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Service tax input on swach bharat cess

sivakumar (Asst Manager - F&A) (324 Points)

08 March 2015

Hi,

As per FY15-16 Budget Swach Bharat Cess 2% on Taxable value. So can we claim this amount as a Input?

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5 Replies

Vishal Goel (Chartered Accountant) (1693 Points)
Replied 07 January 2016

Hello,
SBC is tax in addition to Service Tax which shall be levied and collected in accordance with the provisions of Chapter VI of the Finance Act, 2015,called “Swachh Bharat Cess”, as service tax on all the taxable services at the rate of 0.5% of the value of taxable service.
SBC is not integrated in the Cenvat Credit Chain. Therefore, credit of SBC cannot be availed. Further, SBC cannot be paid by utilizing credit of any other duty or tax.

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Vishal Goel (Chartered Accountant) (1693 Points)
Replied 07 January 2016

daya shankar singh (CA ,CS) (629 Points)
Replied 07 January 2016

Input of SBC is not allowed.

CA Aravind Penugonda (Chartered Accountant) (311 Points)
Replied 08 January 2016

Dear Mr. Sivakumar,

Since Swacch Bharat Cess is not integrated with CENVAT credit scheme/chain, CENVAT credit of the same is disallowed. The same has been told in "FAQ on SBC" released by CBEC. (Please find the attached link for ''FAQ on SBC" https://www.cbec.gov.in/resources//htdocs-cbec/press-release/faq-sbc.pdf (Point No.14)).

However, it is proposed to integrate the same with CENVAT credit chain (Pre-budget memorandum 2016-17) which may not happen.