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The Central Government has issued Notification No. 22/2015-ST dated November 6, 2015 to exempt all taxable services from payment of SB Cess which is in excess of 0.5% of the value of taxable services. In other words, with effective from November 15, 2015 ‘SB Cess’ @ 0.5% will be levied on value of all taxable services i.e. the effective rate of Service tax including SB Cess will be 14.5% from November 15, 2015. SB Cess is exempted to all those services which are exempted from Service tax refer Notfn. No 22/2015. The Swatch Bharat Cess 0.5% is w.e.f 15.11. 2015 & it is applicable for all taxable services which are billed from 15th Nov 2015, hence even though the Service is rendered prior to 15th Nov, but billed on or after 15h Nov the SB Cess 0.5% has to be charges. Example : If taxable service value is = Rs.100.00 S.Tax @ 14% on Rs.100 = Rs. 14.00 SB Cess 0.5% on Rs.100 = Rs. 00.50 TOTAL Rs.114.50 Scenario 1 - In case where Taxable services are provided before the date to be notified after the enactment of Finance Bill Situation Rate of Service Tax Both Invoice issued and payment received after (notified date after enactment of bill) Service Tax @ 14% plus additional SBC 2% orincreased rates (for alternative rate of services) based on issue of invoice or receipt whichever is earlier Invoice issued prior to (notified date after enactment of bill) and payment received after (notified date after enactment of bill) Service Tax @ 12.36% or original rate as prevailing as on date of issue of invoice payment received before (notified date after enactment of bill) and invoice issued after (notified date after enactment of bill) Service Tax @ 12.36% or original rate as prevailing as on date of receipt Scenario 2 - In cases where Taxable services are provided after the date to be notified after the enactment of Finance Bill Situation Rate of Service Tax Invoice issued prior to (notified date after enactment of bill) and payment received after (notified date after enactment of bill) Service Tax @ 14% plus additional SBC 2% or increased rate (for alternative rate of services) as the case may be as prevailing as on date of receipt Invoice issued and payment also received prior to notified date after enactment of bill Service Tax @ 12.36% or original rate prevailing as on date of issue of invoice or receipt whichever is earlier payment received before (notified date after enactment of bill) and invoice issued after (notified date after enactment of bill) Service Tax @ 14% plus additional SBC 2% or increased rate (for alternative rate of services) as the case may be as prevailing on date of issue of invoice #pdf
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