Swach bharat cess

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Ankur Joshi (Querist)

26 May 2015 Please clarify the new service tax of 14%, and how the new cess adjusted like the education cess and the Higher education cess.

what is swach bharat cess?

Atit Shah

Atit Shah (Expert)

26 May 2015 New Rate of 14% will be effective from 01.06.2015, and there will be no EC or SHEC from that date. With respect to Swach Bharat Cess (SBC) same is not yet applicable, however same will be notified soon.
So Rate of serivce tax
from 01.04.2015 to 31.05.2015 12.36%,
from 01.06.2015 to ..... 14.00%,

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Adv. Rajesh Chhangani

Adv. Rajesh Chhangani (Expert)

26 May 2015 An enabling provision is being made to empower the Central Government to impose a Swachh Bharat Cess (“SB Cess”) on all or any taxable services at a rate of 2% on the value of all or any taxable services. The proceeds from this Cess would be utilized for Swachh Bharat initiatives. The Government will specify the categories of taxable services on which SB Cess would be leviable.

As per TRU Clarification vide D.O.F.No.334/5/2015-TRU dated May 19, 2015, the effective dates in respect of the SB Cess shall be notified at later date.

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