Service tax valuation

Rahul Verma (CA-Final) (484 Points)

05 February 2016  
A persona providing services along with material which falls under Work Contract Services and attaching seperate sheet against labour but on the face of bill he does not mentioned amount of labour although mentioned gross amount. Company is depositing ESI on labour portion which was mentioned on a paper attached with that but when they are calculating Service tax they did not considered amount of labour as shown rather calculation made on gross amount with 70% service. So kindly suggest they are doing right calculation also if yes then why not considering amount of labour as we have.