Just a moment...

⚠✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
>
Keyword Search :
AI Tools : New
Ask tax questions in natural language. Powered by AI trained on the TaxTMI legal database. Use AI Tools ➞
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search ❯
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    CircularsService Tax
    Whether SBC is levied on all or selected services?
    CircularsService Tax
    Does a person providing both exempted and taxable service and reversing credit @ 7% of value of exem...
    CircularsService Tax
    How would liability be determined in case of reverse charge services where services have been receiv...
    CircularsService Tax
    Whether SBC would be applicable on services covered by Rule 6 of Service Tax Rules (i.e. air travel ...
    CircularsService Tax
    How would the service tax and Swachh Bharat Cess (SBC) be calculated on restaurant services covered ...
    CircularsService Tax
    How would the tax (Service Tax and SBC) be calculated on services covered under Rule 2A, 2B or 2C of...
    CircularsService Tax
    What would be the point of taxation for Swachh Bharat Cess?
    CircularsService Tax
    Whether Cenvat Credit of the SBC is available?
    CircularsService Tax
    How will SBC be calculated for services where abatement is allowed?
    CircularsService Tax
    How will the SBC be calculated for services under reverse charge mechanism?
    CircularsService Tax
    Whether SBC is a ‘Cess’ on tax’ and we need to calculate SBC @ 0.50% on the amount of service ...
    CircularsService Tax
    What would be effective rate of service tax and SBC post introduction of SBC?
    CircularsService Tax
    Whether separate accounting code will be there for Swachh Bharat Cess
    CircularsService Tax
    Whether SBC would be required to be mentioned separately in invoice?
    CircularsService Tax
    How will the SBC be calculated?
    CircularsService Tax
    Where will the money collected under SBC go?
    CircularsService Tax
    Why has SBC been imposed?
    CircularsService Tax
    Whether SBC would be leviable on exempted services and services in the negative list?
    CircularsService Tax
    What is the date of implementation of SBC?
    CircularsService Tax
    What is Swachh Bharat Cess (SBC)?
❮
❯
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Open Link
    Notes
    All› Service Tax
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    CircularsService Tax
    Whether SBC is levied on all or selected services?
    Show AI Summary
    Swachh Bharat Cess applicability: applies to all taxable services except services fully exempt or not leviable to service tax.
    Swachh Bharat Cess applies to all taxable services except those that are fully exempt under a statutory notification or are otherwise not leviable to service tax; the cess was imposed by government authority to cover the taxable service base while preserving existing exemptions and non leviability rules.
    CircularsService Tax
    Does a person providing both exempted and taxable service and reversing credit @ 7% of value of exem...
    Show AI Summary
    Cenvat credit reversal does not require separate reversal of Swachh Bharat Cess under the applicable rule per FAQ.
    The circular states that Swachh Bharat Cess is not integrated into the Cenvat credit chain; the reversal under Rule 6 requires payment based on the value of exempted services, and therefore a separate reversal of Swachh Bharat Cess is not required when reversing credit under Rule 6 of the Cenvat Credit Rules.
    CircularsService Tax
    How would liability be determined in case of reverse charge services where services have been receiv...
    Show AI Summary
    Point of taxation determines Swachh Bharat Cess liability; payment date triggers reverse charge cess on taxable service.
    Point of taxation governs SBC liability for reverse-charge services: the date of payment is the point of taxation and SBC is payable on the value of the taxable service at the prescribed rate when consideration is paid to the service provider.
    CircularsService Tax
    Whether SBC would be applicable on services covered by Rule 6 of Service Tax Rules (i.e. air travel ...
    Show AI Summary
    Swachh Bharat Cess option for services under specified service-tax rule; SBC computed by prescribed formula and fixed for financial year.
    Persons liable to pay service tax under the sub rules of rule 6 may elect to discharge Swachh Bharat Cess by applying a prescribed computation to their Service Tax liability; once exercised the election must be applied uniformly to such services and cannot be changed during the financial year.
    CircularsService Tax
    How would the service tax and Swachh Bharat Cess (SBC) be calculated on restaurant services covered ...
    Show AI Summary
    Swachh Bharat Cess on restaurant services is calculated on the value determined under Service Tax valuation rules, creating a combined levy.
    Swachh Bharat Cess on restaurant services is payable on the taxable value determined under the Service Tax (Determination of Value) Rules, 2006; for restaurants, eating joints or messes with any air-conditioning or central heating, the cess and service tax are each applied to the portion of the total charge treated as taxable under those rules, and the combined levy is the sum of the service tax rate and the cess rate applied to that taxable portion.
    CircularsService Tax
    How would the tax (Service Tax and SBC) be calculated on services covered under Rule 2A, 2B or 2C of...
    Show AI Summary
    Service tax calculation for services under Rule 2A/2B/2C: apply combined service tax and SBC to the rule determined value.
    Service tax and Swachh Bharat Cess on services governed by Rule 2A, 2B or 2C are computed by multiplying the combined service tax plus SBC rate by the value determined under the relevant rule. For works contract services, applying the combined rate to the rule specified taxable fraction of the contract value produces the operative tax liability; the same approach applies to restaurant and outdoor catering services.
    CircularsService Tax
    What would be the point of taxation for Swachh Bharat Cess?
    Show AI Summary
    Point of taxation for Swachh Bharat Cess: levy applies where service, invoice and payment occur on or after commencement date.
    Because SBC is a new levy on taxable services not in the Negative List or wholly exempt, the Point of Taxation Rules determine liability. SBC does not arise where payment and invoice are issued before the levy's commencement or where payment precedes commencement but invoice is issued within the short prescribed period. SBC is chargeable where service provision, invoice issuance and payment occur on or after the commencement date; it also applies if service is provided on or after commencement but payment was received earlier and invoice is not issued within the short post-commencement period.
