TaxTMI 
TaxTMI 
cleaning activity service
30 Sep 2010 
2 Replies 
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Taxability of cleaning services hinges on whether the service receiver is a government entity or a taxable 'person'.
Whether cleaning services to the railways are taxable under Cleaning Activity Service is contested: one position treats the railways as a commercial entity making such services taxable and recoverable by providers under tender terms; the opposing position argues Indian Railways is part of the government and not a "person" for service tax purposes, so levy on services received by the government is effectively ineffectual, while government-owned companies remain taxable entities. (AI Summary)
Whether cleaning services to the railways are taxable under Cleaning Activity Service is contested: one position treats the railways as a commercial entity making such services taxable and recoverable by providers under tender terms; the opposing position argues Indian Railways is part of the government and not a "person" for service tax purposes, so levy on services received by the government is effectively ineffectual, while government-owned companies remain taxable entities. (AI Summary)
Dear sir, Pl share your expert opinion on the following question. Whether services provided to railways for cleaning of platform,FOBs,urinal, Lavatories,waiting Halls, Waiting Rooms,Dormitories,rag picking on all tracks,disposal of garbage falls under "CLEANING ACTIVITY SERVICE" AND a taxable service in the hand of the service provider ????? To my opinion the above services do not fall under Cleaning activity service. Railway is not a commercial or Industrial organisation and if the above service falls under the"CLEANING ACTIVITY SERVICE" then also it is not taxable.pl share your expert opinion.