SWACHH BHARAT CESS APPLICABLE ON ALL TAXABLE SERVICES @0.5%

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In budget 2015 government has announced to levy Swachh Bharat Cess on all or some of the taxable services in addition to the current rate of 14%. It has been sad that the proceeds out of this Cess will exclusively use for the cleanliness campaign of Prime Minister Narender Modi. Now Swachh Bharat cess applicable on all taxable services @0.5%

As India is a very large country in terms of its population. So to make them a part of cleanliness of their country government requires only 0.50 paisa per Rs. 100 of taxable services.

With effect from 15 th November 2015,Swachh Bharat cess applicable on all taxable services @0.5%. So from 15th November 2015 the effective taxable rate of service tax will be 14.5%.

The official notification regarding the same is given for your kind reference.

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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 15 th day of November, 2015.

[F.No. 354/129/2015 – TRU]

(K.Kalimuthu)
Under Secretary to the Government of India