    CircularsService Tax
    Whether Cenvat Credit of the SBC is available?
    Show AI Summary
    Cenvat credit of Swachh Bharat Cess disallowed; SBC not in Cenvat credit chain and not payable using credits.
    Cenvat credit for the Swachh Bharat Cess (SBC) is not available because SBC is not integrated into the Cenvat credit chain; consequently SBC cannot be claimed as input credit nor paid using credits of any other duty or tax.
    CircularsService Tax
    How will SBC be calculated for services where abatement is allowed?
    Show AI Summary
    Swachh Bharat Cess calculation: SBC applies same abatement percentage as service tax, on combined taxable rate.
    Swachh Bharat Cess is to be levied on the same abatement percentage that applies to service tax; the notification prescribing abatement for service tax applies equally to SBC, so the combined rate (service tax plus SBC) is applied to the abated value to determine the effective levy.
    CircularsService Tax
    How will the SBC be calculated for services under reverse charge mechanism?
    Show AI Summary
    Swachh Bharat Cess reverse charge shifts liability to the service recipient, applying existing reverse charge notifications mutatis mutandis.
    Swachh Bharat Cess for services under reverse charge is payable by the service recipient: Chapter V provisions apply to SBC, and government notification makes the existing service tax reverse charge notification applicable to SBC mutatis mutandis, so recipients compute and discharge SBC under the same reverse charge rules.
    CircularsService Tax
    Whether SBC is a ‘Cess’ on tax’ and we need to calculate SBC @ 0.50% on the amount of service ...
    Show AI Summary
    Swachh Bharat Cess: not levied on service tax but imposed on the value of taxable services.
    The Swachh Bharat Cess is not a cess on service tax but is imposed as a separate charge measured on the value of taxable services, rather than being calculated on the amount of service tax as was done for Education Cess and SHE Cess.
    CircularsService Tax
    What would be effective rate of service tax and SBC post introduction of SBC?
    Show AI Summary
    Service tax plus Swachh Bharat Cess yields a combined rate after SBC introduction, affecting taxable services.
    The operative tax burden on taxable services equals the prevailing service tax rate plus the Swachh Bharat Cess, expressed in the FAQ as an additive formula (for example, service tax rate plus 0.5% SBC) to determine the overall effective rate after SBC's introduction.
    CircularsService Tax
    Whether separate accounting code will be there for Swachh Bharat Cess
    Show AI Summary
    Separate accounting code for Swachh Bharat Cess to be notified, creating distinct heads for collection, receipts, penalties and refunds.
    Separate accounting codes for the Swachh Bharat Cess will be notified in consultation with the Principal Chief Controller of Accounts, establishing distinct minor head classifications to record cess Tax Collection, Other Receipts, Penalties and Deduct Refunds with corresponding numeric codes for government accounting.
    CircularsService Tax
    Whether SBC would be required to be mentioned separately in invoice?
    Show AI Summary
    Swachh Bharat Cess must be shown separately on invoices and accounted for independently from service tax.
    Swachh Bharat Cess (SBC) is levied independently of service tax and must be charged, collected and paid separately; it should appear as a distinct line item on invoices (may be shown after service tax), be accounted for separately in books of account, and remitted under a separate accounting code, with treatment similar to education cesses.
    CircularsService Tax
    How will the SBC be calculated?
    Show AI Summary
    Swachh Bharat Cess calculation mirrors service tax and is levied on the identical taxable value.
    The Swachh Bharat Cess is computed using the same methodology as service tax and is levied on the identical taxable value applied for service tax, with no separate valuation base or distinct computation formula for the Cess.
    CircularsService Tax
    Where will the money collected under SBC go?
    Show AI Summary
    Proceeds of Swachh Bharat Cess credited to Consolidated Fund of India, usable after parliamentary appropriation for sanitation initiatives.
    Proceeds of the Swachh Bharat Cess are to be credited to the Consolidated Fund of India, and after parliamentary appropriation the Central Government may utilise such sums for financing and promoting Swachh Bharat initiatives or for related purposes.
    CircularsService Tax
    Why has SBC been imposed?
    Show AI Summary
    Swachh Bharat cess imposed to finance and promote sanitation initiatives, obliging service providers to collect and remit the levy.
    Imposition of Swachh Bharat Cess is a statutory levy on taxable services to generate revenue expressly for financing and promoting Swachh Bharat initiatives and related purposes, creating an obligation on service providers to collect and remit the cess so funds are available for the designated sanitation objectives.
    CircularsService Tax
    Whether SBC would be leviable on exempted services and services in the negative list?
    Show AI Summary
    Swachh Bharat Cess on exempted and negative list services is not leviable under the FAQ circular.
    The circular clarifies that Swachh Bharat Cess is not leviable on services which are fully exempt from service tax and on services covered by the negative list, limiting the cess's chargeability to taxable services only.
    CircularsService Tax
    What is the date of implementation of SBC?
    Show AI Summary
    Swachh Bharat Cess implementation date fixed as 15 November 2015 under notification appointing its commencement.
    The Central Government appointed 15 November 2015 as the date on which provisions of the Swachh Bharat Cess come into effect, by notification No.21/2015 Service Tax dated 6 November 2015.
    CircularsService Tax
    What is Swachh Bharat Cess (SBC)?
    Show AI Summary
    Swachh Bharat Cess applies as a service cess on taxable services, increasing service tax liability and compliance obligations.
    Swachh Bharat Cess is a statutory cess levied as a service cess under Chapter VI of the Finance Act, 2015, imposed on all taxable services and collected in accordance with the Act's levy and collection provisions, thereby increasing service tax liability and requiring compliance with service tax accounting and remittance rules.

