Service tax on sbc under reverse charge on transporter?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2015 We used to pay service tax @ (3.50%) after getting abatement on 14% (75% on transporter). Now SBC(Swatch Bharat Cess @ 0.5%) is applicable. So I want to know, Can abatement 75% will be applicable on SBC (0.5%)or not?

Thanks........

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 December 2015 Yes it is applicable. The abatement is only 70%.

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2015 Thanks Sir,
Can one claim CENVAT credit on SBC?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 December 2015 No, cenvat on SBC is not permitted.

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2015 It was implicated from 15 Nov 15 onwards. but with service tax I haven't Deposited SBC for Nov Month. I have seperately calculated SBC for Nov. what is the rate of interest applicable to deposit SBC now?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 December 2015 18% interest applicable....

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2015 Seetharaman ji, we are charging tax after abatement(75%) @ 3.5% & on SBC(0.5%), How much abatement can I claim 75% or 70%?

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2015 Seetharaman ji, we are charging tax after abatement(75%) @ 3.5% & on SBC(0.5%), How much abatement can I claim 75% or 70%?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 December 2015 It is only 70%........

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2015 You mean to say maximum abatement can be availed only up to 70% on the services on which abatement is applicable more than 70% like transporter services etc.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 December 2015 Fot GTA the abatement is 70%.

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