Sawchh bharat cess

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Dipenti Pandya (Querist)
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24 May 2016 We are Builders, while paying VAT or TDS , we are usually include swachh bharat cess in while calculating Works Contract value for MVAT. Till now no notification has come regarding this,But is it correct to pay Tax on Sawchh bharat cess at the time of paying VAT.

Example :
Works Contract Value for MVAT : 100
Swachh Bharat Cess: 10
Total :110
MVAT @ 5% on 110//- = 5.5/-

Kindly Solve My query at the Earliest
Dipenti Pandya

Rupesh Jain

Rupesh Jain (Expert)
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24 May 2016 swach bharat cess applicbale on the service tax not on the VAT .

Dipenti Pandya

Dipenti Pandya (Querist)
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24 May 2016 Thank you very much sir, but my query is that we include swachh bharat cess amount which we get at the time of calculating service tax amount and same amount we added in Gross value for calculating VAT.

Dipenti Pandya

Rupesh Jain

Rupesh Jain (Expert)
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24 May 2016 yes when you calculate the service tax then you have take SBC in to account, and VAT not calculate on the taxable +service tax= due to no tax calculated on the tax. so you take only taxable amount for VAT calculation.

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