Applicability of service tax in housekeeping service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2014 Applicability of Service Tax in Housekeeping service including Material.
House keeping invoice Rs. 1,27,860/-(including material)for per Month
service provider is individual category.
service receiver is company
Query is
1. Whether RCM is applicable in this case?
2. OR its come under supply of manpower service category.

please advice with illustration please
warm regards
Nitin Salunke
FCI, Manager (fin)

Ganeshbabu K

Ganeshbabu K (Expert)
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20 July 2014 In My opinion Reverse charge will not applicable due to following reasons
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1)It is not work-contract service..Bcoz what ever material or chemicals used by house keeping services does not get transfered to service receiver but instead gets consumed while providing such service.
So to treat it as work-contract service material portion of contract is not getting transfered to service receiver.

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Hence it is not work contract service and no reverse charge implication
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2)As per as Manpower supply is concenrned
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It is not manpower supply because generally house keeping services will be outsourced to some service provider and service receiver will not demand no. of workers to complete service..moreover work will not happen under super vision of service receiver
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In that backdrop housekeeping services will not cover in the ambit of reversecharge
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As reversecharge not applicable it is the responsibility of service provider to collect entire service tax 100% if applicable from service receiver and service provider solely responsible for discharge of service tax liability
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Note:If House keeping service handled by hiring manpower and with your supervision ofcourse it is manpower supply

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2014 Big Thanks.. for reply ..Ganeshbabu k.
in this case if service provider shows in their invoice an amount of Rs. 1,27,860/- is including service tax.so we have to pay the entire amount of bill. please guide.

Warm Regards
Nitin Salunke
Manager (fin)

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Querist : Anonymous

Querist : Anonymous (Querist)

Ganeshbabu K

Ganeshbabu K (Expert)
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22 July 2014 As i said above, if it is not coming reversecharge
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Service provider is liable to collect entire tax from service receiver
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Hence you can pay as per invoice to your service provider

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make sure whether they have quoted service tax number in invoice..thats it..so that no problem will come in taking cenvat credit

Note: Ofcourse TDS 194C Applicable
FYI

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Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 AGAIN BIG THANKS....Ganeshbabu k.

realy good information

keep in touch

Warm Regads

Nitin Salunke

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 AGAIN BIG THANKS....Ganeshbabu k.

realy good information

keep in touch

Warm Regads

Nitin Salunke