Ramakrishnaraju (Asst.) 01 November 2015
My company had an agreement with an AMC contractor and in the agreement it is made very clear that the contractor had to pay the minimum wages, espi, pf and other statutory benefits to be extended to them. However, employer portion of PF, it will be reimbursed to the contractor upon producing the proof of payment to PF Authorities. Is it correct?. Now, the company is asking for reimbursement and on that also service tax he is demanding. Whether that is also correct.
advocatepassy@gmail.com 971794 (Advocate) 01 November 2015
Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 01 November 2015
If contractor is paying PF or reimbursement of PF of workers from company then no service tax is applicable.PF is a legal deposited amount .
If contractor raised a separate invoice for PF/ESI amount from the principle employer then service tax is liable to pay by contractor itself.
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