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Press Information Bureau
Government of India
Ministry of Finance
06-November-2015 19:47 IST
Government of India
Ministry of Finance
06-November-2015 19:47 IST
Government decides to
impose a Swachh Brarat Cess at the rate of 0.5% on all services presently
liable to service tax, with effect from 15th November 2015; Proceeds from this
cess to be exclusively used for Swachh Bharat initiatives
In Budget, 2015, 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.
We are a country of more than 120 crore
people. 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. Ceanliness also has huge impact on public
health. Dirty surrocundings 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 capita).
Increased allocation for Swachh Bharat Abhiyan can prevent many of these
diseases with consequential benefit to one and all.
Study by American Journal of Tropical Medicine
and Hygiene reveals that between 2006 and 2012, India reported an annual
average of 20,474 dengue cases, with direct medical cost of about Rs.3500 crore
per annum.
Swachh Bharat Cess is not another tax but a
step towards involving each and every citizen in making contribution to Swachh
Bharat. In this direction, the Government has decided to impose, with effect
from 15th November 2015, a Swachh Brarat Cess at the rate of
0.5% on all services, which are presently liable to service tax. This will
translate into a tax of 50 paisa only on every one hundred rupees worth of
taxable services. The proceeds from this cess will be exclusively used for
Swachh Bharat initiatives.
RELATED NOTIFICATION IS AS FOLLOWS
[TO BE PUBLISHED IN
THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, the 6th November, 2015
Notification No. 21/2015-Service Tax
G.S.R. —(E).- In exercise of the powers conferred by
sub-section (1) of section 119 of the Finance Act, 2015 (20 of 2015), the
Central Government hereby appoints the 15th day of
November, 2015 as the date with effect from which the provisions of Chapter VI
of the said Act, shall come into force.
[F.No.
354/129/2015 – TRU]
(K Kalimuthu)
Under Secretary to the Government of India
Under Secretary to the Government of India
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, the 6th 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 Swachh 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 15th day of November, 2015.
[F.No. 354/129/2015 – TRU]
(K. Kalimuthu)
Under Secretary to the Government of India
Under Secretary to the Government of India
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