Cleaning Services Agreement (India)
CLEANING SERVICES AGREEMENT
This Cleaning Services Agreement ("Agreement") is entered into on [Agreement Date] between:
CLIENT (Principal Employer): [Client Name], registered at [Client Address], GSTIN: [Client GSTIN] (the "Client"); and
CLEANING CONTRACTOR: [Contractor Name], registered at [Contractor Address], GSTIN: [Contractor GSTIN], PAN: [Contractor PAN], CLRA Licence No.: [CLRA Licence Number] (the "Contractor").
This Agreement is governed by the Indian Contract Act 1872, the Contract Labour (Regulation and Abolition) Act 1970, the Minimum Wages Act 1948, the Employees' Provident Funds and Miscellaneous Provisions Act 1952, the Employees' State Insurance Act 1948, the Central Goods and Services Tax Act 2017, and the Income Tax Act 1961.
1. SCOPE OF CLEANING SERVICES
1.1 The Contractor shall provide the following cleaning services at the premises located at [Premises Address] (the "Premises"): [Cleaning Scope].
1.2 Frequency and schedule: [Cleaning Frequency].
1.3 The Contractor shall deploy [Number of Staff] trained cleaning staff at the Premises. The Client reserves the right to request replacement of any staff member who does not meet the required conduct or performance standards.
1.4 Cleaning materials and equipment: [Materials Provider]. Where the Contractor provides materials, only professional-grade, non-hazardous cleaning chemicals approved by the Client shall be used.
1.5 The Services shall commence on [Start Date] and continue for [Contract Duration], unless earlier terminated in accordance with this Agreement.
2. SERVICE FEE, GST, AND TDS
2.1 The Client shall pay the Contractor a monthly service fee of ₹[Monthly Fee] (exclusive of GST).
2.2 GST at 18% (SAC 998531) shall be charged additionally. The Contractor shall issue a compliant GST tax invoice by the 5th of each month for the preceding month's services.
2.3 The Client shall deduct TDS at 2% (for a company contractor) or 1% (for an individual/HUF contractor) on the service fee (excluding GST) under Section 194C of the Income Tax Act 1961, deposit it with the income tax authorities, and issue Form 16A to the Contractor quarterly.
2.4 Payment shall be made by the Client within 30 days of receipt of invoice. If the Contractor is registered as an MSME under the MSMED Act 2006, payment shall be made within 45 days of acceptance of services under Section 15 of the MSMED Act 2006; delay shall attract compound interest at three times the RBI bank rate under Section 16.
3. LABOUR LAW COMPLIANCE
3.1 The Contractor shall comply with all applicable labour laws for cleaning staff deployed at the Premises, including: the Contract Labour (Regulation and Abolition) Act 1970 (including maintenance of a valid CLRA licence); the Minimum Wages Act 1948 (paying at least the state-notified minimum wages for cleaning/sweeping employees); the Employees' Provident Funds and Miscellaneous Provisions Act 1952 (12% employee + 12% employer PF contribution); and the Employees' State Insurance Act 1948 (ESI for employees earning up to ₹21,000/month).
3.2 The Contractor shall provide the Client with monthly proof of PF and ESI payment (challan copies) by the 15th of each succeeding month. The Client reserves the right to withhold payments pending receipt of such proof.
3.3 For the purposes of the Contract Labour (Regulation and Abolition) Act 1970, the Client is the 'principal employer' and the Contractor is the 'contractor.' The Client acknowledges its subsidiary liability for wages under Section 21(4) of the CLRA and its right to recover such wages from the Contractor.
4. PERFORMANCE, LIABILITY, AND INSURANCE
4.1 The Contractor shall maintain cleaning standards consistent with a professional cleaning service. The Client may inspect the Premises and issue a deficiency notice specifying the cleaning failures. The Contractor shall rectify the deficiencies within 24 hours of notice.
4.2 The Contractor shall be liable for damage to property at the Premises caused by the negligence of its cleaning staff, up to a maximum of 3 times the monthly service fee per incident, subject to prior written notice and evidence of damage.
4.3 The Contractor shall maintain valid public liability insurance covering third-party bodily injury and property damage at the Premises. Proof of insurance shall be provided to the Client on request.
5. TERMINATION AND GOVERNING LAW
5.1 Either party may terminate this Agreement by giving [Notice Period] written notice to the other party.
5.2 The Client may terminate this Agreement immediately upon written notice if the Contractor: (a) fails to maintain a valid CLRA licence; (b) commits a material breach of labour law compliance obligations; or (c) fails to rectify cleaning deficiencies within 48 hours of a second deficiency notice in the same month.
5.3 On termination, the Contractor shall remove all cleaning equipment and materials from the Premises within 3 days. The Client shall pay all outstanding invoices up to the date of termination.
5.4 This Agreement is governed by the laws of India and the State of [Governing State]. Disputes shall be resolved by arbitration under the Arbitration and Conciliation Act 1996, with the seat at [Governing State].
5.5 This Agreement shall be executed on non-judicial stamp paper as required under the Indian Stamp Act 1899 and applicable stamp laws of [Governing State].
