Swachh Bharat Cess (SBC) levied @0.5% of the value of taxable services w.e.f. 15-11-2015 – thus, the effective rate of service tax will be 14.5%
The Central Government vide Notification No. 21/2015-ST and 22/2015-ST dated 6th November, 2015 shall implement Swachh Bharat Cess (SBC) at the rate of 0.5% of Value of taxable services w.e.f 15-11-2015.
Hence the effective rate of service tax shall be 14.5%.
Further, pursuant to Section 119(5) of Chapter VI of Finance Act, 2015 all provisions of Chapter V of the Finance Act, 1994 and the rules made thereunder shall apply to SBC as well.
Swachh Bharat Cess shall not be leviable on services which are exempt from service tax by a notification issued under sub-section (1) of section 93 of the Finance Act, 1994 or otherwise not leviable to service tax under section 66B of the Finance Act, 1994.
The Text of the Notifications is as under:-
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 21/2015-Service Tax
New Delhi, the 6th November, 2015
G.S.R. —(E).– In exercise of the powers conferred by sub-section (1) of section 119 of the Finance Act, 2015 (20 of 2015), the Central Government hereby appoints the 15th day of November, 2015 as the date with effect from which the provisions of Chapter VI of the said Act, shall come into force.
[F.No. 354/129/2015 – TRU]
(K Kalimuthu)
Under Secretary to the Government of India
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 22/2015-Service Tax
New Delhi, the 6th November, 2015
G.S.R. —(E).– In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) read with sub-section (5) of section 119 of the Finance Act, 2015 (20 of 2015), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all taxable services from payment of such amount of the Swachh Bharat Cess leviable under sub-section (2) of section 119 of the said Act, which is in excess of Swachh Bharat Cess calculated at the rate of 0.5 percent. of the value of taxable services:
Provided that Swachh Bharat Cess shall not be leviable on services which are exempt from service tax by a notification issued under sub-section (1) of section 93 of the Finance Act, 1994 or otherwise not leviable to service tax under section 66B of the Finance Act, 1994.
This notification shall come into force from the 15th day of November, 2015.
[F. No. 354/129/2015 – TRU]
(K. Kalimuthu)
Under Secretary to the Government of India
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