Mutual funds in India deduct the servicetax while paying brokerage. Can the broker claim credit for such payme

The broker has to pay servicetax on his other services but the servicetax deducted from mutual fund income is not a direct payment by him but by mutual funds.

Your attention is invited to definition of "input service" under CENVAT Credit Rules on the link below:

http://www.allindiantaxes.com/cenvatrule...
(l) 鈥渋nput service鈥?means any service,-


(i) used by a provider of taxable service for providing an output service; or


(ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal,


and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;

You are ,therefore,entitled to avail the credit if it is input service for you.

Hello,
I am AMFI certified mutual fund advisor from Jalandhar.For your queries regarding mutual funds investments , u can mail me at globalinvestments2007@rediffma...
We have distribution rights for 30 asset management companies.

Sincerely
Rahul Monga Report It

It is all the same. It is your liability to pay the service tax to the brooker. The brooker is not suppose to pay it, but he is to recover the amount from you. As you are transacting through the booker, he will deduct whatever is due to him from any payment he is suppose make you.