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Swach bharat cess

Sagar (Service) (52 Points)

02 March 2015

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

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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.

neetin kumar (asst accountant) (22 Points)
Replied 26 November 2015

thanks

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

1 Like

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 ????