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<h1>Security Agency Services: Labor Costs, ESI, and EPF Contributions Must Be Included in Service Tax Valuation.</h1> The circular issued by the Commissioner of Central Excise clarifies that for Security Agency Services, the cost of labor and contributions towards Employee State Insurance (ESI) and Employees' Provident Fund (EPF) cannot be excluded from the service tax valuation. The Ministry has examined the representation made by the Security Agency Association and determined that service tax is levied on the gross amount paid for services, which includes labor costs. The service tax burden ultimately falls on the consumer, not the service provider. This information should be communicated to all members of relevant Trade Associations.