SWACHH BHARAT CESS AMT TDS DEDUCT OR NOT

[shiv singh tomar TOMAR]

SWACHH BHARAT CESS AMT TDS DEDUCT OR NOT

[Ganeshan Kalyani]

CBDT clarified that TDS shall not be deducted on service tax component. Swachh Bharat Cess is a levy alike service tax and therefore it can be inferred that TDS shall not be deducted on swachh Bharat Cess element.

[YAGAY and SUN]

Dear Shiv,

In continuation to the reply submitted by Mr. Ganeshan, if Swahchh Bharat Cess is included in the gross amount of the bill then it TDS would be deducted and if SBC is shown separately, then, no TDS would be deducted on such levy.

This is for your kind information.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

[DR.MARIAPPAN GOVINDARAJAN]

In the invoice SBC should be shown separately; as such no TDS is required.

[Ganeshan Kalyani]

Moreover the FAQs clearly states that the Swachh Bharat Cess shall be accounted separately. Therefore SBC should be collected separately by charging on the face of the invoice.

AI Summary

Swachh Bharat Cess not subject to TDS when shown separately on invoice; inclusion in gross may attract TDS.
Swachh Bharat Cess is treated like the service tax component and TDS need not be deducted on the cess when it is shown separately; if the cess is included in the gross bill amount rather than itemised, TDS may be deducted on the aggregated amount, so invoices should disclose the cess separately.