Swatch bharat cess

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2016 IF
SBC OUTPUT -0.5% -2000
(-)SBC INPUT - 0.5% -1000 (CENVAT)
BALANCE PAYABLE - 1000
IS IT CORRECT ENETRY? LET ME KNOW.

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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24 January 2016 Swatch Bharat Cess is an additional levy @0.5 % on Services Rendered and / or Received. The same is payable only in Cash i.e through GAR - 7 Challan [e-payment through bank]. Further SBC is not CENVATable and hence no Input credit can be taken. In your illustration you are liable to pay the entire Rs.2,000/- and the SBC of Rs.1,000/- you have paid on services received for rendering output services should be charged directly as expenses to P & L Account.