Reverse charge on cleaning services

2892 views 4 replies

URGENT!!!!!!!!!

Reverse charge on cleaning & house keeping contract

Case: M/s ABC Ltd. has employed house-keeping agency M/s TIP-TOP (Proprietor) for cleaning office premise. As per the terms of contract, M/s TIP-TOP is required to clean all furniture and office premises daily. During discussion between M/s ABC Ltd. and M/s TIP-TOP it was agreed that 7 persons will be deployed for carrying out the above job. Each of the person would be paid Rs.10,000/- per month. Thus the total consideration for carrying out the above work is Rs.70,000/- per month. Further it is also decided that, Mr  Y will supervise the work of M/S TIP-TOP. M/s ABC Ltd has approached you for advise whether service tax is payable under reverse charge by them and if yes under which category?

Replies (4)

If the agreement provides for supply of labour by M/s.TIP TOP to M/s ABC Ltd, the contract will come under “Supply of manpower” (Supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.) 75% of service tax liability is for service receiver. (Role of Mr.Y is not clear; Is Mr.Y is employee of Ms.TIP TOP or Ms.ABC Ltd, or Independent supervisor?)

Great content! This is exactly the sort of thing I was looking for. Thanks for your help 🙂

 

 

Chexk rcm applicability. There isbonly gst now and vat, service tax anx etc are viped out

Interesting discussion. In many cases, the classification between manpower supply and housekeeping services really changes the tax treatment. Also, while looking into maintenance and cleaning solutions recently, I came across hoa pressure washing services las vegas they seem to handle large community and HOA cleaning work quite professionally.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details