Client (Principal Employer)
________________
Signature
Cleaning Contractor
________________
Signature
What Is a Cleaning Services Agreement (India)?
A Cleaning Services Agreement in India engages an independent contractor to supply services and records the scope of work, fees, timetable and ownership of any deliverables.
In India, the cleaning services industry operates under a contract labour model — the cleaning company deploys its workers at the client's premises under the client's supervision, making the arrangement subject to the Contract Labour (Regulation and Abolition) Act 1970 (CLRA). The CLRA imposes specific obligations on both the contractor (cleaning company) and the principal employer (client): the contractor must hold a CLRA licence; the client must register as a principal employer; and both must confirm that deployed workers receive their statutory entitlements under the Minimum Wages Act 1948, EPF Act 1952, ESI Act 1948, and Payment of Gratuity Act 1972.
The Agreement is also subject to GST (cleaning services attract 18% GST under SAC code 998531) and TDS under Section 194C of the Income Tax Act 1961 (2% on payments to corporate contractors, 1% to individuals/HUFs). A well-drafted cleaning services agreement captures all these dimensions to protect both parties from regulatory exposure and commercial disputes.
The legal framework governing the Cleaning Services Agreement (India) in India draws on several key statutes and regulatory bodies. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Parties executing a Cleaning Services Agreement (India) in India should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Indian Contract Act, 1872 sets the foundational requirements.
When Do You Need a Cleaning Services Agreement (India)?
A Cleaning Services Agreement is needed whenever a business, commercial establishment, housing society, or institution engages an external cleaning company on an ongoing basis for facility maintenance.
You need this agreement when engaging a commercial cleaning company for regular office cleaning — daily janitorial services, washroom maintenance, pantry cleaning, and common area upkeep. A written agreement prevents disputes about scope, frequency, quality standards, and responsibility for materials.
You need this agreement when engaging a cleaning contractor for a hotel, hospital, factory, or large commercial complex where the cleaning company deploys multiple workers. In such cases, CLRA compliance documentation is essential and the agreement should require the contractor to produce monthly PF/ESI payment proofs.
You need this agreement when awarding a cleaning tender in a residential housing society or commercial complex — formalising the scope (common areas, lifts, stairwells, external areas), the monthly fee, and the Society's rights to inspect and terminate.
You need this agreement when engaging a specialist cleaning company for industrial cleaning, deep cleaning, or post-construction cleaning — where the scope, chemicals, and safety protocols must be precisely specified.
You need this agreement whenever TDS under Section 194C applies to cleaning payments — the agreement provides the legal basis for the contractor relationship that triggers TDS obligations.
Parties in India should prepare a Cleaning Services Agreement (India) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Cleaning Services Agreement (India)
A well-drafted India Cleaning Services Agreement should contain the following essential elements.
Party Details: Full legal name, address, GSTIN, and PAN of both the client and the cleaning service provider. For corporate clients, the establishment's CLRA registration number.
Scope of Cleaning Services: Detailed description of the areas to be cleaned, types of cleaning tasks (sweeping, mopping, dusting, sanitising, glass cleaning, washroom cleaning, waste removal), and any specialist services (deep cleaning, carpet shampooing, facade cleaning). Exclusions from scope should be clearly listed.
Frequency and Staffing: Number of cleaning visits per day/week/month, timing of cleaning (pre-shift, post-shift, continuous), and the number of cleaning personnel to be deployed. Named supervisor or team lead for the deployment.
Materials and Equipment: Specification of which party provides cleaning chemicals, equipment, and consumables. Quality and safety standards for chemicals used (MSDS — Material Safety Data Sheet requirements).
Fee and GST: Monthly fee (₹) excluding GST, applicable GST rate (18%, SAC 998531), invoicing schedule, and payment terms. TDS deduction at 2% under Section 194C acknowledged.
Labour Law Compliance: Obligation on the cleaning company to comply with CLRA, Minimum Wages Act, EPF Act, ESI Act, and Payment of Gratuity Act; produce monthly PF/ESI payment proofs; and maintain valid CLRA licence.
Performance Standards and Remedies: Defined quality standards, inspection rights of the client, and remedies for non-performance (repeat service, fee deduction, termination).
Termination: Notice period (typically 30 days), immediate termination for serious breach, and handover obligations.
Additional compliance elements for a Cleaning Services Agreement (India) used in India include: Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Forms-legal.com provides this template as a starting point for India-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Cleaning Services Agreement (India) (India) [Legal document template]. Forms Legal. https://forms-legal.com/india/business/services/cleaning-services-agreement-india
"Cleaning Services Agreement (India) (India)." Forms Legal, 2026, https://forms-legal.com/india/business/services/cleaning-services-agreement-india.
