SB Cess on Advance payment., Service Tax

[Mangesh khedkar]

Dear sir,

I am service receiver of corporate sector, we had paid 10% advance payment with service tax before15.11.2015 & vendor raised invoice dated on 02.12.2015 hence please suggest we can process invoice of SB cess on 100% (with advance payment) or 90% (excluding advance payment).

Posts / Replies

[YAGAY AND SUN]

SBC would be applicable on the remaining taxable value i.e. 90% (excluding advance payment).

[Ganeshan Kalyani]

Yes I agree with the view submit by Yagay and Sun.

[Rajagopalan Ranganathan]

Sir

You have to pay SB cess on 90% of service charges paid on or after 15.11.2015. In this connection in FAQ issued by CBEC on SB Cess at Q15 it is clarified that in cases where payment has been received and invoice is raised before the service becomes taxable, i.e. prior to 15th November, 2015, there is no lability of Swachh Bharat Cess. In cases where payment has been received before the service became taxable and invoice is raised within 14 days, i.e. upto 29th November, 2015, even then the service tax liability does not arise. Swachh Bharat Cess will be payable on services which are provided on or after 15th Nov, 2015, invoice in respect of which is issued on or after that date and payment is also received on or after that date. Swachh Bharat Cess will also be payable where service is provided on or after 15th Nov, 2015 but payment is received prior to that date and invoice in respect of such service is not issued by 29th Nov, 2015.

I hope this will help you to take a decision.