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Liability of service tax on labour supply contract gross

This query is : Resolved 
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(Querist)
09 February 2012 Sir

We issue contracts for supply of labour/workman for our day to day requirement.

The contractors to whome we had alloted the service to provide workman is demanding Service Tax.
Please guide us who is responsible for payment of service tax and up to what extent.
wE PAY HIM as under

Wages ( to be reimbrused to
workman by him 10000
E P F emp[loyeer share 780
service charges 500
Please guide us and also give th
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kartik_somu

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kartik_somu (Expert)
09 February 2012 you are liable to pay service tax and you can claim credit.
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