partial reverse charge on job work

[RAM AVTAR]

WHETHER PARTIAL REVERSE CHARGE MECHANISM APPLICABLE ON JOB WORK (I.E. LABOR RATE SUB CONTRACT)

AI Summary

Partial Reverse Charge Mechanism: Job Work Labor Rate Subcontracts and Service Tax Distribution Explained Under Specific Conditions A discussion on the applicability of the partial reverse charge mechanism for job work, specifically concerning labor rate subcontracts, involved two responses. The first response indicated that the applicability depends on whether the situation involves the supply of labor, with the reverse charge mechanism applying if the service provider is an LLP or individual. The second response echoed this, stating that if labor is supplied, the service provider pays 25% of the service tax, and the service receiver pays the remaining 75%.