TaxTMI 
TaxTMI 
Sir,
We have given contract for removing garbage and other unused material to one party from our premises
In his invoice he has mentioned Tractor charges and labour charges on day and qty basis.
The service fall under which category...
Service Tax under which Category ?
03 May 2016 
7 Replies 
1497 Views Asked by
Service classification: garbage removal treated as taxable cleaning service and tractor hire as right-to-use tangible goods, supplier liable.
Labour retained under the contractor's supervision is taxable as a contractual service within the Other Than Negative List with the contractor liable for service tax; tractor charges constitute the Right To Use Of Tangible Goods and are likewise taxable as services. Cleaning for removal of garbage should be classified as a taxable cleaning service rather than a manpower supply, neither component attracting reverse charge in the described facts, and the supplier's combined taxable services are subject to the supplier threshold exemption. (AI Summary)
Labour retained under the contractor's supervision is taxable as a contractual service within the Other Than Negative List with the contractor liable for service tax; tractor charges constitute the Right To Use Of Tangible Goods and are likewise taxable as services. Cleaning for removal of garbage should be classified as a taxable cleaning service rather than a manpower supply, neither component attracting reverse charge in the described facts, and the supplier's combined taxable services are subject to the supplier threshold exemption. (AI Summary)