Housekeeping Services and supply of material therein, Service Tax

[Jignesh Shah]

Dear Expert, We are housekeeping service provider. We provide housekeeping services under a contract to various banks, insurance companies etc. As a part of the service, we provide housekeeping material as per the client's requirement. We bill separately for the housekeeping material for some of the clients where we provide some additional material like room freshners etc which is not a part of the contract. While we bill, we charge service tax on the same. The question is - in what category of service tax this bill will fall? We have a confusion whether it is BAS or OCS? We would be obliged to get clarity on the same. Regards.

Posts / Replies

[Rama Krishana]

Generally housekeeping services are in the nature of maintenance service and therefore to be classified as Repair and Maintenance (MMR) service. Regarding supply of some material, if you are purchasing and selling in the capacity of dealer, independent to service, the same should not be included in the gross value of taxable service. But, factually, to what extent are you able to prove, it is a question of fact.

[Ganeshan Kalyani]

The supply of cleaning material in incidental to housekeeping service and therefore should form part of consideration and accordingly service tax shall be levied on entire amount.