As a labor contractor, we are raising arrears bill to one of our principals, which includes ESIC and PF contributions as well. Is service tax payable on the gross amount or net amount of arrears only.
ST is payable on the gross bill amount including ESIC, PF, and arrears amount. Also, you have to collect this amount from the Principal Employer as per the new tax guidelines.
If you are charging/getting reimbursement of ESIC & PF contribution, in that case, service tax is not applicable. You should raise your bills separately accordingly.
Whether service tax is applicable to ESIC reimbursement on a separate invoice.
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