TAXABILITY

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..... TAXABILITY
Query (Issue) Started By: - SANJAY JAIN Dated:- 2-6-2011 Last Reply Date:- 3-6-2011 Service Tax
Got 2 Replies
Service Tax
We are engaged in cleaning and safe disposal of sewer . Is the cleaning taxable? Reply By pradeep khatri: The Reply: Dear Sir, Cleaning or disinfecting of sewage tanks/reservoirs used by industrial/commercial establishments are taxable. But, if, such .....

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..... services pertains to residential premises, then, not taxable. As per section 65 (24b) of the finance Act, 1994, "Cleaning Activity' means: "Cleaning, including specialized cleaning services such as disinfecting, exterminating or sterilizing of objects or premises, of - * Commercial or industrial buildings and premises thereof; or * factory, plant or machinery, tank or reservoir of such comme .....

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..... rcial or industrial buildings and premises thereof, but does not include such services in relation to agriculture, horticulture, animal husbandry or dairying." The above definition contains the following important features: * Cleaning activity means cleaning i.e. to say all types of cleaning is covered. * Specialized cleaning services such as disinfecting, exterminating or sterlizing are als .....

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..... o covered by the definition. * A cleaning or specialised cleaning must be of objects or premises. * such premises mist be commerical or industrial building or premises or factory, plant or machinery, tank or reservoir of such commercial or industrial building and premises. * Cleaning activity relating to agricultural, horticultural and animal husbandry and diarying are not with in the scope .....

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..... of the definition. Reply By Alok Kumar: The Reply: Dear Mr. Sanjay, In my opinion in case the said services are provided in relation to non commercial or non-industrial purposes then your services will not be covered by the said definition as provided in the relevant Finace Act. please check whether the subject matter of cleaning activities are: "Commercial or Industrial bulidings or their pr .....

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..... emises ". thanks, Alok Kumar
Discussion Forum - Knowledge Sharing .....

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