SB Cess on Advance payment.

[Mangesh khedkar]

Dear sir,

I am service receiver of corporate sector, we had paid 10% advance payment with service tax before15.11.2015 & vendor raised invoice dated on 02.12.2015 hence please suggest we can process invoice of SB cess on 100% (with advance payment) or 90% (excluding advance payment).

AI Summary

Swachh Bharat Cess applies to 90% of taxable value; advance payments before Nov 15, 2015, are exempt. A corporate service receiver inquired about the applicability of Swachh Bharat Cess (SB Cess) on an advance payment made before the tax's effective date. The query involved whether the cess should be calculated on the full amount or only the remaining 90% after the advance. Three responses clarified that the SB Cess applies to the 90% remaining taxable value, as the advance payment was made before the service became taxable on November 15, 2015. The responses referenced CBEC guidelines, emphasizing that the cess is only applicable to services provided and invoiced after the effective date.