Press Information Bureau
Government of India
Ministry of Finance
06-November-2015 19:47 IST
Government decides to impose a Swachh Brarat Cess at the rate of 0.5% on all serviceS presently liable to service tax, with effect from 15th November 2015; Proceeds from this cess to be exclusively used for Swachh Bharat initiatives

In Budget, 2015, a provision was made for levying a Swachh Bharat Cess on all or any of the services, for the purposes of financing and promoting Swachh Bharat initiatives or for any other purpose relating thereto.

We are a country of more than 120 crore people. For such a vast and populous country we do have our fair share of cleanliness concerns. In fact, persons entrusted with the job of keeping our country clean, struggle constantly. Ceanliness also has huge impact on public health. Dirty surrocundings also cause many diseases, like, malaria, dengue, diarrhea, jaundice, cholera etc., with associated high public health expenditure. According to the Government of India estimates, expenditure on health adds up to Rs.6,700 crore annually (approximately Rs.60 per capita). Increased allocation for Swachh Bharat Abhiyan can prevent many of these diseases with consequential benefit to one and all.

Study by American Journal of Tropical Medicine and Hygiene reveals that between 2006 and 2012, India reported an annual average of 20,474 dengue cases, with direct medical cost of about Rs.3500 crore per annum.

Swachh Bharat Cess is not another tax but a step towards involving each and every citizen in making contribution to Swachh Bharat. In this direction, the Government has decided to impose, with effect from 15th November 2015, a Swachh Brarat Cess at the rate of 0.5% on all services, which are presently liable to service tax. This will translate into a tax of 50 paisa only on every one hundred rupees worth of taxable services. The proceeds from this cess will be exclusively used for Swachh Bharat initiatives.

RELATED NOTIFICATION IS AS FOLLOWS

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

New Delhi, the 6th November, 2015

Notification No. 22/2015-Service Tax

G.S.R. 843(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

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Posted Under

Category : Service Tax (3307)
Type : Notifications (15543) Notifications/Circulars (31045)

39 responses to “Swachh Bharat Cess on all taxable services from 15.11.2015”

  1. ilayaraja says:

    Dear Sir,
    i make sales bill S.tax 14%+ Swach cess .5% separately, But i have entered purchase entry in tally S.tax 14% separatly but SWach ces amt to be added in expense. this is correct or not
    Ex: Purchase Amt Rs.1000 S.tax 14% – 140 Swach – 5
    I have entered in tally Purchase Rs.1005 ( Purchase amt+Swach cess) S.Tax – 140
    Please explain this is correct entry

  2. NEERAJ TOMAR says:

    WHAT IS SB CESS DEPOSIT CODE

  3. ketan momaya says:

    your good-office will appreciate as customs brokers we are required to incur expenses for availing services for and on behalf for our principal and have to arrange payment thereof the service rendering unit charge S.B. cess which are paid by us on behalf of the principals and we claim re-reimbursement of such exp. form principals.
    inv.RS. 1000
    s.t.RS. 140
    s.b Rs. 5
    toatl 1145/-
    bill to our principal inv.+ s.b = 1005
    s.t.14% = 141
    s.w.05% = 5
    total = 1151
    double taxation on one service – there is on set- off system in case of s.b. pls guidance in the matter is solicited.

  4. Prabal Kanti Das says:

    It needs to confirm us in case of job completed and even bill submitted before 15th Nov’2015 but checking (process)of bill and payment in respect of job have been made on Dec’2015. In such cases SBC is applicable or not.Regards.

    We are waiting for your comments.

    Thanking you

  5. ramchandra kheratkar says:

    we want know swachh bharat cess (SBC) accounting code to deposit and also show the separately in invoice?

  6. Rakesh Kumar says:

    Hi,

    Is this applicable for employee insurance premium as well. Currently we are charging 14% service tax, so should we now charge 14.5% effective 15 Nov 2015.

    Regards,
    Rakesh

  7. sanjay tewari says:

    Outstanding amount which is against adavance billing will also attract this on services rendering after 15.11? If yes,then what is waythe process for accounting nd recover this sswach bharat tax?

  8. sanjay tewari says:

    Will it be paid separately and cenvat credit will be allowed?

  9. chandu says:

    Hi,
    Its Diwali gift for govt…. wow… What make sense in paying extra tax for swachh bharat modi sir, if currently paid municipality is not working properly.

  10. gopal roy says:

    whether swach bharat cess is cenvatable ??

  11. CA Manoj Kumar says:

    Greetings. Swach Bharath Cess has been Notified @ 0.5% on value of taxable services with effect from November 15, 2015 vide Notification No. 21 and 22 dated November 6, 2015. Rate of service tax with effect from November 15th will be 14.5% with Swach Bharat Cess. No Credit of the cess component. Tax and Cess have to be charged separately and paid under different accounting heads. Head of account for SBC yet to be notified. This is for all taxable services without any exemption.

