Swachh Bharat Cess @ 0.5% leviable with effect from 15-11-2015 on all taxable services vide service tax notification 21/2015 dated 06-11-2015. It was proposed in budget 2015-16 that Swachh Bharat Cess will be levied @2%. However currently government start imposing this cess @0.5% (Half Percent only) vide notification no. 22/2015-service tax. This could be increased upto 2% any time at later through Government Notification.
It is also provided that Swachh Bharat Cess shall not be leviable on services which are exempt from service tax by mega exemption notification and negative list. The swachh bharat cess calculation can be understand with following illustration:
Total Value of Taxable Servicees Rs. 10,000/-
Service Tax @14% (10,000/- x 14%) Rs.1400/-
Swachh Bharat Cess @0.5% (10,000/- x .5%) Rs.50/-
Total Rs.11450/-
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, the 6th November, 2015
Notification No. 22/2015-Service Tax
G.S.R. —(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) read with sub-section (5) of section 119 of the Finance Act, 2015 (20 of 2015), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all taxable services from payment of such amount of the Swachh Bharat Cess leviable under sub-section (2) of section 119 of the said Act, which is in excess of Swachh Bharat Cess calculated at the rate of 0.5 percent. of the value of taxable services:
Provided that Swachh Bharat Cess shall not be leviable on services which are exempt from service tax by a notification issued under sub-section (1) of section 93 of the Finance Act, 1994 or otherwise not leviable to service tax under section 66B of the Finance Act, 1994.
This notification shall come into force from the 15th day of November, 2015.
[F.No. 354/129/2015 – TRU]
(K.Kalimuthu)
Under Secretary to the Government of India
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 21/2015-Service Tax
New Delhi, the 6th November, 2015
G.S.R. —(E).- In exercise of the powers conferred by sub-section (1) of section 119 of the Finance Act, 2015 (20 of 2015), the Central Government hereby appoints the 15th day of November, 2015 as the date with effect from which the provisions of Chapter VI of the said Act, shall come into force.
[F.No. 354/129/2015 – TRU]
(K Kalimuthu)
Under Secretary to the Government of India