Option 1
ST can be charged at 12.36% only on total labour amount (if shown seperately in invoice). Reverse charge is applicable only if your client is an individual/HUF/partnership firm/AOP & the service receiver is body corporate/company.(50% of ST liability to be paid by your client & 50% by service receiver)
Option 2
Service tax can charged on 40%(execution of original works*) or 70%(repair/maintenance/servicing of goods contract) or 60%(remaining contracts) of the total invoice value(material + labour) at 12.36%. Reverse charge is applicable only if your client is an individual/HUF/partnership firm/AOP & the service receiver is body corporate/company.(50% of ST liability to be paid by your client & 50% by service receiver).
*Meaning of Original Works-all new constructions; all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise.