Classification of service

House keeping services are in the nature of maintenance services and will ber chargeable to service tax under Management, Maintenance or repairing services. 

Its my opinion.

thanks Mr. Garav,

i was also thinking the same...

but what about pest control charges paid  and operational charges paid for Snackvending machines??

Regarding Vending machine service, i think it will form part of business support services since it is incuded in pantry services which are a partof business support services....

what is your opinion??

I may be wrong, but house keeping service has been described as Cleaning Service in Service Tax Provisions. Hence, in my opinion pestcontrol charges should come under the category of Cleaning Services [Section 65(105)(zzzd)]

“Cleaning Activity” means cleaning, including specialised cleaning services such as disinfecting, exterminating or sterilising of objects or premises, of —

(i) commercial or industrial buildings and premises thereof; or

(ii) factory, plant or machinery, tank or reservoir of such commercial or industrial buildings and premises thereof, but does not include such services in relation to agriculture, horticulture, animal husbandry or dairying;

As far as operational charges paid for Snack vending Machine is concerned it shoul be classified under "Supply of Tangible Goods service" [Section 65(105)(zzzzj)], provided the machine right of effective control & possession has not been transferred.

Where VAT/CST has been paid at the time of acquiring the right to use the machine, it will come under the category of deemed sale, hence Service tax would not be paid in that case.

Hi Prabhat,

in my opinion house keeping also includes the maintenance of assets. and cleaning services only includes cleaning of factory or premises where housekeeping is the composite contract for maintenance of premises and cleaning.

thats why i was of the opinion it will come under the head maintenance services.

Regards

CA Garav Gulati

Gaurav I don't disagree with your classification. The classification depends on what all services are received under the above mentioned housekeeping service. In common usage housekeeping is referred to as cleaning service which denfinitely involves some maintenance services too. Where it involves a combination of different services which cannot be classified specifically, it shall be classified as if they consisted of a service which gives them their essential character.

As the word housekeeping has not been specifically used in Service Tax, classiffication may differ on case to case basis.

This should fall under Cleaning activity under Sec 65(105)(zzzd) on careful reading of the descripttion.

kkm