How will the Swach Bharat Cess will be calculated on Services. Will it be calculated on all 14% Service tax amount or on services amount
13 Replies
Harsh Singhal
( )
(81 Points)
Replied 02 March 2015
Hey Sagar,
As per new rules introduced in Union Budget 2015, the rate of service tax is raised from 12.36% to 14% therefore removing Education cess and SHEC.
A Swacch Bharat cess @ 2% is also proposed to be introduced on the value of services, which may result in an effective service tax rate of 16%.
It means 2% cess will be charged on 14% Service Tax resulting in total tax of 16%.
Cheers
Rajiv
(Senior Accounts Officer)
(1548 Points)
Replied 02 March 2015
but Swacch Bharat cess @ 2 will be alllicable on which service this is not clear in budget.so please deposit service tax 14% from march 2015.after announcine by government that service with add with Swacch Bharat cess @ 2 then will deposit 2 % extra
satya
(Executive Excise)
(1839 Points)
Replied 07 November 2015
Dear All,
Yesterday 06-Nov-2015 Govt issued a notfn no.22/2015-ST it is clarified that Swachh Bharat Cess 0.5% on value of services only, hence total ST is 14.50% w.e.f:15-Nov-2015.
JAGANATHAN R ACMA, SAP(Fi-Co)
(Manager Accounts and Finance)
(915 Points)
Replied 27 November 2015
yes the tax 14.5% not 16%
CMA P Y S V S VARMA
(cost accountant)
(173 Points)
Replied 27 November 2015
As of Govt Circular Reference the Effective Service tax rate is 14.5% from 15-11-2015
And if service is provided before 15-11-2015 Else invoice,payment made after 15-11-2015 the tax would be 14%
And if service is provided after 15-11-2015 Else invoice,payment made before 15-11-2015 the tax would be 14.5%
satya
(Executive Excise)
(1839 Points)
Replied 27 November 2015
Dear Varma ji,
The above condition apply to Service Provider only (Rule 4 of POT)
for Service Receipient it is not applicable, when you are paying amount is considered (Rule 7 of POT) (service render , bill date not applicable).
for your info pl
Pradip Satani
(M.Com)
(31 Points)
Replied 28 November 2015
Dear Sir
We have received Advance Rent Invoice From owner at 1-11-2015 for the Month of Nov.2015 and he also charge Service Tax 14 % but now he again want to Extra 0.50 % Swachh Bharat Cess
is it tru ????
satya
(Executive Excise)
(1839 Points)
Replied 28 November 2015
Dear pradip,
pl find below for Service Provider purpose Rule 4 of POT Rules;
Imran Ahmad
(Working on GST with HLL & Castrol Distributor )
(118 Points)
Replied 12 December 2015
I think swach barat cess is .5% on service value
Manish Patel
(Student CA Final )
(162 Points)
Replied 13 December 2015
Thanks Sathya sir for the charts.
CA Hitesh Sachdev
(Associate Consultant)
(305 Points)
Replied 29 December 2015
Yeah. It is actually not a cess as the nomenclature suggests. It is applied @ .5% on total value in all the effective rate becomes 14.5%.
Ramesh
(Student)
(90 Points)
Replied 31 December 2015
As of Circular Reference the Effective Service tax rate is 14.5% from 15-11-2015
Swach Bharat Cess is chargeable on service amount.
ie whole 14.5% is charged on total service amount.
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