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.

Leave a Reply

Your email address will not be published. Required fields are marked *