please confirm SBC applicability

[Guest]

Dear sir,

when 50% advance payment along with 100% service tax payment done to vendor dated on 4.11.2015 before the service become taxable & tax invoice raised after date the service becomes taxable i. e. 18.11.2015.

hence kindly confirm applicability of SBC or not in this case.

[JSW CEMENTLIMITED]

Have u made service tax payment on 50% advance received only or made service tax payment on 100% value after receiving 50% advance. From your query it is not clear. kindly clarify.

[PAWAN KUMAR]

Dear Sir,

As per my understanding, the Point of taxation would be as under :

1.The SB Cess was applicable on all services provided or agreed to be provided on or after 15.11.2015, the invoice for which was also issued after that date and payment was also received after that date.

2.Further SB Cess shall not be applicable where payment has been received and invoice is issued prior to 15.11.2015.

3.The SB Cess shall not be applicable where payment has been received prior to 15.11.2015, the invoice for which is issued within 14 days i.e. up to 29.11.2015.

4.The SB Cess will be applicable where payment has been received prior to 15.11.2015 the invoice of which has not issued within 14 days.

5.Further in case of reverse charge which is based on date of payment. In case of service received prior to 15.11.2015 but the payment for such service is made after 15.11.2015, SB Cess will be leviable.

In your case, Payment has made prior to 15.11.2015 but invoice issued after 15.11.2015 and within 14 days, hence SB cess not applicable.

[KASTURI SETHI]

I agree with Sh.Pawan Kumar, an expert.

[Ganeshan Kalyani]

Sir, nice reply. Thanks.

AI Summary

Swachh Bharat Cess applicability hinges on payment and invoicing timing; advance paid before levy and invoiced timely may avoid cess. Applicability of Swachh Bharat Cess depends on timing of payment and invoice relative to the levy date: cess applies when payment and invoice occur after the levy; it does not apply where payment and invoice both precede the levy. A limited post-levy invoice issuance window preserves non applicability if payment was received before the levy; issuance beyond that window renders the cess chargeable. For reverse charge, date of payment governs and post-levy payments attract the cess.