service tax

  1. Hi, I have confusion. We have a HR consultancy (proprietorship) (assume name is ABC) who provides us with employees. We pay salary and bonus of these employees to ABC who in turn pays to the employees. Also when employees incurre their out of pocket expenses, they raise claims which are again paid to the ABC which reimburses back to the employees Whenever ABC raise an invoice on us, they charge us with salary/bonus + Agency fees + service tax on total amount. I am not able to understand whether they should charge service tax on total amount or only agency fees. Please help.
  2. And if they do not charge any agency fees and just reimburse the amounts paid by us (the company), can they be treated as pure agents? And will there be service tax applicable?
  3. Is there any scope of RCM?