LOSS-- Thus GOVT shares only profit & that is more than brokers net profit-- THUS, GST 18% & OTHER TAXES COMBINED ARE TOO HIGH BURDEN ON BROKER---

SIBARAM PRADHAN ARN NO :ARN-51623 PURI, 11 Sep 2017

Sir, I am totally with you. The 18% for Mutual Fund Distributor is unjustified. We should raise our voice against this. The others LIC, GIC agents are paying TDS only, while we have to pay 18% GST. Why? SEBI & AMFI should rethink regarding this and GST on Mutual Fund Commissions should be brought down to a marginal level.

vikas kumar ARN NO :70009 Patna, 11 Sep 2017

I just request to govt for abolish gst from if. It will be also fruitful for country because new people will also take interest to work as a if and will be supportive to reduce unemployment.

H Srikanth Rao ARN NO :ARN-82058 Manipal, 11 Sep 2017

Yes, GST should not be there for the Mutual Fund Distributor. We are all getting very small amount of income for so many paper works. From that portation paying GST & Income tax also. Govt must look in to this.

Rakesh kumar ARN NO :47146 Gurgaon, 11 Sep 2017

True. Its too high

DVLSV PRASAD ARN NO :62398 ONGOLE, 11 Sep 2017

I STRONGLY OPPOISING GST 18% ON B15 CITIES DISTRIBUTOR.WE ARE READY TO PAY 5%.FOR THIS WEWILL UNITEDLY REPRESENT THE GST COUNCIL.

Suman Abbi ARN NO :ARN-2602 Delhi, 11 Sep 2017

Yes, we must unite and take up the matter with G S T Council

Deviprakash Seksaria ARN NO :65833 Navi Mumbai, 11 Sep 2017

The implementation of GST in general and on IFA income in particular is totally faulty and mindless. It should be totally abolished from IFA payments. But it is all wishful thinking as long as AMFI has control over our so-called welfare. They are just squeezing us out of biz. The government too is happy with the arrangement as it has a habit of going after the small earner while the large ones who evade tax are conveniently let off as they their friends.

Finitor Financial Services Private Limited ARN NO :118670 Navi Mumbai, 11 Sep 2017

I had been voicing my concern from the day one and had also taken up the issue with few Asset Management Companies and respective Mutual Funds. it is they who are collecting the management fee and therefore if any entity that should pay the GST it should be respective AMCs not the distributors. Distributors do not collect any fee from the end clients. The entire concept of GST is based on the services & goods consumed by the beneficiaries and they pay the GST. I am also with the view that the distributors should come together and have a countrywide forum to take up issues jointly as one voice on various issues concerning us. Vishal Jaiswal

Rakesh Mewada ARN NO :100012 Ahmedabad, 11 Sep 2017

I am in support of reducing tax on commission. And also we should demand for GST evasion for small IFAs whose commission income is less than Rs. 10 lakh, which was applicable during service tax.

Gurmeet Singh Johar ARN NO :ARN-120574 New Delhi, 11 Sep 2017

This 18% GST rate is absolutely absurd. Mutual funds are contributing the most towards collection of equity on a month-on-month basis which is helping Indian markets on a large scale. The commissions have been slashed heavily anyways for us and ours is one business where most compliance is required. Still such a high levels of GST is not good for small IFAs who are already struggling to comply with GST, SEBI, AMFI etc etc guidelines. GST on Mutual Fund Commissions should be brought down to 5%.

Mahesh Thamadihalli ARN NO :119190 Pune, 11 Sep 2017

I agree with the above, to Levy Tax @ 1%as Composition Tax Payers are levied, since Blanket 18 % is Heavy rate of Tax.

Binoy Shankar. Sahay ARN NO :ARN-10867 Patna, 11 Sep 2017

Rate is not justified ON .MF commission. They want that IFA SHOULD STOP THE WORK.

Bansi Hariani ARN NO :31564 Navi Mumbai , 11 Sep 2017

As per budget provision we are exempted from paying services tax up to Rs. 20 lacs. Now GST has replaced Service tax & it has been increased to 18%. NOW we should asked our finance minister Mr ARUN JAITELY what happened to the exemption limit of Rs. 20 lacs. Our commission is around 1%which is very negligible & AMCS are asking us to pay GST from this amount instead of paying GST in addition to our commission. This is gross injustice. Now as per GST provision many small establishments have been given relief so why not we DISTRIBUTORS be given relief & exemption be restored. Lets hope for the best & we should be united in our fight against the injustice.

rajesh haldar ARN NO :ARN-103209 NEW DELHI, 11 Sep 2017

i am with you. what kind of effort is require my end to raise the issue plz let me know.

JITENDRA KUMAR GUPTA ARN NO :99182 DAUSA, 11 Sep 2017

Today i got the point, why people not File Tax , which people (LIKE IFA) are payting TAXES on time, Govt. is giving pressure to suicide , after giving BURDEN of taxes, 18% tax on small IFA is too much, if our earning is below 2.5 LAC, we have to pay 18% tax..... +taxes on all buying + tax as per earning chart....OMG...please Stop like this....

Ganesh Gupta ARN NO :43630 Golaghat, 11 Sep 2017

We can have zero login day to protest and draw the attention of the government.

