Service Tax Charged on the Bonus amount

[Asked by Guest]

Dear Sir,

Greeting!

Our company is receiving services of Pantry Boy & Housekeeping boy from one of the renowned Facility management contractor.

Our company is going to pay Bonus to Pantry Boy & Housekeeping boy through bill submitted by the contractor.

In the bill, contractor has charged (A) Bonus Amount + (B) Service Charges on the Bonus amount @12.5% + Services Tax on both the amount (A+B) @10.3%

My query is that whether service tax should be charged on the bonus amount.

 

AI Summary

Service tax on gross amount including bonus is chargeable when bonus constitutes remuneration and is invoiced by contractors.
Multiple practitioner replies conclude service tax is chargeable on the gross amount billed by the service provider, including bonus sums invoiced through the contractor; taxability depends on whether the bonus constitutes part of the workers' remuneration. The discussion notes contractors routinely add service charges and levy service tax on the aggregate billed amount, and that bonus is treated as consideration under the Finance Act, attracting service tax.