Hr , Ir And Legal Matters
Finance,taxation,hr And Admn
+3 Others

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I hire workers through registered Labour Contractors for work in our factory. I notice that in their billing, they apply Service Tax on the PF,ESIC and their service charge amount also. Is this correct?

From India, Pune
Service tax is on total amount collected and no abatement has been provided. Therefore they are correctly charging service tax.
From India, New Delhi
Dear Sainirk
You need to check the terms on which you have agreed upon with the contractor. You must be paying him a certain amount as his service fee. Out of which he must be paying the labouers. i.e if you have agreed to pay him 1000 rs for hirng a eletrician. then he would be charging 10.30% on Rs 1000.
Is this clear or you have some other doubt.

1.The service tax will be charged on total bill , but excluded on pf , esi 2.The rate of sevice tax as on date is 10.3% on total bill of the contractor
From India
Res. All,
Please Clear following:-
Wages (Basic+Allowance),
PF-12% (Employer Share),
ESI(Employer Share),
+Admn. Charges PF,
+ESI- Admn Charges,
+Service Charge on sub-total-2,
+Service Tax on sub-total-3,
Grant Total
Pl. give your oppenion Above Calculation wron or right.

From India, Gurgaon
Accordingly new rule of Service Tax,
1.Is it correct the company should be pay 75% service tax directly to Exise and 25 % to pay labour Contractor?
Please give confirmation about this rule.
With Regards,

From India, Pune
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