    TMI Notes

    All› Service Tax
    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Home› TMI Notes › Service Tax › Circulars › Category › This
      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters
      Service Tax

      Whether SBC would be applicable on services covered by Rule 6 of Service Tax Rules (i.e. air travel agent, life insurance premium, purchase and sale of foreign currency and services by lottery distributors/selling agents)?

      16 December, 2015

      Contents
      Notifications
      Circulars
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Print Options

      Circular No. FAQ-SBC - Dated: 16-11-2015 - SWACHH BHARAT CESS (SBC)-FREQUENTLY ASKED QUESTIONS (FAQ)

      Q.18 Whether SBC would be applicable on services covered by Rule 6 of Service Tax Rules (i.e. air travel agent, life insurance premium, purchase and sale of foreign currency and services by lottery distributors/selling agents)?

      Ans. Sub-rule (7D) to rule 6 has been inserted vide notification 25/2015-Service Tax, dated 12th November, 2015 so as to provide that the person liable for paying the service tax under sub-rule (7), (7A), (7B) or (7C) of rule 6 of Service Tax Rules, shall have the option to pay SBC as determined as per the following formula:-

      Service Tax liability [calculated as per sub-rule (7), (7A), (7B) or (7C)] X 0.5%/14%

      The option under this sub-rule once exercised, shall apply uniformly in respect of such services and shall not be changed during a financial year under any circumstances

      Topics

      ActsIncome Tax
      Next ➔