Home Forum Service Tax Month 3 2021 2021 (3) This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
Service tax on mutual fund sub broker - Service TaxExtract One of the clients was providing sub broking services to mutual fund brokers and received commission/sub brokerage on the same. As per the client, the sub brokerage in its case was exempt from service tax under sno 29(a) of Notification no. 25/2012 which covers services provided by sub broker to stock broker. The definition of Sub broker as per the NN is deemed to be same as per Sebi regulations as per which it means any person assisting a stock broker/trading member in transactions in securities. In turn, securities also include mutual funds. However stock broker as per the same includes person who has trading rights in a stock exchange. The mutual fund broker to whom services of sub brokerage were provided, was not having trading rights but instead is only registered as MF advisor with AMFI as per law. Therefore opinion is requested whether the service tax exemption would be available or not in case of mutual fund sub broker?
|