• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Home
  • DOPT ORDERS 2020
  • FinMin Orders 2020
  • Railway Orders 2020
  • Contact Us

7th Pay Commission Latest news

Central Government Employees News

  • DOPPW Orders
  • 7th Pay Commission
  • Dearness Allowance
  • Dearness Relief
  • CSD Price List
  • Defence
    • Defence Pension
You are here: Home / Income Tax / Swachh Bharat Cess from 15th November 2015, @ 0.5% on all services

Trending
Central Government Holidays for the year 2021 – DOPT “hot”
Holidays List 2021 for Central Government Employees “hot”
AICPIN for the month of October 2020 “hot”
Freezing of Dearness Allowance & Dearness Relief till July 2021
Guidelines for Home Isolation of very mild/pre-symptomatic COVID-19 cases.

Swachh Bharat Cess from 15th November 2015, @ 0.5% on all services

November 12, 2015 pcadmin Leave a Comment

Swachh Bharat Cess from 15th November 2015, @ 0.5% on all services

Swachh Bharat Cess will come into effect from 15th November 2015, at the rate of 0.5% on all services, which are presently liable to service tax. This will translate into a tax of 50 paisa only on every one hundred rupees worth of taxable services. The proceeds from this cess will be used for financing and promoting Swachh Bharat initiatives.

Some doubts are being raised with respect to the levy of Swachh Bharat Cess, such as,-

(i) what would be Swachh Bharat Cess on services where service tax is being paid under the alternative rates of service tax?

(ii) what would be the value of taxable services for computation of Swachh Bharat Cess?

(iii) whether reverse charge mechanism would apply for the levy of Swachh Bharat Cess?

(iv) what would be the point of taxation for Swachh Bharat Cess ?

In this regard, it is clarified that answers to the above queries are in the provisions of sub-section (5) of Section 119 of the Finance Act, 2015 by which all the provisions of service tax as contained in Chapter V of the Finance Act, 1994 have been made applicable to Swachh Bharat Cess. It is, thus, very clear that all the provisions including those related to computation of taxable value, assessment, exemption, payment, penalty applicable to service tax would also apply in respect of Swachh Bharat Cess.

Service tax is presently levied at alternative rates in respect of service provided by air travel agents, life insurance service, service in relation to sale/purchase of foreign exchange including money changing and service by lottery distributors/selling agents, subject to fulfilment of conditions prescribed under the Service Tax Rules. Option has been provided for levy of Swachh Bharat Cess also at alternative rates in respect of the above mentioned services. The alternate rate of Swachh Bharat Cess would be:

Service Tax Liability (at the alternate rate) X 0.5/14.

As regards the taxable value for the levy of Swachh Bharat Cess, it would be the same on which service tax is levied. Swachh Bharat Cess would be calculated on abated value or value arrived at under the Service Tax (Determination of Value) Rules, 2006, as the case may be. For example, the effective Swachh Bharat Cess in respect of services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, having the facility of air–conditioning or central air-heating in any part of the establishment, would be 0.5% of 40% i.e 0.2%. The cumulative service tax and Swachh Bharat Cess liability would be 5.8% (14.5% of 40%) of the total amount charged.

Similarly, a person liable to pay service tax on reverse charge basis would be laible to pay Swachh Bharat Cess also on reverse charge basis. As regards Point of Taxation, since this levy has come for the first time and all services (except those services which are in the Negative List or are wholly exempt from service tax) are being taxed, it is a new levy, which was not in existence earlier. Rule 5 of Point of Taxation Rules would be applicable in this case. Therefore, in case 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 case 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.

Thus, it may be seen that all issues relating to Swachh Bharat Cess are addressed in the Service Tax provisions itself by virtue of the applicability of Chapter V of the Finance Act, 1994 and the rules made thereunder.

