Swatch bharat cess
This query is : Resolved
23 January 2016
IF
SBC OUTPUT -0.5% -2000
(-)SBC INPUT - 0.5% -1000 (CENVAT)
BALANCE PAYABLE - 1000
IS IT CORRECT ENETRY? LET ME KNOW.
SBC OUTPUT -0.5% -2000
(-)SBC INPUT - 0.5% -1000 (CENVAT)
BALANCE PAYABLE - 1000
IS IT CORRECT ENETRY? LET ME KNOW.
24 January 2016
Swatch Bharat Cess is an additional levy @0.5 % on Services Rendered and / or Received. The same is payable only in Cash i.e through GAR - 7 Challan [e-payment through bank]. Further SBC is not CENVATable and hence no Input credit can be taken. In your illustration you are liable to pay the entire Rs.2,000/- and the SBC of Rs.1,000/- you have paid on services received for rendering output services should be charged directly as expenses to P & L Account.
29 January 2016
Our company organizes an events at 5 star hotels. We sell sponsorships & booths. Sponsors under RCM & for booth net+14.5% S.T. collected. Could we avail the full cenvat credit of Food & Banquets & hall rental. Please let me know.
Suppose,
Service tax collected 1000 (14.5%)
(-) S.T.On F & Banq. 200 (9.80%)
(-) S.T. On Hall Rent 100 (14.5%)
Balance Payable ---- 700/-
It is correct. Please help me.
Suppose,
Service tax collected 1000 (14.5%)
(-) S.T.On F & Banq. 200 (9.80%)
(-) S.T. On Hall Rent 100 (14.5%)
Balance Payable ---- 700/-
It is correct. Please help me.
02 February 2016
In the case of food and banquet, the hotels levy service tax only on abated value of the bill i.e. on 70% of the total bill. An assessee can either avail of abatement or pay the full tax and claim CENVAT Credit. In your case for food and banquets you have enjoyed abatement of 30%. Hence the Input credit of Rs.200 cannot be availed. On the Hall Rent you can avail of the Input Credit. However Input Credit can be availed only on the ST portion of 14% and not on the 0.5% Swatch Bharat Cess. Therefore you can avail of input credit, in your example of just Rs.96/- and have to pay the balance tax pf Rs.904/-.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- Grand in aid
- ASMT-10 received from A O
- IT returns for fresh job holders
- ITR-Capital Gain
- Traces submitting correction statement error
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Residential status of non resident
- CASH GIFT FROM BLOOD RELATIVE
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- Rent claimed on building given on permissive possession basis
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
