Swachh Bharat Cess

[Guest]

Dear sir,

vendor provided service invoice month of Nov-2015 but he is charge SB Cess on only 15 days amount after of 15.11.2015 and invoice raised dated on 01.12.2015 hence please suggest he is correct or not.

[Ganeshan Kalyani]

Same query repeated.

[KASTURI SETHI]

Sh.Mangesh Khedkar Ji,

If you are not satisfied with the earlier replies of the experts, you may contact the jurisdictional Range Officer or A.C./D.C. and follow their advice and be tension-free. I think it is one time problem and not a huge amount is involved.

[YAGAY andSUN]

Please go through the Point of Taxation Rules in detail for finding out the reply.

[KASTURI SETHI]

As per Board's Circular issued in Nov.15, Rule 5 is applicable. Relevant portion is extracted below:-
Q.15 What would be the point of taxation for Swachh Bharat Cess?
Ans. As regards Point of Taxation, since this levy has come for the first time, all services (except those services which are in the Negative List or are wholly exempt from service tax) are being subjected to SBC for the first time. SBC, therefore, is a new levy, which was not in existence earlier. Hence, rule 5 of the Point of Taxation Rules would be applicable in this case. Therefore, in cases where payment has been received and invoice is raised before the service becomes taxable, i.e. prior to 15th November, 2015, there is no lability of Swachh Bharat Cess. In cases
where payment has been received before the service became taxable and invoice is raised within 14 days, i.e. up to 29th November, 2015, even then the service tax liability does not arise. Swachh Bharat Cess will be payable on services which are provided on or after 15th Nov, 2015, invoice in respect of which is issued on or after that date and payment is also received on or after that date. Swachh Bharat Cess will also be payable where service is provided on or after 15th Nov, 2015 but payment is received prior to that date and invoice in respect of such service is not issued by 29th Nov, 2015.

[Ganeshan Kalyani]

I hope this query was already answered. you may find it in search option.

AI Summary

Point of Taxation rules determine Swachh Bharat Cess liability based on service provision, invoice and payment timing. Under the Point of Taxation Rules (Rule 5) Swachh Bharat Cess, being a new levy, is payable where services are provided on or after the commencement date and the invoice and payment are on or after that date. If payment and invoice were both before the levy, no liability arises; if payment was before but the invoice is issued within fourteen days, no liability arises; where service is on or after the commencement date and the invoice is not issued within the fourteen day window despite earlier payment, the cess is payable.