Swachh Bharat Cess on Royalty Service Tax payment

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..... Swachh Bharat Cess on Royalty Service Tax payment
Query (Issue) Started By: - SANDESH SHINDE Dated:- 25-1-2016 Last Reply Date:- 26-1-2016 Service Tax
Got 2 Replies
Service Tax
Dear Sir, Please explain whether Swachh Bharat Cess will leviable on Royalty Service Tax payment under Import of Services for Service receiver for the period Oct - Dec 2015 If yes then please also explain how .....

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..... to calculate such Swachh Bharat cess by deducting from R & D Cess or not.Please give us any references regarding this ,Thanks & regards. Reply By KASTURI SETHI: The Reply: Pl.intimate the date of invoice and date of payment made. However, relevant extract of FAQs issued by CBEC in Nov.,15 is appended below:- Q.12 How will the SBC be calculated for services under reverse charge mechanism? Ans. .....

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..... In case of reverse charge under section 68(2) of the Finance Act, 1994, the liability has been shifted from service provider to the service recipient. As per section 119 (5) of the Finance Act, 2015, the provisions of Chapter V of the Finance Act, 1994, and the rules made thereunder are applicable to SBC also. Thus, the reverse charge under section 68(2) of the Finance Act, 1994, is made applicab .....

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..... le to SBC. In this context, to clarify, Government has issued notification No. 24/2015-Service Tax dated 12th November, 2015 to provide that reverse charge under notification No.30/2012-Service Tax dated 20th June, 2012 shall be applicable for the purpose of levy of Swachh Bharat Cess mutatis mutandis. Q. 19 How would liability be determined in case of reverse charge services where services have .....

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..... 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 provider. Thus, SBC liability in such case will be 0.5% X Value of taxable service. Q.20 Does a person prov .....

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..... iding both exempted and taxable service and reversing credit Reply By CS SANJAY MALHOTRA: The Reply: Appropriately answered by Sh. Kasturi ji.
Discussion Forum - Knowledge Sharing .....

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