Valuation (Service Tax) — Security Agency Services — Labour cost and contributions for ESI and EPF not excludible from Service tax

Service tax scope: labour costs and statutory contributions remain taxable under gross consideration rule in security agency services.

Service tax on security agency services is levied on the gross amount received as consideration, which includes total labour cost and the employer's contributions to ESI and EPF; CENVAT credit on inputs and input services remains available but does not alter that these labour-related costs form part of the taxable value, reflecting service tax's nature as a consumption tax whose burden rests on the consumer.