Service tax on commission paid to individual

Dear Members,

We are SSI Pharma manufacturing companies making supplies to different state govt departments under Rate Contracts(tenders). We are paying all Excise duties and taxes as applicable and availing Cenvat credit.
As we are making supplies to various states, to monitor issues like submitting required documents, looking after the shipment and stock entries, bills, reports, to follow-up of payment and other related works, we authorize a local person(free lance laisioners) in every state of business.

We pay each person of differnt state Rs.1 to Rs.9 laks per year after deducting TDS basing on the sales turnover.
Instead of claiming the same work in our books as Commission Head, we filed as Recovery charges Head as per auditor Advise.

Now we need to know whether is it liable for to pay Service Tax on the paid amount, and if so whether it is the laibility of payer or receiver. Your valuable suggestions are requested

Thank you.

Kishore.