TMI BlogLiability of Swachh Bharat CessX X X X Extracts X X X X X X X X Extracts X X X X ..... In case of reverse charge mechanism what will be point of taxation. In case i have received manpower service in October 2015 (before applicability of SB cess)and I am paying service tax on 06.12.2015 (after applicability of SB cess) , whether SB Cess will be applicable on the bill. - Reply By Ganeshan Kalyani - The Reply = SBC will be applicable as point of taxation for reverse charge is date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment to the service provider and you have made payment after the introduction of SBC. - Reply By KASTURI SETHI - The Reply = I agree with the views of Sh.Ganeshan Kalyani, Sir. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = What is the date of invoice for the manpower service received in October 2015? When did you pay the invoice amount? - Reply By Pawan Agarwal - The Reply = Date of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voice is 26th Oct'2015 - Reply By Pawan Agarwal - The Reply = Invoice payment date is in Dec15 - Reply By MARIAPPAN GOVINDARAJAN - The Reply = Since the service received and the invoice received is before 15.11.2015 i.e., the date of effect of SBC, SBC is not applicable to your case. - Reply By KASTURI SETHI - The Reply = Sh. MARIAPPAN GOVINDARAJAN Ji, Sir, Had que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stioner, Sh.Pawan Aggarwal given complete facts at the first instance, he would have got fool proof reply much earlier. - Reply By Ganeshan Kalyani - The Reply = Kasturi Sir and Mariappan Sir I would like to refer Rule 7 of Point of taxation rules 2011 which states that the point of taxation in respect of person liable to pay tax as a recipient of service is the date of payment to the serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice provider. In light of the said provision I infer that the payment to service provider is made after the introduction of SBC and the point of taxation in this case is in December I.e. After the introduction of SBC and hence SBC is applicable in the present case. With due respect I request you to please discuss with your point of view. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ni, Ji, Sir, I have re-examined the whole issue date-wise. You are 100% right.For Reverse Charge Mechanism, Rule 7 POT Rules is applicable. There is no hitch in admitting that I was in the wrong. It happened in a hurry. It should not have happened on my part. I was thinking about Rule 5 or 4 . Here is relevant extract of Board's circular in support of your contention. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Q. 19 How would liability be determined in case of reverse charge services where services have been received prior to 15.11.2015 but consideration paid post 15.11.2015? Ans. In respect of reverse charge mechanism, SBC liability is determined in accordance with Rule 7 of Point of Taxation Rules , as per which, point of taxation is the date on which consideration is paid to the service pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovider. Thus, SBC liability in such case will be 0.5% X Value of taxable service. Thanks a million for rectification and that too quickly. K.L.SETHI - Reply By SUDHIR KUMAR - The Reply = Dear All. Please read the following points related to Swachh Bharat Cess: What would be the point of taxation for Swachh Bharat Cess? Following are possible scenarios for point of taxati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of SBC: 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t issued by 29th Nov, 2015. - Reply By KASTURI SETHI - The Reply = Each and every problem regarding SBC has been solved in FAQ issued in November, 2015 by the Board. - Reply By Ganeshan Kalyani - The Reply = Thanks Kasturi Sir. I respect you and your knowledge. Your replies are full proof and I always learn from them and it enriches my knowledge. - Reply By Pawan Agarwal - The Reply = T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hanks to all respected seniors for providing solution. - Reply By Shyam Naik - The Reply = Dear All, Why should not Section 67A be not applicable and accordingly no SBC is applicable to services provided prior to 15/11/15.How can the POTR have overriding effect over express provision of the Act. - Reply By KASTURI SETHI - The Reply = Sh.Shyam Naik, The assessee has t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o follow the rule until or unless it is struck down by the Court. - Liability of Swachh Bharat Cess - Query Started By: - Pawan Agarwal Dated:- 9-1-2016 Service Tax - Got 15 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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