SBC tax applicability

[yateen vyas]

Sir,

If a service is completed before 15/11/205 and invoice is also made before 15/11/2015 but payment is made after 15/11/2015 in that case SBC will be applicable or not.

Rgds

Yateen vyas

[Ganeshan Kalyani]

You may refer Issue Id: 109564 dated 18.12.2015. The query is clearly answered therein.

[yateen vyas]

that was case of advance payment my question is regarding payment after 15/11/2015 but invoice before 15/11/2015.

[PAWAN KUMAR]

Dear Sir,

SB Cess will not be leviable. It is very clear from the faq provided by CBEC that SB Cess will be payable on services which are provided on or after 15.11.2015 and invoice for the same is also be issued on or after 15.11.2015 and Payment Also in the same manner except the case of reverse charge mechanism.

In the instant case service has been completed prior to 15.11.2015, therefore no liability of SB Cess.

[Ganeshan Kalyani]

To put is in simple way, two instances out of three (i.e. completion of service, invoice date, payment date) are before 15.11.2015 therefore, SBC is not applicable.

[DR.MARIAPPAN GOVINDARAJAN]

The querist may be got clarified by the explanations given by the experts.

[yateen vyas]

Thanks to all for such a handy explanation,that's why you are experts. 

[Ganeshan Kalyani]

Welcome Sir. Thanks.

AI Summary

Swachh Bharat Cess applicability: not leviable where service and invoice precede the effective date despite later payment.
Swachh Bharat Cess liability depends on the timing of service provision, invoice issuance and payment; the cess applies only where provision and invoice occur on or after the levy date (with payment timing relevant and reverse charge as an exception). Here, service completion and invoice issuance preceded the levy date while payment followed it, so the cess does not apply.