Swachh Bharat Cess @0.5% - Applicable on all services as per Service Tax from Nov 15 2015

The government of India in order to encourage cleanliness has introduced the Swachh Bharat Cess @0.5% to use for such purposes. 

For such a vast and populous country we do have our fair share of cleanliness concerns. In fact, persons entrusted with the job of keeping our country clean, struggle constantly. Cleanliness also has huge impact on public health. Dirty surroundings also cause many diseases, like, malaria, dengue, diarrhea, jaundice, cholera etc., with associated high public health expenditure. According to the Government of India estimates, expenditure on health adds up to Rs.6,700 crore annually (approximately Rs.60 per capital). Increased allocation for Swachh Bharat Abhiyan can prevent many of these diseases with consequential benefit to one and all. 

So your telephone , insurance ,eating out will all be included with such a cess from Nov 15 ie 50 paise for every 100 rupees and is set to be a bit more expensive.

Relevant notification is as follows.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

New Delhi, the 6^th November, 2015

Notification No. 22/2015-Service Tax

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 Swach 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

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