TaxTMI 
TaxTMI 
Please advice minimum amount of service tax for payment to labout contractor
Service Tax on Labour Contractor
ANIL CHAUHAN
Labor Contractors' Service Tax: 12.36% Rate with 75% Reverse Charge for Receivers Under Notification No. 30/2012-ST A discussion on the application of service tax for labor contractors highlights that the rate is 12.36%. Under Notification No. 30/2012-ST, the reverse charge mechanism applies, requiring the service receiver to pay 75% and the service provider 25% of the tax. Service receivers must register and pay their portion, and CENVAT credit is available post-payment. The forum addresses various scenarios, including advance payments and specific contractual arrangements, emphasizing compliance with the reverse charge mechanism and the need for proper registration and documentation for tax purposes. (AI Summary)