Service Tax Exemption for All Mutual Fund Distributors wef July 1, 2012

The recent Budget Notification on Service Tax 12/2012 states the following:

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India Ministry of Finance Department of Revenue
Notification No.12/2012-Service Tax

New Delhi, the 17th March 2012

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Finance Act), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66 B of the said Finance Act, namely:-

29. Services by the following persons in respective capacities -
(a) a sub-broker or an authorised person to a stock broker;

(b) an authorised person to a member of a commodity exchange;

(c) a mutual fund agent or distributor to mutual fund or asset management company for distribution or marketing of mutual fund;

(d) a selling or marketing agent of lottery tickets to a distributer or a selling agent;

(e) a selling agent or a distributer of SIM cards or recharge coupon vouchers; or
(f) a business facilitator or a business correspondent to a banking company or an insurance company in a rural area

Source: Service Notification 2.2012
Source: www.cbec.gov.in/ub1213/st02-2012.pdf
http://www.ifagalaxy.com/

Update: June 11, 2012