Mutual funds rope in PwC to assess GST impact

Industry fears additional tax outgo of Rs 300-500 crore due to higher service tax

Mutual fund body Association of Mutual Funds in India (Amfi) has appointed consultancy PwC to prepare a white paper on the implementation of the goods and services tax (GST) and its impact on the mutual fund sector. PwC is expected to finalise the draft this week which will then be forwarded to the Securities and Exchange Board of India (Sebi).
 
Under the GST regime, asset management companies (AMCs) will have to pay service tax of 18 per cent on the investment management fees they earn. Until now, the rate was 15 per cent. This might lead to an additional