Hi,
As per FY15-16 Budget Swach Bharat Cess 2% on Taxable value. So can we claim this amount as a Input?
Vishal Goel
(Chartered Accountant)
(1688 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.
Vishal Goel
(Chartered Accountant)
(1688 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.
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.
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