Sawch bharat cess

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pooja Garg (Querist)
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08 June 2016 Sir another confusion,
sawch bharat cess as a expenses booked in our books if we take service and we received swc from service receiver than we paid to govt.

There are 2 times collect swc by the govt. On same service

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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08 June 2016 When one receives services from any service provider, the recipient pays service tax (which is available as input credit) and SBC not available - hence booked as expenses. When you bill somebody for services rendered, it is not the same service you received, but some other service being rendered. Hence there is no double levy of SBC. Only you do not get credit for the Input SBC paid.

Earlier, before Cenvat Credit was introduced in mid 1980'2 there used to be aggregation of duty in various transactions that the final consumer used to pay about 70% of the cost as excise duty and Sales tax.

Now a small portion is being increased this way. The new levy Krishi Kalyan Cess is again available as Input credit.