Taxability of cleaning & disposal of garbage activity

[Sankar Bagchi]

We are engaged in cleaning and safe disposal of garbage from the ship at Mumbai Port. Is the cleaning taxable?

[Baalu Radhakrishna]

"cleaning activity" means cleaning, including specialised cleaning services such as disinfecting, exterminating or sterilising of objects or premises, of— (i) commercial or industrial buildings and premises thereof; or (ii) factory, plant or machinery, tank or reservoir of such commercial or industrial buildings and premises thereof, but does not include such services in relation to agriculture, horticulture, animal husbandry or dairying; Cleaning and safe disposal of garbage from ships anchored in ports are not covered under 'cleaning activity" which is a taxable service. If you carefully read the definition as provided above,the service what you are providing i.e cleaning the ship and disposal of waste outside the ship does not fall under the taxable service. Hence it is deemed to be exempt for the time.

AI Summary

Cleaning activity definition excludes shipboard garbage removal, so ship cleaning and waste disposal are not taxable. The definition of cleaning activity covers cleaning of commercial or industrial buildings, factories, plants, machinery, tanks or reservoirs and excludes agricultural services; cleaning ships and disposing of shipboard garbage do not fall within those categories and therefore are not taxable as cleaning activity, being treated as exempt for the time.