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Housekeeping charges attracts service tax

Sriram (CMA Final) (178 Points)

07 February 2014

Whether Housekeeping Expenses attracts Service tax?

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Ms. Sia Raman (Chartered Accountant- Working Professional) (198 Points)
Replied 07 February 2014

The following service is taxable according to the Service Tax act

“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;

(Section 65(24b) of the Finance Act, 1994)

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Ms. Sia Raman (Chartered Accountant- Working Professional) (198 Points)
Replied 07 February 2014

“Taxable Service” means any service provided or to be provided to any person, by any other person, in relation to cleaning activity; (Section 65 (105) (zzzd) of the Finance Act, 1994)

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ashish (CA) (79 Points)
Replied 07 February 2014

It is important to consider reverse charge -

a - Mapower services - if the housekeeping services involve only of supplying labour for the services. The it will be taxed acoordingly and the service provider will have to pay 25% of the ST amt.
b - Works contract Services - if the services include material + labour, it will come under "Work Contracts" and the entire liability is on the service receiver.

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manikandan.J (Accounts Manager) (363 Points)
Replied 07 February 2014

Yes it applicable U/S 194C individuals & others 1% & company, Firm @ 2%

Rinkoo sharma (Asstt. Manager) (37 Points)
Replied 07 February 2014

Yes as of applying of reverse charge machanism it 25% paid by service provider and 75% paid by service receiver if provider provide labour only

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VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 07 February 2014

Yes, attracts.Not covered under negative list.

shivansh (-) (59 Points)
Replied 07 February 2014

If housekeeping is given to educational institutions its exempted under mega exemption entry number 9

sudarshan (CA) (745 Points)
Replied 08 February 2014

cleaning services- work under control and supervision of service provider so it may not be fit into manpower : it is essentially a service usage of material is incidental , so it may not fit into works contract also.