IS Kakar (B.Com) (109 Points)
20 May 2015Hi
As the new service tax rate of 14% comes into effect from 1st June 2015. I would like to know if swach bharat cess will be applicable on new service tax rate ? If yes then on which services ?
If swach bharat cess is not applicable then only flat rate of 14% is to be charged on the services provided ?
Thanks & Regards
Deepak Gupta
(CA Student)
(15922 Points)
Replied 20 May 2015
1. Swachh Bharat Cess is not yet notified by the Central Govt.
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2. The rate of service tax w.e.f. 01.06.2015, will be 14% (including cesses).
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3. As and when S.B. Cess gets notified, then rate will be 14% + 2% = 16%.
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4. As per Sec. 119(3) of the Finance Act, 2015, “The Swachh Bharat Cess leviable under sub-section (2) shall be in addition to any cess or service tax leviable on such taxable services under Chapter V of the Finance Act, 1994, or under any other law for the time being in force.”
amiya
( )
(114 Points)
Replied 25 May 2015
Dear :|)eep @ k Gupt/\
Yes u r right
FM distinctly said
" There shall be levied and collected in accordance with the provisions of this Chapter, a cess to be called the Swachh Bharat Cess, as service tax on all or any of the taxable services at the rate of two per cent. on the value of such services for the purposes of financing and promoting Swachh Bharat initiatives or for any other purpose relating thereto."
Deepak Gupta
(CA Student)
(15922 Points)
Replied 25 May 2015
Ed. cess and S.H.E. cess were levied on the amount of service tax whereas S.B. cess will be levied on the value of taxable services.
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Sec. 119(2) of the Finance Act, 2015, “There shall be levied and collected in accordance with the provisions of this Chapter, a cess to be called the Swachh Bharat Cess, as service tax on all or any of the taxable services at the rate of two per cent. on the value of such services for the purposes of financing and promoting Swachh Bharat initiatives or for any other purpose relating thereto.”
amiya: Kindly do not change the content of your reply, after others clarification. Now, the aforesaid reply seems needless.
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