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Reverse charge mechanism in service tax for labour contract

07 June 2016

Dear Sir/Madam,

I want to know the rate of Service tax to be charged under RCM if we provide labour job work with Lumpsum/piece rate to a construction company.

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2 Replies

Chirag Parmar (Service) (65 Points)
Replied 07 June 2016

In the instant case, it seems that you are providing man power supply services.

Liability to pay service tax @ 15% for such services is on service receiver under reverse charge mechanism in the case of service provided by non-body corporate person to body corporate as per notification no 30/2012- service tax dated 20-06-2012.

If you are service provider other than Body corporate and providing service to the body corporate than you will not be liable to charge and pay service tax.

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karan jit singh (Consultant) (1299 Points)
Replied 11 June 2016

Originally posted by : M Srijesh Kumar
	Dear Sir/Madam, I want to know the rate of Service tax to be charged under RCM if we provide labour job work with Lumpsum/piece rate to a construction company.