Swatch bharat cess

Hello,
I think neither you may take credit nor claim refund of SBC. (unless rules amended).

All the exemptions provided under Section 93(1) of Finance Act, 1994 are equally applicable to SBC also. On this count SEZs technically becomes eligible to procure domestic services without paying any SBC or eligible for refund if it is paid.

Yes agree with Nagendra Ji

The following types of services are not chargeable to SBC:-

• Services excluded from the definition of service as per Section 65B (44) like services provided by an employee to the employer, etc.
• Services provided or deemed to be provided outside the taxable territory. It means SBC is not chargeable even on services provided in the state of J&K as it is Non-Taxable Territory.
• Services exempted under Mega Exemption Notification No. 25/2012-ST.
• Services abated under Notification No. 26/2012-ST to the extent of abatement.
• Services exempted under Notification No. 33/2012-ST to the extent of threshold of Rs. 10
• Services provided to SEZ exempted under Notification No. 12/2013-ST

In simple words, if a person is liable to pay service tax, he becomes liable to pay SBC @ 0.50% on the same value upon which service tax is calculated @ 14%.

Negative List of Services under Section 66D of the Finance Act, 1994 are non taxable service therefore SBC also not applicable….