whether service charge and service tax is applicable on esic reimbursment

[Pandit Bhagat]

Dear sir,

kindly confirm that whether service charge and service tax applicable on ESIC reimbursement amount from company in contractor invoice in separate bill.

AI Summary

Taxability of reimbursed ESIC contributions: reimbursements integral to the service form part of the contractor's taxable gross value.
Whether service tax applies to reimbursed employer statutory contributions depends on whether the reimbursement is incurred in the course of providing the taxable service and constitutes consideration; where the contractor employs staff and bears statutory obligations, ESIC reimbursements are integrally connected with the service and form part of the contractor's gross value rather than qualifying as a pure agent exclusion.