Service tax on agency commission

SUNIL (AM(ACCOUNTS & COSTING)) (61 Points)

23 November 2016  

Dear Tax Experts,

One of our client is govenment company registerted under Company Act.Government transfers lumpsum amount to this company.This company awards contract to contractors and get this work done.For this it gets commission at fix rate and pays the rest amount to party.Does this commission collected by company falls under defination of commission and does it had to pay service tax on commission income?If no then kindly provide case laws?