Housekeeping Services and supply of material therein

[Jignesh Shah]

Dear Expert, We are housekeeping service provider. We provide housekeeping services under a contract to various banks, insurance companies etc. As a part of the service, we provide housekeeping material as per the client's requirement. We bill separately for the housekeeping material for some of the clients where we provide some additional material like room freshners etc which is not a part of the contract. While we bill, we charge service tax on the same. The question is - in what category of service tax this bill will fall? We have a confusion whether it is BAS or OCS? We would be obliged to get clarity on the same. Regards.

AI Summary

Housekeeping Service Tax Dilemma: Classify Under Repair & Maintenance or Tax Entire Material Supply? A housekeeping service provider inquired about the appropriate service tax category for billing housekeeping materials supplied under contract to clients like banks and insurance companies. They separately bill additional materials not included in the contract and charge service tax. One expert suggested classifying the service as Repair and Maintenance (MMR) and excluding material sales from taxable service value if acting as a dealer. Another expert advised that since the supply of materials is incidental to the service, the entire amount should be subject to service tax.