Colony maintenance Services in a factory

[Aitha RajyaLakshmi]

How can the Colony maintenance Services in a Factory be classified?

Currently we have classified as man power Supply and paying Service Tax on RCM basis though the Service provider is an SSP and credit Service Tax paid is not eligible. It becomes cost to the Company.

AI Summary

Clarifying Service Tax on Factory Colony Maintenance: Labor vs. Manpower Supply Under Reverse Charge Mechanism (RCM) A discussion on the classification of colony maintenance services in a factory regarding service tax. The initial query suggests classifying it as manpower supply, with service tax paid on a reverse charge mechanism (RCM) basis, which increases company costs. An expert clarifies that maintenance is labor, not manpower supply, and should not be under RCM. If labor is under company control, it qualifies as manpower supply, making the company liable for service tax under RCM. The contractor provides manpower only, with billing based on man-days, fulfilling the manpower supply definition, thus requiring service tax payment by the company.