SB Cess applicable

[Asked by Guest]

Dear Sir,

SBC is applicable from 15.11.2015 if service provider raised invoice before 15.11.2015 and we accounting before 15.11.2015 but we made payment after 15.11.2015 in that case SBC will attract in this transaction ?

Regards

Swapneswar

[saket s]

SBC will not attracted in this case.

[Ganeshan Kalyani]

Whether the service falls under reverse charge. If yes, then SBC will become applicable as the point of taxation is the date of payment to service provider and since you have made payment after 15.11.2015 SBC is applicable. Further if you are availed service other than those covered under reverse charge then SBC will not be applicable as service availed and invoice raised both are before 15.11.2015.

[DR.MARIAPPAN GOVINDARAJAN]

The FAQ on SBC released by the Board will clarify your doubts.

[YAGAY and SUN]

We endorse the view of Mr. Saket and Mr. Ganeshan in this regard.

[Ganeshan Kalyani]

Thanks for appraising our reply / efforts.

AI Summary

Swachh Bharat Cess applicability depends on point of taxation; reverse charge payments can trigger the cess.
SBC does not attach if the service was invoiced and accounted for before the levy's commencement even if payment occurred later; however, where the service falls under the reverse charge mechanism and payment is made after the levy's commencement, SBC becomes applicable, with a departmental FAQ available for clarification.