one of our client is suppying labour on contract basis to a pvt ltd company.
i am applying for his service tax registration.
My questions: 1. whether reverse charge is applicable in this case and if yes how much should my client pay and how much should the other party ? 2. what precaution should should i take while filling the ST-1 form ?
17 June 2013
my client is an individual and suppose his receipts are less than 10 lacs then can he claim exemption from payment of service tax under reverse charge.
suppose value of taxable service is rs.100/- therefore my client i.e. service provider (individual) liability is Rs.25*12.36% ie. Rs. 3.09
if my client is claiming ssi exemption the it is mandatory for him to Rs.3.09 to the government.