Swach bharat cess

one of my friend has a consultancy firm. i have a query regarding service tax. what will the impact of swatch bharat cess in invoice in the month of jan ?
Replies (14)

Hello,
Swachh Bharat Cess is an additional levy of 0.50% on all the taxable services with effect from 15thNovember, 2015. This Swachh Bharat Cess will be added in the service tax rate which makes effective service tax rate of 14.50% and all the taxable services which will be provided on or after 15th November, 2015, will be chargeable with new service tax of 14.50% including Swachh Bharat Cess. 

Jan month invoice will change to include SBC of 0.5% on taxable value. The calculation will be as follows,

Taxable value         =   xxxxxxx

service tax @ 14.5% = xxxxx

      Cess on above value               

Hello @ Dyuthi
Presently service tax rate is 14% + SBC 0.50% (Not 12.5%)

Thank you sir... I have checked it out and found what you said is right ... clear one more doubt... SHE cess and Educational cess are paid on SBC also  as I said or only on 14%

Should service provider shows Swachh Bharat Cess separately in the invoice?

The Service Tax Rate applicable from 1st June 2015 is 14%. This rate is an inclusive rate and SHEC and Education Cess is not required to be charged above this.

Hello @ Heena
it would be disclosed separately in the Invoice. You would be required to mention 14% Service Tax and 0.5% Swachh Bharat Cess in the invoice.

Thank you so much :)

Have to disclose separately service tax amount and swatch Bharat cess...

thanks sir

Pl clarify me this doubt.. In case of Reverse Charge Mechanism under Taxi Hire Charges for SBC @ 0.5%, whether the receipient is liable to pay 100% SBC to government or 50% of SBC to the government.

Swatch bharat cess to be disclosed separately and no CENVAT credits for the same can be taken while making the payment for the same.
Swatch bharat cess to be disclosed separately and no CENVAT credits for the same can be taken while making the payment for the same.
Swatch bharat cess to be disclosed separately and no CENVAT credits for the same can be taken while making the payment for the same.

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