Whether this is a taxable service?

I think it is taxable service

only exemption is for expenses incurred just as a pure agent and for that 1 important condition is that provider should collect only actual amount of expense.

Here Service provider is collecting excessive amount, thus expense recovered will be added to taxable amount of service

.

IF THE TURNOVER IS LESS THAN TEN LAKH DONT BOTHER.

IF YOU CROSS 10 LAKH PLEASE VISIT THIS LINK

https://servicetax.gov.in/st-profiles-home.htm

Business Auxiliary Service, PLEASE READ (B) (a), Commission Agent