19 December 2013
YES, he should charge the same if he is liable under service tax, i.e, if his total services crosses 10 lacs in a financial year.
COMPANIE'S LAIBILTIY: the service is manpower supply service. for this if the contractor is not a co./body corporate meaning thereby is that the provider is individual, huf, partnership etc.. then the receiver co. (if body corporate) has to pay 75% of the tax. so on total labor charges pay 9.27% i.e, 75% of 12.36%. the above is due to application of reverse charge rule. if the co. pays this, it is paying its liability & can claim the same as cenvat credit if on the basis of challan if providing any output service subject to ccr rules
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