Cleaning services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2010 We are providing cleaning services to Institute. should we charge Service tax on the services provided to the same. Please advice.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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09 March 2010 if your gross receipts in year is more than 10 lac then you are liable to registered in service tax and pay service tax.

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2010 I want to clear that i m registered in service tax and providing services having value more than 1 crores.I heard that service tax will not be levied on the cleaning services provided to institute.

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Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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19 July 2024 As of my last update, the provision regarding exemption from service tax on cleaning services provided to educational institutions was in effect under certain conditions. Here’s a detailed explanation:

1. **Exemption Provision**: According to Service Tax Notification No. 25/2012 dated June 20, 2012, services provided to educational institutions are exempt from service tax under certain conditions. The exemption specifically covers services provided to an educational institution by way of catering, security or cleaning or housekeeping services performed in such educational institution.

2. **Conditions for Exemption**:
- The exemption applies to services provided to an educational institution which provides pre-school education and education up to higher secondary school or equivalent.
- The exemption does not apply to services provided to a commercial training or coaching center.

3. **Registration and Compliance**: Since you mentioned that you are registered under service tax and your turnover exceeds Rs. 1 crore, you are required to comply with service tax regulations. This includes correctly interpreting the exemptions and levying service tax where applicable.

4. **Verification of Current Regulations**: Service tax rules and exemptions may change over time. It’s crucial to verify the current status of exemptions related to cleaning services provided to educational institutions. This can be done by consulting the latest notifications issued by the Central Board of Indirect Taxes and Customs (CBIC) or seeking advice from a qualified tax consultant.

5. **GST Implementation**: Since the introduction of Goods and Services Tax (GST) in India, service tax has been subsumed under GST. The principles of exemptions and applicability may have been carried forward under GST law. Therefore, understanding the current GST regime is important to determine if any changes have been made to the exemptions previously applicable under service tax.

Given these points, while there was an exemption under service tax for cleaning services provided to educational institutions meeting specific criteria, it’s advisable to verify the current GST regulations to confirm if similar exemptions exist or if there have been any changes in the applicability of tax on such services.