TaxTMI 
TaxTMI 
Dear sir,
Kindly confirm whether service tax is applicable on esic reimbursement from company in separate bill.
Regards,
Pandit Bhagat
whether service tax is applicable on esic reimbursment
30 Jan 2017 
8 Replies 
4742 Views Asked by
Service tax applicability on ESIC reimbursement: not leviable when genuine reimbursement or pure agent; taxable if included in contractor's charge.
Whether service tax applies to ESIC reimbursements depends on the nature of the payment. Genuine reimbursement paid on behalf of a principal with documentary support is treated as a pure agent and not subject to service tax, and employer-paid employee contributions likewise are non-taxable. Conversely, where ESIC contributions are included within a contractor's gross charge for manpower or security services, service tax is leviable on the gross consideration. (AI Summary)
Whether service tax applies to ESIC reimbursements depends on the nature of the payment. Genuine reimbursement paid on behalf of a principal with documentary support is treated as a pure agent and not subject to service tax, and employer-paid employee contributions likewise are non-taxable. Conversely, where ESIC contributions are included within a contractor's gross charge for manpower or security services, service tax is leviable on the gross consideration. (AI Summary)