Reverse charge on cleaning services

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s jain

student

38 Points Posted on 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?

Replies (4)

Neljo Davis ACA

Consultant

521 Points Posted on 12 December 2013

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?)

C & D Cleaning Services

22 Points Posted on 20 October 2022

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

Yasaswi Gomes new

Finance

3352 Points Posted on 03 November 2022

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

Aashok Kumar Sharma

Finance/Compliance Consultant

77990 Points Posted on 06 November 2026

Updating this 2013 service-tax thread for GST:

• Housekeeping and cleaning by an agency to a company: forward charge, 18% (SAC 998533). There is no RCM.

• Exception: housekeeping supplied through an e-commerce operator (e.g. Urban Company) by an unregistered provider: the operator pays the tax (Sec 9(5), Notf 17/2017-CT(R)).

• Security services (not cleaning) by a non-body-corporate supplier to a registered body corporate: RCM (Notf 13/2017-CT(R), Entry 14).

• "Manpower supply" vs "cleaning service" no longer matters for GST: both are 18% forward charge.

• TDS: Sec 194C at 1% (proprietor) or 2% (others), threshold Rs 30,000 per bill or Rs 1 lakh a year.

• Labour law: the company is principal employer for the agency's workers. Verify their PF and ESI challans.