If you have private limited company.If you avail service from Individual, reverse charge mechanism will be applicable for work contract. SO under reverse charge mechanism, 50% of service tax amount is required to pay by you under reverse charge. and 50% amount of service tax will be charged by individual under the bill. You are not providing service so you should not charge bill.If you are availing service from corporate, full amount of service tax should be charged by service provider.
Hi, Reverse Charge Mechanism is applicable to some class of Service Provider ..like if you provide service of manpower supply than reverse charge is applicable if you are Individual/ HUF/ Partnership firm AOP/ LLP and service receiver is Pvt Ltd company or Ltd Company . Reverse charge is applicable to all the companies registered under companies act.. Whether pvt ltd or ltd companies Thanks