Colony maintenance Services in a factory

[Asked by Guest]

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

Manpower supply: where employer controls labour, reverse charge applies and the service receiver is liable for service tax.
Classification depends on who controls the labour: if the contractor controls and charges per work completed the service is an Other Than Negative List service with the service provider liable for tax and no reverse charge or abatement; if the company controls and supervises the labour the arrangement is a Manpower Supply and the service receiver may be liable under the Reverse Charge Mechanism, so the contract's terms (billing on man-days, supervision, statutory payments) must be examined.