Revrse charge method

In respect of services provided or agreed to be provided by way of supply of manpower for any purpose, service provider will pay the service tax of 25% of bill value and recipient of service will pay the service tax of 75% of the bill value. 

In this case it is not supply of manpower, but works contract; since you are billing against your contract for laying tiles.

hence reverse charge is not applicable.

Friends correct me if my understanding is incorrect

Dear Vishal, as per Serial No 8 under Part II of notification no 30/2012 dated 20.06.2012, person providing the service of   "supply of manpower for any purpose" (being an individual, an HUF, a firm or an AOP)  is covered under Joint Charge Mechanism (JCM) wherein he is liable to pay 25% of the service tax. Balance 75% of the tax will be paid by the person receiving such services. JCM in this case is applicable only when the service receiver is a business entity registered as a body corporate. In such instance, the service provider has to charge only 25% of the service tax in the tax invoice along with the labour charges (Rs. 1,00,000 + 3090 in your case) and it is also advisable to mention that the balance 75% of the tax (i,e., Rs 9270) shall be payable by the service receiver.

Dear Prasad, Joint Charge Mechanism is also applicable in case of a person, being an individual, or an HUF, or a firm or an AOI, providing service covered under Works Contract to a business entity registered as body corporate. The percentage of tax liability shared by the provider and the receiver in this case is 50% each.

Originally posted by : Dinesh Vanan
	Originally posted by : SHRAVANA DOTA Dear Vishal, as per Serial No 8 under Part II of notification no 30/2012 dated 20.06.2012, person providing the service of   "supply of manpower for any purpose" (being an individual, an HUF, a firm or an AOP)  is covered under Joint Charge Mechanism (JCM) wherein he is liable to pay 25% of the service tax. Balance 75% of the tax will be paid by the person receiving such services. JCM in this case is applicable only when the service receiver is a business entity registered as a body corporate. In such instance, the service provider has to charge only 25% of the service tax in the tax invoice along with the labour charges (Rs. 1,00,000 + 3090 in your case) and it is also advisable to mention that the balance 75% of the tax (i,e., Rs 9270) shall be payable by the service receiver.

but this is applicable only if the service receiver is Company.