Swachh Bharat Cess (SBC) is effective from today (Nov 15, 2015).
Please Note the following :-
- SBC to be shown and charged Separately in the Service Invoice.
- Service Tax will be @ 14% & SBC will @ 0.5%. Both needs to be shown separately in the Invoice. Do not show the Service Tax as 14.5%.
- As of now, there is no amendment passed in the CENVAT Credit rules. Hence, SBC Cannot be taken credit for payment of Service tax using CENVAT Credit.
- The Accounting Codes Notified are are follows in respect of SBC
i) Swacch Bharat Cess – 0044-00-506 (Minor Head)
ii) Tax Collection – 00441493
iii) Other Receipts – 00441494
iv) Penalties – 00441496