Reverse charge on cleaning services

s jain (student) (67 Points)

12 December 2013  

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?