As per notification number 21/2015-ST, read with Section 119 of the Finance Act, 2015 and notification number 22/2015-ST, Swachh Bharat Cess (SBC) will come into effect from 15th November 2015, at the rate of 0.5% on all services except services covered under Negative List and services exempt from payment of tax.
Introduction of this new levy has raised doubts in industry regarding its applicability and allied matters. Team DYN has made an attempt to clarify these doubts in form of FAQ in its DYKS-427.
Now, Central Government has issued Notification No. 23/2012-ST, 24/2012-ST and 25/2012-ST to remove uncertainties.
| S. No. | Doubt | Answer | Relevant Notification |
| (i) | Whether SBC would be chargeable on Gross amount charged or on net taxable value in case of abated service? | SBC would be chargeable on net taxable value. | 23/2012-ST |
| (ii) | Whether provisions of reverse charge mentioned under notification number 30/2012-ST would also be applicable in case of SBC? | Yes, all the provisions of reverse charge mentioned under notification number 30/2012-ST would also be applicable on SBC. | 24/2012-ST |
| (iii) | What would be Swachh Bharat Cess on services where service tax is being paid under the alternative rates of service tax as per provision given under Rule 6 (7), (7A), (7B) or (7C) of Service Tax Rules, 1994? | The person liable for paying the service tax under sub-rule (7), (7A), (7B) or (7C) of rule 6, shall have the option to pay SBC as per following method: (Total service tax liability of relevant calendar month/quarter calculated under sub-rule (7), (7A), (7B) or (7C) of rule)*0.5/14 Note: Service provider can also pay SBC as per normal provisions, however, if once SBC paid by exercising special provisions mentioned above then it shall apply uniformly in respect of such services and shall not be changed during a financial year under any circumstances. |
25/2012-ST |
In FAQ CBEC, interalia, clarified that for payment of SBC separate accounting code would be notified shortly in consultation with the Principal Chief Controller of Accounts. These codes are as follows:
| Swachh Bharat Cess (Minor Head) | Tax Collection | Other Receipts | Penalties | Deduct Refunds |
| 0044-00-506 | 00441493 | 00441494 | 00441496 | 00441495 |