TaxTMI 
TaxTMI 
Whether service tax is applicable on PF/ESIC amount charged by the labour contractor? (above two elements are charged on basic amount of daily wages) . Pl guide. A D Kale
Whether Service Tax is payable on PF/ESIC element paid labour contractor?
31 Oct 2012 
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Service tax on manpower supply includes PF and ESIC contributions as part of the taxable consideration for the contractor.
Service tax on supply of manpower is chargeable on the full amount of consideration, which includes recovery of staff costs such as salary and employer contributions; PF and ESIC amounts recovered by a labour contractor form part of the contractor's consideration and must be included in the taxable gross value even if paid directly to the employee or authority. (AI Summary)
Service tax on supply of manpower is chargeable on the full amount of consideration, which includes recovery of staff costs such as salary and employer contributions; PF and ESIC amounts recovered by a labour contractor form part of the contractor's consideration and must be included in the taxable gross value even if paid directly to the employee or authority. (AI Summary)