Kuttiyil Valsalan ARN NO :108412 Vadakara, 11 Sep 2017

All IFAs should jointly petition (online) to the Finance Minister to exempt paying GST at least earnings less than 20 lakh

ABHIJIT PARIK ARN NO :101425 AURANGABAD, 11 Sep 2017

I urge everyone of our fraternity Specially Senior Distributors and Torch Bearers of our profession to share the article or communicate the article to every distributor platform in the Country so that each of maximum distributors can Unite and Stand for our Right.

Krishankanta Shyam Jhalani ARN NO :116006 Gandhinagar, 11 Sep 2017

I fully agree with the view that we should jointly submit our case for review of the Rates and for full exemption for small distributors whose annual commission income is below Rs.20.00 lacks.

MEENA WANI ARN NO :0618 mumbai, 11 Sep 2017

I fully support with you If before GST we will exempted from service tax then why not we exempted from GST as our turnover less than 20 Lakh

Mahesh kumar Bhatia ARN NO :ARN-1584 Kanpur, 11 Sep 2017

I fully support with you If before GST we will exempted from service tax then why not we exempted from GST as our turnover less than 20 Lakh

Manju Jain ARN NO :14654 Ajmer, 11 Sep 2017

Yes it is very much true. This is hard earned money and Govt. must rethink on it. In the same country one is exempt upto 20 Lakh and IFA is not . This is not rational and justified.

PRONAY KANTI CHAKRABORTY ARN NO :40884 KOLKATA, 11 Sep 2017

As a distributor of mutual fund , we are used cater services to our investors. And for this ,purchase & sale is done by the Amcs . So if there is any kind of taxes for providing such a service, must be included in the expense ratio of mutual fund schemes.....and we used to get brokarage out of that. And above all 18% is not all justified...who ever make the payment

Arjun A. Chavan ARN NO :84452 Kagwad, 11 Sep 2017

Yes GST conceal must reduce GST rates to 0% for hus distributor arning below 20 lakh

Satish chandra ARN NO :Arn-59340 Mumbai, 11 Sep 2017

I agree completely that tax on commission should be slashed to 1 per cent.

Rishabh jain ARN NO :120301/ rishabh jain Agra, 11 Sep 2017

Yes i agree that we are already paying dirext tax if we will have to pay 18% more ... what willl we earn? Its like half of our earning will be taxable which is not right.. our government should understand this very loud and clear we as distributors are not able to meet pur own household expenses through this 18% gst. There should be a slab that above 20 lakhs commission people should be charged gst .. not below that...

MANISH ARN NO :109648 NEW DELHI, 11 Sep 2017

I AM WITH YOU JUST TELL WHAT TO DO.

Vishnu S Sonavane ARN NO :103262 Ulhasnagar, 11 Sep 2017

I fully support with you If before GST we will exempted from service tax then why not we exempted from GST as our turnover less than 20 Lakh

Chandresh Patel ARN NO :98088 Rajkot, 11 Sep 2017

18% GST + 20% in come tax ( average tax ) total 38% tax. This is too much for mutual fund advisors.

Rajnish Srivastava ARN NO :116819 AGARTALA, 11 Sep 2017

I fully support with you. If Before GST we will exempted from service tax then why not we exempted from GST as our turnover less than 20Lakh.

Sanchay ARN NO :86086 Vadodara , 11 Sep 2017

Gst shud be in. MF distribution. Ultimately we are helping create wealth for clients so such service shud be fully exempted. Also margins are in Paise and not alike our insurance counterparts where one makes 60-70% commission. N clients earn 5% return for 15-20yrs.

RISHABH KUMAR AGRWAL ARN NO :87041 Bareilly, 11 Sep 2017

YES, Unite for Reducing Tax on Commission, Even we are service provider rendering service to amc & customers with out receiving gst amount . therefore its the liability of amc /customers to pay gst amount not we as small mf distributors..

Pijus Bairagi ARN NO :ARN-117010 Kolkata, 11 Sep 2017

I have taken recently in the month of Dec16, MF investment consultancy as my income source but suddenly govt. has imposed GST @ 18% on us which is too high to bear. Request GST council to consider the plea for reducing the GST rate imposed on IFA fraternity.

TAPAS KUMAR GUPTA ARN NO :ARN-118974 KOLKATA, 11 Sep 2017

yes ..agree 100% that gst on distributors, below 20 lacs should be reduced drastically.

Dinesh Sahgal ARN NO :ARN-82377 Hyderabad, 11 Sep 2017

Hi Abhijit, I am totally with you, but i am surprised that not a single IFA is raising their concerns, nor our associations. We should take it forward unitedly. It is a big burden palced on our heads. On one side SEBI wants to kill us by asking to move to RIA model on the other side the government is also not supporting small IFA who are below the threshold of 20 lakhs income P.A. Actually i thing we should start a movement by getting signatures of all the IFAs and send it to Prime Minister, Finance Minister and ask them to consider our request.

Vikrant maheshwari ARN NO :111448 Hapur, 11 Sep 2017

20 lakh should be free and after that 10% tax.

Vishal Jain ARN NO :112128 Kolkata, 11 Sep 2017

It should definitely exempt of an assumptive tax should be there.

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