TaxTMI 
TaxTMI 
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
Building Construction/Labour Chg. under wct reverse charge
07 Nov 2012 
4 Replies 
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Reverse charge mechanism: corporate recipients may bear part of service tax on works contract and manpower supply.
Notification No. 24/2012 prescribes two methods to determine the service portion of a works contract: (1) gross contract value less value of goods transferred, with enumerated components includible in the service portion; or (2) a presumptive valuation of the total contract value for categories such as original works, maintenance/repair and other works, with definitions for "total amount" and "original works". Notification No. 30/2012 applies a reverse charge mechanism requiring specified apportionment of service tax between certain unincorporated suppliers and corporate recipients when such services are supplied to a body corporate. (AI Summary)
Notification No. 24/2012 prescribes two methods to determine the service portion of a works contract: (1) gross contract value less value of goods transferred, with enumerated components includible in the service portion; or (2) a presumptive valuation of the total contract value for categories such as original works, maintenance/repair and other works, with definitions for "total amount" and "original works". Notification No. 30/2012 applies a reverse charge mechanism requiring specified apportionment of service tax between certain unincorporated suppliers and corporate recipients when such services are supplied to a body corporate. (AI Summary)