Yes. Partial Reverse charge is applicable since your firm is proprietorship. The tax is to be paid at the rate of 12.36% on 25% of invoice value.

Reverse tax is applicable when service provider is individual/partenrship and service receiver is body corporate. Ratio is 25% : 75 %

Originally posted by : Gourav Choudhary
	Thanks Mr. Sahil for your valuable reply. My client has already paid service tax @ 12.36% for the period July to Sep 2012 and now the parties are claiming refund of amount in excess of 25% so that they can remit it to govt. in their account. Wht is the option left with my client in the current scenario?

In This Case, Gaurav, You Can Make Journal Entry, & Can Claim Refund/Adjust Service Tax paid in Excess of 75% from Goverment.

one of my client is labour contractor (tile contractor). he is provied labour service to a builder. my bill is as belowe

Labour chg. 100000/-

Service Chg. 12360/-

Total value is 112360/- 

the builder pay to us  up to 30/06/2012   Rs. 111360/- and know he pay Rs. 102090/- (less TDS 1000)

We want to know what is the right method of aacouning. b'cos my ladger is showing outstanding of rs. 9270/- i.e. 75% of service tax 

in this case revrse charge method is applicable of not.