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Charging of Service Tax

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(Querist)
15 June 2009 We are engaged labour contracts, they are supplying the labours monthly basis contrator will raise consolidated bill along with the supporting of individual labour details and he is charging fixed amount as service charges for each labour.

The contractor charging the service tax on full amount.

My question is whether this is correct or he has to charge service tax only on service charges?
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SIDDHARTHA SANKAR ROY

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SIDDHARTHA SANKAR ROY (Expert)
15 June 2009 Yes he is correct in charging service tax on the full amount.
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