Swach bharat cess

Hey Sagar,

As per new rules introduced in Union Budget 2015, the rate of service tax is raised from 12.36% to 14% therefore removing Education cess and SHEC.

A Swacch Bharat cess @ 2% is also proposed to be introduced on the value of services, which may result in an effective service tax rate of 16%.

It means 2% cess will be charged on 14% Service Tax resulting in total tax of 16%.

Cheers

but Swacch Bharat cess @ 2 will be alllicable on which service this is not clear in budget.so please deposit service tax 14% from march 2015.after announcine by government that service with add with Swacch Bharat cess @ 2 then will deposit 2 % extra

 

Dear All,

Yesterday  06-Nov-2015 Govt issued a notfn no.22/2015-ST it is clarified that Swachh Bharat Cess 0.5% on value of services only, hence total ST is 14.50% w.e.f:15-Nov-2015.

thanks 

yes the tax 14.5% not 16%

As of Govt Circular Reference the Effective Service tax rate is 14.5% from 15-11-2015

And if service is provided before 15-11-2015 Else invoice,payment made after 15-11-2015 the tax would be 14%

And if service is provided after 15-11-2015 Else invoice,payment made before 15-11-2015 the tax would be 14.5%

Dear Varma ji,

The above condition apply to Service Provider only (Rule 4 of POT)

for Service Receipient it is not applicable, when you are paying amount is considered (Rule 7 of POT) (service render , bill date not applicable).

for your info pl

Dear Sir

We have received Advance Rent Invoice From owner at 1-11-2015 for the Month of Nov.2015 and he also charge Service Tax 14 % but now he again want to Extra  0.50 % Swachh Bharat Cess 

is it tru ????

Dear pradip,

pl find below for Service Provider purpose Rule 4 of POT Rules;

I think swach barat cess is .5% on service value

Thanks Sathya sir for the charts.

Yeah. It is actually not a cess as the nomenclature suggests. It is applied @ .5% on total value in all the effective rate becomes 14.5%.

As of Circular Reference the Effective Service tax rate is 14.5% from 15-11-2015

Swach  Bharat Cess is chargeable on service amount. 

ie whole 14.5% is charged on total service amount.