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3Novices : GST might hit small fund distributors, investment advisors

Advent of the goods and services tax (GST) is likely to hit small distributors and investment advisors, says the mutual fund (MF) sector.Players say ambiguity over input tax credit and inter-state transactions has created confusion among distributors, particularly those earning less than Rs 20 lakh a year.Meanwhile, fund houses and the Association of Mutual Funds in India (Amfi) are helping distributors get GST-ready, by conducting workshops and educating through lists of ‘Frequently asked questions (FAQs). Amfi has also appointed consultancy entity PwC India to assess the impact on the sector.According to industry players, registration and obtaining of GST number is mandatory for all MF distributors, irrespective of their income. Fund houses are expected to deduct GST from distributors’ commission, even those whose income is below the threshold of Rs 20 lakh, if they haven’t provided their GST number. Those providing it will be paid the entire brokerage and distributors will have to . http://ift.tt/2sGbDDsTwitter 3Novices

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