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%
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 :)
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.
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