Wednesday, November 18, 2015

8 things you would like to know about Swachh Bharat Cess

1. What is Swachh Bharat Cess?


The Hon’ble Finance Minister in his Budget speech 2015-16 had proposed levy of Swachh Bharat Cess. Such Cess was proposed for financing and promoting initiatives towards Swachh Bharat.

Swachh Bharat is not only a programme of hygiene and cleanliness but, at a deeper level, a programme for preventive health care, and building awareness.

Now "Swachh Bharat Cess” is effective from November 15, 2015, at the rate of 0.5% on all taxable services. Thus, rate of service tax will increase from 14% to 14.5%. Now we will have to shell out a bit more service-tax so that our country can become cleaner.

2. Whether Swachh Bharat Cess will be levied on services which are in negative list or are wholly exempt from service-tax?

Swachh Bharat Cess will be levied on all services expect those services which are in the Negative list or are wholly exempt from service-tax.


3. What should be the value of taxable services for computation of Swachh Bharat Cess?
The taxable value for the levy of Swachh Bharat Cess would be the same on which service-tax is levied.

As per Notification No. 23/2015 Swachh Bharat Cess of 0.5% would be levied on the abated value of taxable services.

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