Clarification on manpower supply / cleaning / housekeeping

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2012 Our company getting contracts for cleaning in factories, offices and societies. Whether it is coming under Manpower supply or coming separately under cleaning and house keeping. Whether 25% service tax to be paid by service provider and 75% to be paid by receiver or 100% service tax to be paid by service provider. Please clarify

CA Manish

CA Manish (Expert)
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08 December 2012 Yes, It comes under Manpower Supply and You have to pay 75%.

@VaibhavJ

@VaibhavJ (Expert)
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08 December 2012 hi

if your work is restricted to only cleaning activity then this will be falling under cleaning services..

Thanks

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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08 December 2012 Reverse charge on manpower supply is applicable only if the service provide is an individual or HUF or firm.

If it is a COMPANY, then reverse charge is NOT applicable and the whole liability is to be borne by the service provider.

@VaibhavJ

@VaibhavJ (Expert)
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08 December 2012 Since contract is for cleaning, Manpower supply doesnt come in to picture.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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08 December 2012 Dear Vaibhav, the nature of the contract is not important. It is the substance of the transaction that has to be seen.

A contract for housekeeping services involves deployment of manpower at the premises of the service recipient and accordingly it comes within the definition of manpower supply.

Accordingly, reverse charge is applicable.

@VaibhavJ

@VaibhavJ (Expert)
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08 December 2012 In case of Manpower Supply you need to take CLRA registration which is not required in case of cleaning services.

Moreover housekeeping services requires provision of cleaning materials.

So housekeeping contract can not be termed as manpower supply agencies.

If contract specifically mentions cleaning & housekeeping then according to me same can not be termed as manpower supply only.

Thanks for the view.