Service tax on sbc under reverse charge on transporter?

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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)

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)

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)

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)

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)

14 December 2015 Fot GTA the abatement is 70%.

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