Swachh Bharat Cess

Swachh Bharat Cess

Question: At what rate Union Government has decided to impose a Swachh Brarat Cess on all services presently liable to service tax?

(a) 1%
(b) 0.5%
(c) 2%
(d) 1.5%

Ans (b)

Related facts:

  • Union Government decided to impose a Swachh Brarat Cess  on all services presently liable to service tax.
  • It is to be exclusively used for Swachh Bharat initiatives.
  • Government has decided to impose, with effect from 15th November 2015, at the rate of 0.5% on all services, which are presently liable to service tax. It will be levied in addition to the 14 percent service tax that is in force now.
  • In the General Budget, 2015-16, a provision was made for levying a Swachh Bharat Cess on all or any of the services, for the purposes of financing and promoting Swachh Bharat initiatives or for any other purpose relating thereto.
  • Swachh Bharat Abhiyan (English: Clean India Mission) and abbreviated as SBA or SBM for Swachh Bharat Mission is a national cleanliness campaign by the Government of India, campaign was officially launched on 2 October 2014 on the occasion of Mahatma Gandhi’s 145th birthday.

Reference:

http://pib.nic.in/newsite/erelease.aspx

http://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2015/st22-2015

http://economictimes.indiatimes.com/news/economy/finance/government-to-impose-0-5-swachh-bharat-cess-on-services-from-november-15/articleshow/49692169.cms

http://www.hindustantimes.com/india/services-to-attract-0-5-swachh-bharat-cess-from-november-15/story-oEEmzrPFb75fJstQmQmJWN.html