Source : PIB

Filed Under: Income Tax Tagged With: Income Tax

Also Read

Compensation of Rs.10 lakhs to all categories of GDS to cover death due to Covid-19 : DoP

Compensation of Rs.10 lakhs to all categories of GDS to cover death due to Covid-19 : DoP

January 11, 2021 By pcadmin Leave a Comment

Compensation of Rs.10 lakhs to all categories of GDS to cover death due to Covid-19 : DoP No. 17-20/2020-GDS Government of India Ministry of Communications Department of Posts (GDS Section) Dak Bhawan, Sansad Marg New Delhi-110001 Date – 08.01.2021 To All Chief Postmasters General Subject … [Read More...] about Compensation of Rs.10 lakhs to all categories of GDS to cover death due to Covid-19 : DoP

Request to reconsider the decision of Freezing DA /DR – Letter to Prime Minister

January 11, 2021 By pcadmin Leave a Comment

Request to reconsider the decision of Freezing DA /DR - Letter to Prime Minister Binoy Viswam Member of Parliament (Rajya Sabha) 116, North Avenue New Delhi – 110 001 Mob: 96057667022 E-mail: [email protected] To Shri Narendra Modi Prime Minister Government of India, New Delhi. … [Read More...] about Request to reconsider the decision of Freezing DA /DR – Letter to Prime Minister

Scheme for payment of pension through e-pension system—Submission of Life Certificate-extension thereof

Submission of Life Certificate-extension – Haryana Govt

January 7, 2021 By pcadmin Leave a Comment

Submission of Life Certificate-extension - Haryana Govt From Additional Chief Secretary to Government Haryana, Finance Department. To 1. All Heads of Departments, Commissioners of Divisions in Haryana. 2. All the Deputy Commissioners & Sub Divisional Officers (Civil) in Haryana. 3. The … [Read More...] about Submission of Life Certificate-extension – Haryana Govt

COVID-19 Vaccine Rollout

COVID-19 Vaccine Rollout

January 7, 2021 By pcadmin Leave a Comment

COVID-19 Vaccine Rollout Dr Harsh Vardhan interacts with Health Ministers of States/UTs to review preparedness and seek their personal leadership in glitch-free Dry Run of 8th Jan IInd nationwide Dry Run to be held in 736 districts across 33 States/UTs tomorrow Dr. Harsh Vardhan requests … [Read More...] about COVID-19 Vaccine Rollout

Revision of interest rates for National (Small) Savings Schemes w.e.f. 01.01.2021

Revision of interest rates for National (Small) Savings Schemes w.e.f. 01.01.2021

January 6, 2021 By pcadmin Leave a Comment

Revision of interest rates for National (Small) Savings Schemes w.e.f. 01.01.2021 SB Order No. 38/2020 e.F.No 113-03/2017-SB(Pt.1) Govt. of India Ministry of Communications Department of Posts (FS Division) Dak Bhawan, New Delhi-110001 Dated: 31.12.2020 To, All Head of … [Read More...] about Revision of interest rates for National (Small) Savings Schemes w.e.f. 01.01.2021

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

All About Pension

All about Pension

Latest DOPT Orders

Disclosure of scores and rankings of the candidates in the recruitment examination – DOPT

Adherence to Guidelines issued by DoPT regarding grant of sanction for prosecution

Calculation of monthly contribution towards cost of Pension payable during foreign service – DOPT

Regularisation of qualified workers appointed against sanctioned posts – Facts/ clarification

Regulating attendance of Central Government employees in offices with staggered timings – DOPT

Latest Finmin Orders

Reimbursement of Travelling Allowance admissible under Daily Allowance : FINMIN

Regulation of Remuneration in case of Contract Appointment of Retired Central Government Employees – FINMIN

Transport Allowance during Nation-wide Lockdown : FinMin

CGEGIS 1980 – Tables of Benefits for the savings fund for the period from 01.10.2020 to 31.12.2020

Clarification regarding queries being received in respect of Special Cash Package equivalent in lieu of LTC – FAQ No.3

Latest Railway Orders

Holidays to be observed in Central Government Offices during the year 2021: Railway Board Order

Grant of disability pension, comprising service element and disability element to pre-2006 disability pensioners

Re-classification of cities for the purpose HRA to Railway Employees

33% of Railways Officers and staff attend office with staggered timings

Provision of laptop to Gazetted Officers in Indian Railways.

Categories

Copyright © 2021