Service Tax on PF & ESI payments, Service Tax

[RAMESH ANANTHAKRISHNAN]

Dear Sir,

 

We are engaging contract labours for our production operation. We pay Rs.150 to the concerned contract labour and Rs.10 as service charge per person per day to the contractor. We pay Service Tax at 75% of the wage amount  @ 12.36% and contractor pays for the balance 25%. Apart from this we pay ESI & PF to the concerned departments based on Rs.150/-

Do we liable to pay Service tax for ESI & PF payment also?

 

Kindly clarify.

 

Regards

 

A.RAMESH

 

 

Posts / Replies

[GANTI SARMA]

You have to pay service tax on entire bill that means including ESI & PF.