14 April 2014
Reversecharge applicable when service receiver is business entity registered as body corporate . where reversecharge applicable have to charge 25% of service tax (12.36*25%=3.09%)and service receiver responsible for balance service tax payment . 1)so if your client is Company registered under company act or LLP registered under llp act you have to charge 3.09% service tax(25%)..service receiver responsible for balance service tax payment
2)in any other case you are responsible to pay full service tax so you have to charge full service tax 12.36% from client and remit to gov.