Whether Housekeeping Expenses attracts Service tax?
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Housekeeping charges attracts service tax
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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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