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.
