Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Thursday, November 12, 2015

Important Points on Swachh Bharat Cess on ServiceTax

Ø Swachh Bharat Cess shall be payable on the Service Tax on the value of services and not like Education Cess to be computed on Tax. Swachh Bharat Cess ison value of Services not on ServiceTax.
Ø  Swachh Bharat Cess shall be applicable on all taxable services irrespective of the person liable to deposit the tax.  Swachh Bharat Cess shall be payable in cases where service tax is payable under of reverse charge mechanism and shall be payable by the service recipient only in respect of services where service tax is payable under reverse charge mechanism.
Ø  Swachh Bharat Cess shall not be payable in case of services which are exempted from payment of service tax.
Ø  Swachh Bharat Cess shall be payable on the abated value as if such cess is not payable on exempted services then as per explanation provided Notification No 22/2015 this cess should be payable on the abated value of service and not on full value of service.
Ø  Swachh Bharat Cess is to be charged separately on the invoice.
Ø  Swachh Bharat Cess has been made applicable from 15.11.2015 but no amendment made in Cenvat Credit Rules,2004 for availing and utilizing amount paid on account of such cess. So till the time there is no such amendment no Cenvat Credit is allowable on account of such Cess paid on invoices for expenses.
Ø  Swachh Bharat Cess shall be applicable to services covered under Rule 6 of the service tax like services by travel agents and insurance agents or insurance companies till the time such rules are changed.
Ø  Swachh Bharat Cess shall be applicable on services provided before and billed later after 15.11.15 as per point of taxation rules 2011. 

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