Works contract reverse mechanisum

In case of Works Contract service, Reverse Charge is attacted if the service receiver is a Company and service provider is not a Company.

In such case liability of service provider is 50% and that of service receiver is 50%.

In your given case:

1) Reverse charge applicable

2) Reverse charge will be applicable if the labour contractor is not a Company.

RCM is applicable in case of a works contract ( 50% of value payble by provider subject to exemption; 50% of value payable by Co - no exemption) and NOT in case of labour contract. Manpower supply however is 100% payable under reverse charge.

In case of labour contractors, RCM is applicable , only if the company controls the labourers and work to be done by them.

RCM is not applicable, If the labour contractor controls the laborers and the work to be done by them.