Swach bharat cess

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2015 Dear Expert,

We raised a advance bill of rent of services to our tenant @ 14.00 %

will the revised rate be applicable to us and if yes then how ?

FCMA CS Pardeep Khaneja

FCMA CS Pardeep Khaneja (Expert)
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19 November 2015 If you have already raised invoice and you are receiving payment on or before 29 November 2015. Swachh Bharat cess will not be applicable to those services.

FCMA CS Pardeep Khaneja

FCMA CS Pardeep Khaneja (Expert)
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19 November 2015 As regards Point of Taxation, since this levy has come for the first time, all services (except those services which are in the Negative List or are wholly exempt from service tax) are being subjected to SBC for the first time. SBC, therefore, is a new levy, which was not in existence earlier. Hence, rule 5 of the Point of Taxation Rules would be applicable in this case. Therefore, in cases where payment has been received and invoice is raised before the service becomes taxable, i.e. prior to 15th November, 2015, there is no lability of Swachh Bharat Cess. In cases 5 where payment has been received before the service became taxable and invoice is raised within 14 days, i.e. upto 29th November, 2015, even then the service tax liability does not arise. Swachh Bharat Cess will be payable on services which are provided on or after 15th Nov, 2015, invoice in respect of which is issued on or after that date and payment is also received on or after that date. Swachh Bharat Cess will also be payable where service is provided on or after 15th Nov, 2015 but payment is received prior to that date and invoice in respect of such service is not issued by 29th Nov, 2015.

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