TaxTMI 
TaxTMI 
WHETHER PARTIAL REVERSE CHARGE MECHANISM APPLICABLE ON JOB WORK (I.E. LABOR RATE SUB CONTRACT)
partial reverse charge on job work
21 Dec 2013 
2 Replies 
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Partial reverse charge applies to job work when characterized as supply of labour, creating shared tax liability between parties.
Partial reverse charge applies to job work when the transaction qualifies as a supply of labour; factual analysis of the arrangement determines applicability. Where supply of labour is established, the reverse charge mechanism leads to a split tax liability with the service provider bearing part of the tax and the service receiver bearing the balance. (AI Summary)
Partial reverse charge applies to job work when the transaction qualifies as a supply of labour; factual analysis of the arrangement determines applicability. Where supply of labour is established, the reverse charge mechanism leads to a split tax liability with the service provider bearing part of the tax and the service receiver bearing the balance. (AI Summary)