"Mohit (27) allegedly killed Mamta with a knife," police said, adding the accused was upset with the singer for not giving sufficient money to him and also abusing him.
Police also arrested the accused's friend Sandeep for disposing of the body.
Mohit had been working for Mamta for the past three years. He used to arrange vehicles for the singer to perform at functions, they said.
On January 14, the two had a verbal duel after Mohit reached Mamta's house late. They were supposed to go to Gohana for an event, police said.
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The singer's body was found from Rohtak district on January 18.
Mohit, in his earlier statement, had told police that they were on their way when they came across a car at Lahli village. He said that Mamta joined its occupants, saying that she was going with her friend to Kalanaur and would join them in Gohana soon.
A 22-year-old Haryanvi singer was shot dead at Chamrara village in Haryana's Panipat district last year.