Building Construction/Labour Chg. under wct reverse charge

[RAM SHARMA]

Dear Experts,

I want to know your view regarding Building Construction and labour charges under reverse charge machenism notification no 30/2012 and Notification No. 24/2012. Pl explain service tax liabilty in this regards.

Thanks

AI Summary

Understanding Reverse Charge Mechanism for Construction Services: Notifications 24/2012 & 30/2012 Explained A user inquired about the service tax liability under the reverse charge mechanism for building construction and labor charges, referencing Notifications No. 30/2012 and 24/2012. An expert explained that Notification No. 24/2012 deals with valuing the service portion of a works contract, while Notification No. 30/2012 pertains to the reverse charge mechanism, detailing how tax liability is shared between service providers and receivers. The reverse charge applies when services are provided by individuals, HUFs, or partnerships to corporate entities. Another user sought clarification on whether the reverse charge mechanism applies to contracts involving only labor supply.