The mutual funds are a great source of funding towards a particular commodity and with the effect of GST, it has soared a price upon itself a bit more. Shyam Sunder, managing director, PeakAlpha Investment Services Pvt. Ltd said that “Beginning April 2016, the service tax was hiked to 15% (including Swachh Bharat and Krishi Kalyan cesses). The new goods and service tax (GST) regime will probably hike this tax to 18%. “I can’t say it is a burden… However, large distributors may be able to bargain for higher commission rates to ensure that their earnings don’t take a hit due to this hike in service tax rate.”
Anup Bhaiya, managing director and chief executive officer, Money Honey Financial Services Pvt. Ltd said that “representatives of distributors will have to speak to the finance ministry officials, or respective authorities, to keep the rates in the 12% slab.”
The new GST regime will be having several diligent compliances upon its transactions on rather each and every sector of financial attainment like mutual funds with a branch level interstate operations. The impacts would be concerned deeply in this regard and therefore there are several authorities formed by industry officials to cope with new emerging taxation regime perfectly.