  12. CA Manoj Kumar says:

    After Bihar Poll verdict, I suggest NDA govt. to make life of AAM People simple. Take tax in one go. take 14.5% but from 1.4.2016 instead of in between the year. Why governemnt makes changes in between a financial year.

  13. CA Manoj Kumar says:

    sorry, i mean it is not cenvatable, no credit to be claimed

  14. CA Manoj Kumar says:

    Swatch Bharat tax is to be charged seperately @.5% and it is cenvatable, no credit to be claimed. Seperate account head will be notified shortly

  15. CA. Subhash Chandra Podder says:

    Diwali Gift?

    • Santosh Navale says:

      Hi,
      We are in service Industries can we take the Swach Bharat Cess as input for our set-off for payable.

      Thank You,

  16. Naren Banerjee says:

    What will the accounting code to deposit the SBC@.5%
    Thanks,
    Naren

  17. Manish K. Gandhi says:

    There is doubt in trade as what about services with abated value i.e. GTA. I think now for such service 30% of 14%=4.20% + 0.50%=4.70% gross will be attracted. However more clarification is required to clear ambiguity.

    However as per my opinion, For the services with abatement in Rule 2 of Service Tax Valuation Rule, i.e. Works contract/Catering etc. abated value will be full value for paying service tax or S.B.Cess as the value which is being abated is nathing but value of materials.

  18. Rajesh,Mumbai says:

    Change the Title. Its not Diwali Gift. It is Diwali Loot. We, soft class of Indian people are being fooled. They say only 0.5% cess but what about 14% they are already looting.They enhanced taxable value of certain services. they levied additional Excise on Petrol. Maharashtra government levied extra surcharge on petrol. They are talking of removal of Gas subsidy.They increased Railway ticket booking time limit from 2 months to 4 months with the ulterior motive of using poor people’s money as well income by way of increased cancellation. Now They have proposed to double cancellation charges on Rail Ticket.Is any one there to stop these insane people?.

  19. premchand says:

    don’t worry,you will get free food gift from the modi if he rules for 10years as he is a management guru,but condition is that all your wealth is to be handed over as Taxes to the govt for good governance/ management.

  20. RAJAN SHARMA says:

    In which code that amount to be paid. Is it cenvatable.

  21. Michael says:

    Effective from 15-11-15 means Invoice date from 15-11-15 is it right.

  22. Santosh Pandit says:

    It’s good thing, we all has to be take care

  23. Ashok Sharma says:

    Hi

    Swachh Bharat Cess is cenvatable

    Thank You

    Reply

  24. AshwinNathwani says:

    What is effective rate of service tax chargeable from 15.11.2015 and what is code that needs to be paid. And also please clarify can we adjust against Swachh Bharat Cess payable?
    Thanks

  25. PINAKIN VYAS says:

    My Question is that I am service provider how many income our account book audit

  26. B R Shetty says:

    Typical of Beraucratic notification first bring CART make our exchequer to spend & then ask for HORSE. we have rarely seen notification that is comprhensive enough to reduce misgivings on system. if swatchata you need tax what about entire service tax which is exclusively for SALARY of beracrat/poitician is itself strange in its logic. how many companiese spemd 12.3% on emoluments of its staff.

  27. Ganesh Prasad says:

    what is effective rate of service tax chargeable from 15.11.2015
    and in what code that needs to be paid.

    kindly clarfy the same.

  28. pavan says:

    Dear Sir

    Please clarify me that now service tax comes 14.5% or 14.07%

    Thank you

    Reply

    • Ranu Agrawal says:

      effective rate of service tax will be 14.50%.

      • ashwani says:

        cess means Tax on Tax why we not calculate on service tax 14% and rate 14.07 instead on 14 %+.50%=14.50%
        its not directly applicable on taxable services

    • Mahesh Shetty says:

      14.5%.. Its in addition to Service Tax…

      • Jo says:

        No. 14% is separate and additional 0.5% is separate on billed value. same like service tax calculation.
        we need show separately in invoice.
        Invoice value: 1000
        Service tax:140
        SBC:5

        And SBC not utilized for credit taken.

        If any changes pls let me inform …..,

  29. Bhausaheb Pingle says:

    Dear sir,

    We have old cess input credit available.

    Can, we adjust against swachh bharat cess payable?

    Thanks

  30. ABHISHEK says:

    Rate of service tax @ 14.5%,Is true or false

  31. Rajan says:

    Hi,
    What is the accounting code to deposit Swachh Bharat Cess.

    Thank you.

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