Reverse charge mechanism, Service Tax

[Admin TMI]

Question - What are proposed amendments in provision related to reverse charge in Finance Bill 2015 ?

Posts / Replies

[Admin TMI]

Reverse charge mechanism:

• Manpower supply and security services when provided by an individual, HUF, or partnership firm to a body corporate are being brought to full reverse charge. Presently, these are taxed under partial reverse charge mechanism.

This change will come into effect from 1.4.2015.

• Services provided by mutual fund agents, mutual fund distributors and agents of lottery distributor are being brought under reverse charge consequent to withdrawal of the exemption on such services. Accordingly, Service Tax in respect of mutual fund agents and mutual fund distributors services shall be paid by assets management company or, as the case may be, by the mutual fund receiving such services. In respect of sub-agents of lottery, Service Tax shall be paid by the distributor or selling agent of lottery.

This change will come into effect from 1.4.2015.

[shamji bhanushali]

New system regarding RMS for work contract servicesas per Finance bill 2015