n NISM Certifications
V-A NISM Series V-A
Medium

In which of the following cases can Goods and Service Tax (GST) be charged to the mutual fund scheme over and above the Total Expense Ratio of the scheme?

Practice question from NISM Series V A - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    GST applicable on AMC fees only can be charged to the scheme over and above the Total Expense Ratio

  2. B

    GST applicable on any fees must be within the Total Expense Ratio

  3. C

    GST applicable on distributor commission only can be charged to the scheme over and above the Total Expense Ratio

  4. GST applicable on AMC fees as well as distributor commission can be charged to the scheme over and above the Total Expense Ratio

    Correct answer

Why this is the answer

GST on both AMC fees and distributor commission can be charged to the mutual fund scheme over and above the Total Expense Ratio (TER), as per applicable taxation laws.

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