tax deduction at source

A insurance company calculate the commission of his brokers, deduct the tds and pay the net amount. After that the broker gross up his brokerage amount and charge service tax on that gross up amount. The insurance company reimburse the service tax without deducted the TDS.

My question is whether the insurance company is liable to deduct tds on service tax element or not. this question arises in the practicle scenerio.