TMI Short Notes

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

1. Whether SBC is levied on all or selected services?

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2. Does a person providing both exempted and taxable service and reversing credit @ 7% of value of exempted service under Rule 6 of Cenvat Credit Rules, does he need to reverse the SBC also

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3. How would liability be determined in case of reverse charge services where services have been received prior to 15.11.2015 but consideration paid post 15.11.2015?

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4. 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)?

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5. How would the service tax and Swachh Bharat Cess (SBC) be calculated on restaurant services covered under Service Tax (Determination of Value) Rules, 2006.?

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6. How would the tax (Service Tax and SBC) be calculated on services covered under Rule 2A, 2B or 2C of Service Tax (Determination of Value) Rules, 2006.?

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7. What would be the point of taxation for Swachh Bharat Cess?

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8. Whether Cenvat Credit of the SBC is available?

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9. How will SBC be calculated for services where abatement is allowed?

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10. How will the SBC be calculated for services under reverse charge mechanism?

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11. Whether SBC is a ‘Cess’ on tax’ and we need to calculate SBC @ 0.50% on the amount of service tax like we were earlier doing for calculating Education Cess and SHE Cess?

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12. What would be effective rate of service tax and SBC post introduction of SBC?

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13. Whether separate accounting code will be there for Swachh Bharat Cess

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14. Whether SBC would be required to be mentioned separately in invoice?

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15. How will the SBC be calculated?

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16. Where will the money collected under SBC go?

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17. Why has SBC been imposed?

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18. Whether SBC would be leviable on exempted services and services in the negative list?

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19. What is the date of implementation of SBC?

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20. What is Swachh Bharat Cess (SBC)?

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