Liability of Swachh Bharat Cess

[Pawan Agarwal]

In case of reverse charge mechanism what will be point of taxation.

In case i have received manpower service in October 2015 (before applicability of SB cess)and I am paying service tax on 06.12.2015 (after applicability of SB cess) , whether SB Cess will be applicable on the bill.

AI Summary

Point of taxation for Swachh Bharat Cess: payment date triggers SBC liability under reverse charge when paid after introduction.
Applicability of Swachh Bharat Cess under reverse charge is determined by Rule 7 of the Point of Taxation Rules, which fixes the point of taxation as the date of payment to the service provider; consequently, where payment is made after introduction of the cess although service and invoice predate it, SBC liability arises. The Board's FAQ affirms that SBC for reverse charge services is determined by Rule 7, making payment date decisive for SBC chargeability.