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Swachh bharat cess @ 0.5% leviable

Jitendra Panwar, FCA (Tax Practitioner ) (641 Points)

06 November 2015

Swachh Bharat Cess @ 0.5% leviable with effect from 15-11-2015 on all taxable services. It was proposed in budget 2015-16 that Swachh Bharat Cess will be levied @ 2%. However currently government start imposing this cess @ 0.5% (Half Percent only). This could be increased upto 2% at later if Government wants

Notification No. 21/2015-Service Tax Dated 06-11-2015

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15 Replies

knrvarma (Professional) (59 Points)
Replied 06 November 2015

Swachh Bharat Cess @ 0.5% means now service tax 14.5%

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Subramanya (in practice) (109 Points)
Replied 06 November 2015

What about credit of s.b. cess on input services?? Ccr 2004 needs amendment to that extent that such sb cess can be utilized for payment of sb cess?

CA SACHIN (practice) (115 Points)
Replied 06 November 2015

It means while abatement is calculated on 14.5%?

sudhakar yadav (MBA) (25 Points)
Replied 07 November 2015

It's applied all city and type services India..

sudhakar yadav (MBA) (25 Points)
Replied 07 November 2015

I want to whether it will be applied in all city and types of service provider and company of India. Can anyone let me what will be increase rate for all different type of companies and service providers. Plz reply....

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Faiz Ahmed Bachnak (Accountant) (44 Points)
Replied 07 November 2015

For cleanliness we need to aware people. People will be awared if they are educated. Now there is no education cess but have only swacch cess. How the object will be achieved? Education cess would have been 3% of 14% i.e. 0.42%. Whereas swacch cess is 0.5%. Still few people says it is only 0.5%. Nobody but poor are affected because of these additional taxes. Rather than increasing taxes, govt should think over best utilisation of existing taxes. The only option I see for achieving the goal of Swacch Bharat Abhiyaan is to fine culprits including cleaning workers and employ more workforce in cleaning dept.

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RAYUDU GK (Student CA IPC / IPCC) (21 Points)
Replied 07 November 2015

EC and SHEC cess should be calculated on 14.5% ?

Ram Avtar Yadav (Learner) (21 Points)
Replied 07 November 2015

It is on tax value or taxable service value....it can be claim with cenvat or not ...plz help

devaraj (cfo) (21 Points)
Replied 07 November 2015

No. education cess is withdrawn already and no need to charge education cess now

Jitendra Panwar, FCA (Tax Practitioner ) (641 Points)
Replied 07 November 2015

Dear All I want to put my view/review as under:

1. Edu Cess /SHE cess already withdrawn in Excise from 1-3-2015 and service tax from 01-06-2015. So no need to charge these cess in bills.(CBEC Clarification)

2. Swachh Bharat Cess would be calculated seperately on Taxable value of Services. For Example if a CA/CS/CWA raised bill of Rs.1000/- then Service Tax liability Would be Rs.140/- and Swachh Bharat Cess would be Rs.5/-.

3. Swach Bharat Cess will applicable on every Bill/Invoice of taxable service by any person in india (except J & K).

4. Cenvat Credit: At present in the absense of any provision the Swachh Bharat Cess is not CENVATABLE. Hope CBEC would issue Circular/Notification in this regard.

The above are legal perspectives.

So far cleaness of India is concerned, in my personal view the Swachh Bharat Cess is only a revenue Source to Govermnet and no gaurantee to clean india. The matter is personal initiation of citizens. Whether they want to live with cleaness or not???

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Shrikrishna Barure (Student) (22 Points)
Replied 08 November 2015

There is no amendment in the Cenvat Credit Rules, 2004 regarding availment and utilisation of SBC. In the absence of the same, credit would not be admissible. (Are we really moving toward GST regime where it is claimed that there would be no cascading effect of taxes and full credit would be allowed) One can expect suitable amendment is brought in Cenvat Credit Rules, 2004 to provide for availment and utilisation of SBC. If not brought, this would be very trade regressive measure. In the absence of any notification providing for availment of credit of SBC, it would directly add to the cost of product and services. If you are manufacturing excisable goods, you will have to factor in additional cost of 0.5% on all services received by you in the course of manufacturing. Similarly, if you are providing taxable service, SBC paid on all your input service become cost. If you are exporter of goods or service, you will not be entitled for refund of SBC

CS Arjun Rajagopal (B.com, ACS) (1056 Points)
Replied 08 November 2015

Can any body clarify what is new service tax rate? Is it 14.5 or 14.07?

khushbu (management trainee) (25 Points)
Replied 08 November 2015

Dear Ram SBS will be levied on taxable value.. No clarity is given for availing credit of SBS paid

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 10 November 2015

For availing Cenvat credit of Swach Bharat Cess, there would be amendment in cenvat credit RUles 2004 to allow such cenvat credit. TIll date, government has not amended cenvat Credit RUles 2004. It means that Credit of Swach Bharat Cess SHOULD NOT BE available as Cenvat Credit. However, as per notification no.22/2015-Service Tax, SBC shall be treated as Service Tax for the purpose of Chapter V of Finance Act 1994 and therefore, SBC collected on output services can be paid by utilising cenvat credit of Service tax input credit (14%) or by cash.

Education cess and SHEC has already abolished w.e.f 1st June, 2015