TaxTMI 
TaxTMI 
Question - What are proposed amendments in provision related to reverse charge in Finance Bill 2015 ?
Reverse charge mechanism
01 Mar 2015 
2 Replies 
3779 Views Asked by
Reverse charge mechanism expanded to cover manpower, security and mutual fund and lottery agent services, shifting tax liability to recipients.
The Finance Bill 2015 expands reverse charge coverage: manpower supply and security services provided by individual, HUF or partnership firms to body corporates move from partial to full reverse charge with the recipient liable. Services of mutual fund agents, mutual fund distributors and agents of lottery distributors are placed under reverse charge after withdrawal of exemption; the asset management company or mutual fund pays for mutual fund agent/distributor services, and the distributor or selling agent pays for sub-agent lottery services. (AI Summary)
The Finance Bill 2015 expands reverse charge coverage: manpower supply and security services provided by individual, HUF or partnership firms to body corporates move from partial to full reverse charge with the recipient liable. Services of mutual fund agents, mutual fund distributors and agents of lottery distributors are placed under reverse charge after withdrawal of exemption; the asset management company or mutual fund pays for mutual fund agent/distributor services, and the distributor or selling agent pays for sub-agent lottery services. (AI Summary)