Value for SBC

[Mangesh khedkar]

Dear sir,

We had given contract to SSI vendor in composite work (work contract service). vendor consider 70% value for service tax & 100% value for vat hence which value applicable for swachh bharat cess.

AI Summary

Swachh Bharat Cess should be applied on the abated value for service tax in composite work contracts. A query was raised regarding the applicable value for Swachh Bharat Cess (SBC) on a composite work contract with an SSI vendor, where 70% value was considered for service tax and 100% for VAT. Respondents clarified that SBC should be charged on the abated value used for service tax calculation. It was noted that if VAT/WCT is charged on 100% value, it may include the service portion, which is not compliant with VAT laws. The consensus was that SBC follows the same levy principles as service tax, applying to the service portion of the contract.