whether service tax is applicable on esic reimbursment

[Pandit Bhagat]

Dear sir,

Kindly confirm whether service tax is applicable on esic reimbursement from company in separate bill.

Regards,

Pandit Bhagat

AI Summary

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.