As per the Budget Proposals, Swacch Bharat Cess is leviable on Value of Services from the date of notification.
The Central Government vide its Notification No 22/2015 dtd 6th Nov 2015 has notified that Swacch Bharat cess will be leviable on taxable value of all services @ 0.5%.
This is w.e.f 15.11.2015.
It has to be noted that unlike the earlier cess (ie.,) Educational Cess & Secondary Higher Educational Cess , which were leviable on Service Tax, Swacch Bharat Cess is leviable on Value of Taxable Services.
Hence effectively, the Service Tax Payable on Services w.e.f. 15th Nov 2015 will be 14.5%
The relevant notification is reproduced below :-
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, the 6th November, 2015
Notification No. 22/2015-Service Tax
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]
Under Secretary to the Government of India