service tax apllicable or not

hello caclubindia i would like bring it to your notice that a certain listed company has been employing around scores of employees on contract basis and pays them salary every month also with TDS and ESPF deduction but the question here is that the company issues them FORM 16A every quarter & the employees file their return as contarctor and they seems to have no idea of sevice tax liability is the company right in doing so by employing them as contractor and evading service tax.