Swacha bharat cess charge

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Hii, One of our client has charged swachabharat cess for 15 days effective from 11th Nov 2015, the service provided for the whole month. Details is as follows Income 20650 Service Tax 2891 SB cess 55 (i.e. 20650 * 0.5%*16/30) Whether it is right practice or the cess should be for the whole month???? Thanks and Regards CS Bikram Keshari Swar
Replies (3)

This notification regarding SBC has come into force from the 15th day of November, 2015. In my view you have to only see services provided after the said date in the notification. You  have to be clear wheather the service is provided after or before the date then calculate cess on that amount. This is not the way

Thanks and Regards,

Dyuthi.C.S

 

We have to see point of taxation rule....right...then only service providing date is not relevant....as per 12 nov 15 notification of govt...it has been clarified that we have follow Point Of Taxation rule...

Hi Bikram

The best practive would be to divide the bill into 2 half one till 15th Nov and one till the end of the month and charge swachabharat cess on the later half.

Regards

Ronak Kothari

ASRK & Associates
 


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