TaxTMI 
TaxTMI 
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.
Value for SBC
23 Dec 2015 
7 Replies 
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Swachh Bharat Cess on service value must follow service tax valuation, including abated or reduced taxable value.
Swachh Bharat Cess must be levied on the same value used for charging service tax: where service tax is charged on an abated or reduced value or on the service portion of a works contract, SBC is to be computed on that abated/reduced/service portion value; if service tax is exempt, SBC is not leviable. VAT valuation methods (actuals, abated, composition) do not independently determine SBC liability, and invoicing should be aligned so SBC follows service tax valuation. (AI Summary)
Swachh Bharat Cess must be levied on the same value used for charging service tax: where service tax is charged on an abated or reduced value or on the service portion of a works contract, SBC is to be computed on that abated/reduced/service portion value; if service tax is exempt, SBC is not leviable. VAT valuation methods (actuals, abated, composition) do not independently determine SBC liability, and invoicing should be aligned so SBC follows service tax valuation. (AI Summary)