In today’s scenario,all are discussing about SBC which was launched by Prime minister, Narendra Modi with the aim to improve the sanitation in rural and urbn areas so that the overll quality of life improves. Since its launch govt. has made substantial expenditure on the programme. With the objective to finance and Promote swachh Bharat initiatives, the central Government has decided to impose an additional cess called the “SWACHH BHARAT CESS (SBC)”. It is a tax levied by Central Government on the value of all Taxable Services. The cess is levied at the rate of 0.5% therefore the new rate of service tax inclusive of SBC will be 14.50%. SBC is applicable on services which are provided on or after 15th Nov. 2015. Computation of SBC will be done at the same manner as service tax. It will not be levied on services which are fully exempt from service tax or which lie in the negative list of services. It is charged separately on the invoice.
However SBC will not be included in CENVAT Credit chain. So the taxpayer cannot avail the benefit of CENVET credit by paying SBC. It results in cascading effect which increasing the burden of tax on Individual.
Apart from above ,then here a big question arise why we need SBC? Do we really need it?
From this article I wanna give you answer of these questions which comes in any individual’s mind. Everybody wants to live in a clean country and no doubt Swachh Bharat Abhiyaan is an excellent initiative by Government to make India clean.
Here Some objective of introducing SBC:-
1. Through this initiative Govt. wants to change People’s attitude towards sanitation and create awareness among people.
2. Eliminate open defecation by constructing toilets for households and Communities.
3. Eradicate Manual scavenging.
4. Introduce modern and scientific municipal solid waste management practices.
5. Enable private sector participation in the sanitation sector.
6. For Developing rural areas by Providing sanitation facilities.
7. For Prevention of Spreading Disease Like Cholera, diarrhea, typhoid etc.
8. For Better Economy. (Indian Economy suffers great loss due to poor hygienic and sanitation in our country).
But Cleanliness or clean India is not only the sole objective of Swachh Bharat Mission.
There are Some Financial Benefits of Introducing SBC:-
1. Tourism:- Tourism can generate employment for upto 5% of India’s population.The biggest limitation for India to Promote tourism is cleanliness. Foreign tourists are very particular about hygiene and cleanliness. Besides employment, Tourism will help in bring foreign money to india which will boost India’s GDP.
2. Health:- Swachh Bharat Abhiyaan will have a positive impact on India’s Health care centre. As per Reports by WHO, due to unhygienic Condition in India there is huge loss in term of thousands every year to each Indian which is a big financial loss. So SBC help in reduce this loss.
3. Clean Technology:- It involves use of bio-degradable fuel and products. New technology bring new sets of employment opportunities like in case of information technology. It will lead to new skill development for innovation thus helps in generating new employment opportunities for India’s youth. So swachh bharat abhiyaan should not be linked only to cleanliness and hygiene but it has larger objective of putting india in the league of nations working towards technological development in India.
4. Individual Productivity:- Swachh bharat abhiyaan will lead to healthy india which in turn increase productivity of Indians. High Productivity means high earning. An healthy nation can easily become developed economy.
5. Foreign Direct Investment (FDI):- As current situation says India desperately need FDI so Swachh Bharat Abhiyaan helps in to attract FDI.
In Conclusion, I would say that Swachh bharat abhiyaan need support of every individual. We should not think that its not for me. It will be very beneficial step towards economic growth
CAclubindia
