Whether Housekeeping Expenses attracts Service tax?
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Housekeeping charges attracts service tax
Replies (10)
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)
“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)
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.
Yes it applicable U/S 194C individuals & others 1% & company, Firm @ 2%
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
Yes, attracts.Not covered under negative list.
If housekeeping is given to educational institutions its exempted under mega exemption entry number 9
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.
Thank you very much Ashish Ji and Thanks to all for your replies...
I wanna start housekeeping business plz provide all details. Mainly for contract, billing and texes
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