Applicability of Swacch Bharat cess & Other Cess on Service Tax

Swacch Bharat Cess @ 2% which is pro­posed to levy on Ser­vice Tax in Finance Act 2015 has not yet been Declared. There­fore the Swacch Bharat Cess will not be applic­a­ble i=on Ser­vice Tax from 1st June, 2015 ti its got Noti­fied. Fur­ther Edu­ca­tion cess has been sub­sumed in New Ser­vice Tax Rate which is applic­a­ble from 1st June, 2015 i.e., 14%. Hence only ser­vice tax @ 14% to be Charged no cess is there at Present.

Swacch Bharat Cess As Pro­posed in Finance Act, 2015:

119. (1) This Chap­ter shall come into force on such date as the Cen­tral Gov­ern­ment may, by noti­fi­ca­tion in the Offi­cial Gazette, appoint.

(2) There shall be levied and col­lect­ed in accor­dance with the pro­vi­sions of this Chap­ter, a cess to be called the Swachh Bharat Cess, as ser­vice tax on all or any of the tax­able ser­vices at the rate of two per cent. on the val­ue of such ser­vices for the pur­pos­es of financ­ing and pro­mot­ing Swachh Bharat ini­tia­tives or for any oth­er pur­pose relat­ing thereto.

(3) The Swachh Bharat Cess levi­able under sub-sec­tion (2) shall be in addi­tion to any cess or ser­vice tax levi­able on such tax­able ser­vices under Chap­ter V of the Finance Act, 1994, or under any oth­er law for the time being in force.

(4) The pro­ceeds of the Swachh Bharat Cess levied under sub-sec­tion (2) shall first be cred­it­ed to the Con­sol­i­dat­ed Fund of India and the Cen­tral Gov­ern­ment may, after due appro­pri­a­tion made by Par­lia­ment by law in this behalf, utilise such sums of mon­ey of the Swachh Bharat Cess for such pur­pos­es spec­i­fied in sub-sec­tion (2), as it may con­sid­er necessary.

(5) The pro­vi­sions of Chap­ter V of the Finance Act, 1994 and the rules made there­un­der, includ­ing those relat­ing to refunds and exemp­tions from tax, inter­est and impo­si­tion of penal­ty shall, as far as may be, apply in rela­tion to the levy and col­lec­tion of the Swachh Bharat Cess on tax­able ser­vices, as they apply in rela­tion to the levy and col­lec­tion of tax on such tax­able ser­vices under Chap­ter V of the Finance Act, 1994 or the rules made there­un­der, as the case may be.

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