Service Tax on ESI and PF Reiumbursement to manpower agency under RCM

[Raghu K]

Dear Experts,

One of the agency providing manpower supply to our company. Monthly they give two seperate bills.

Bill 01 - for Labour Charges

Bill 02 - for ESI and PF Reiumbursement

We paid ST under RCM on bill 01 and we took CENVAT on the same. but we have not paid ST under RCM on bill.02 because they raise seperate bill for that with supporting documents like, ESI,PF, PT paid challans, attendance sheet, salary sheet.

Pls clarify wheather ST is applicable on ESI & PF reiumbursement under RCM.

regards

Raghu

AI Summary

Service tax on reimbursements: gross amount includes ESI and PF, so reverse charge can apply to such reimbursements.
Reimbursable statutory payroll contributions billed separately by a manpower supplier are includible in the gross amount charged for taxable services; the amended definition treats reimbursable expenditure as part of taxable consideration, so ESI and PF reimbursements are not excluded from service tax liability under the reverse charge mechanism, and recipients must consider the relevant service period when applying the amended provision.