@misc{formslegal-cleaning-services-agreement-india,
author = {{Forms Legal}},
title = {Cleaning Services Agreement (India) (India)},
year = {2026},
howpublished = {\url{https://forms-legal.com/india/business/services/cleaning-services-agreement-india}},
note = {Free legal document template. Based on Indian Contract Act, 1872}
}
Frequently Asked Questions
Cleaning service companies operating in India must comply with a range of central and state laws governing their business operations, employment practices, and tax obligations. The key legal requirements are as follows. Shops and Establishments Act: Cleaning service companies operating from a commercial office or depot must register under the applicable state Shops and Establishments Act (e.g., the Maharashtra Shops and Establishments Act 2017, the Karnataka Shops and Commercial Establishments Act 1961). This registration is the foundational business licence required for operating a commercial establishment. Contract Labour (Regulation and Abolition) Act 1970 (CLRA): This is perhaps the most important central labour law applicable to cleaning service providers. Cleaning companies typically deploy their workers at clients' premises — making them 'contractors' under the CLRA, and the client becomes the 'principal employer.' The cleaning company (as a contractor with 20 or more contract labourers) must obtain a licence from the appropriate labour authority under the CLRA. The client (principal employer deploying 20 or more contract workers) must register under the CLRA.
A well-drafted cleaning services agreement in India should protect both the service provider and the client by addressing all key commercial, operational, and legal aspects of the cleaning engagement. Based on the Indian Contract Act 1872 and sector-specific laws, the following provisions are essential. Scope of work: A detailed description of the cleaning services to be provided — the specific areas to be cleaned (office floors, washrooms, common areas, cafeteria, external areas), the type of cleaning (general cleaning, deep cleaning, specialised cleaning), the cleaning standards to be maintained, and any specific tasks included or excluded. Vague scope clauses are the primary cause of disputes in cleaning contracts. Frequency and schedule: The frequency of cleaning (daily, weekly, fortnightly), the time window for cleaning services (before office hours, during office hours, after hours), and special cleaning events (post-construction cleaning, pre-audit deep cleaning). The agreement should specify the number of cleaning personnel deployed at the premises. Materials and equipment: Whether the cleaning company provides all materials (cleaning chemicals, mops, vacuum cleaners, floor scrubbers) and equipment, or whether the client provides them. If the contractor provides materials, the agreement should specify quality standards and prohibition on bringing hazardous chemicals.
Payments to cleaning service providers in India are subject to Tax Deducted at Source (TDS) under Section 194C of the Income Tax Act 1961, which applies to 'payments to contractors and sub-contractors.' Cleaning services — being services provided under a 'contract for carrying out any work' — fall within the scope of Section 194C. TDS rates under Section 194C: (a) 1% if the payment is to an individual or a Hindu Undivided Family (HUF) cleaning contractor; (b) 2% if the payment is to any other person (company, LLP, partnership firm, etc.) providing cleaning services. The TDS must be deducted at the time of credit to the contractor's account or at the time of payment, whichever is earlier. Threshold for TDS deduction: TDS under Section 194C is not required if: (a) the payment to the contractor does not exceed ₹30,000 in a single contract; and (b) the aggregate of all payments to the same contractor during a financial year does not exceed ₹1,00,000. If either threshold is exceeded, TDS applies on the entire amount from the beginning of the financial year. PAN requirement: If the cleaning contractor fails to furnish their PAN to the person making payment, TDS must be deducted at the higher rate of 20% under Section 206AA of the Income Tax Act 1961. No TDS on GST component: Under CBDT Circular No. 1/2014, TDS under Section 194C is to be deducted only on the service fee component, excluding the GST (Central Tax, State Tax, Integrated Tax) charged in the invoice.
Under the Contract Labour (Regulation and Abolition) Act 1970 (CLRA), a company or establishment (the 'principal employer') that engages contract labour — including cleaning staff deployed by a contractor — has several obligations that run alongside the contractor's own obligations. These obligations are important for clients of cleaning service companies to understand. Registration: Under Section 7 of the CLRA, every principal employer who employs 20 or more contract labourers must register as a principal employer with the appropriate government labour authority (central government for railways, mines, etc.; state government for most commercial establishments). A certificate of registration is issued in Form II. Failure to register is an offence under Section 23 of the CLRA. Welfare and health facilities: Under Sections 16–19 of the CLRA (read with the Contract Labour (Regulation and Abolition) Central Rules 1971), if the contractor fails to provide canteen, rest rooms, washing facilities, first aid, and drinking water for contract workers at the worksite, the principal employer is obliged to provide these facilities and recover the cost from the contractor. Subsidiary liability for wages: Under Section 21(4) of the CLRA, if the contractor fails to pay wages to contract workers or makes short payment, the principal employer is jointly and subsidiarily liable for the unpaid wages. The principal employer has the right to recover such wages from the contractor's dues.
A Cleaning Services Agreement (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Indian Contract Act, 1872 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of India has jurisdiction over disputes arising from this type of document, and Registrar of Companies (ROC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
Found an error? Let us knowRelated Documents
You may also find these documents useful:
Service Agreement (India)
A comprehensive service agreement under the Indian Contract Act 1872, GST Act 2017, and Arbitration & Conciliation Act 1996. Covers scope of services, GST-inclusive fees, SLA, confidentiality, IP ownership, liability cap, force majeure, and MSME-friendly payment terms.
Security Services Agreement (India)
A security services contract under the Private Security Agencies (Regulation) Act 2005 and Indian Contract Act 1872. Covers guard deployment, PSARA licence requirements, training standards, liability, GST fees, and termination.