Swachh Bharat Cess (SBC) effective from today (15th Nov 2015)

Swachh Bharat Cess (SBC) is effective from today (Nov 15, 2015).

Please Note the following :-

  1. SBC to be shown and charged Separately in the Service Invoice.
  2. 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%.
  3. 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.
  4. 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