SWACHH BHARAT CESS
SWACHH BHARAT CESS (SBS)@ .5% APPLICABLE W.E.F. 15TH NOVEMBER, 2015
With an intent to make a move towards environment protection, Honorable Finance Minister in Finance Bill, 2015, vide clause 117 of Chapter VI, has proposed ‘Swachh Bharat Cess’ (hereinafter referred to as ‘SBC’) @ 2% on the value of services. Today vide Notification No. 21/2015-ST, Central Government appoints 15th November 2015 as the date of introduction of SBC. Central Government has also issued Notification No. 22/2015-ST to exempt all taxable services from payment of SBC in excess of 0.5% of the value of services.
Therefore w.e.f. 15th November 2015 ‘Swachh Bharat Cess’ @ 0.5% will apply on value of all taxable services or we can say w.e.f. 15th November 2015 effective rate of service tax will be 14.5%.
Here, it is pertinent to mention that SBC will not apply on non-taxable services and services which are exempt from service tax.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: singh@carajput.com or call at 9555555480