Swachh Bharat Cess will come into effect from 15th November 2015, 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 used for financing and promoting Swachh Bharat initiatives.
Some doubts are being raised with respect to the levy of Swachh Bharat Cess, such as,-
(i) what would be Swachh Bharat Cess on services where service tax is being paid under the alternative rates of service tax?
(ii) what would be the value of taxable services for computation of Swachh Bharat Cess?
(iii) whether reverse charge mechanism would apply for the levy of Swachh Bharat Cess?
(iv) what would be the point of taxation for Swachh Bharat Cess ?
In this regard, it is clarified that answers to the above queries are in the provisions of sub-section (5) of Section 119 of the Finance Act, 2015 by which all the provisions of service tax as contained in Chapter V of the Finance Act, 1994 have been made applicable to Swachh Bharat Cess. It is, thus, very clear that all the provisions including those related to computation of taxable value, assessment, exemption, payment, penalty applicable to service tax would also apply in respect of Swachh Bharat Cess.
Service tax is presently levied at alternative rates in respect of service provided by air travel agents, life insurance service, service in relation to sale/purchase of foreign exchange including money changing and service by lottery distributors/selling agents, subject to fulfilment of conditions prescribed under the Service Tax Rules. Option has been provided for levy of Swachh Bharat Cess also at alternative rates in respect of the above mentioned services. The alternate rate of Swachh Bharat Cess would be:
Service Tax Liability (at the alternate rate) X 0.5/14.
As regards the taxable value for the levy of Swachh Bharat Cess, it would be the same on which service tax is levied. Swachh Bharat Cess would be calculated on abated value or value arrived at under the Service Tax (Determination of Value) Rules, 2006, as the case may be. For example, the effective Swachh Bharat Cess in respect of services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, having the facility of air–conditioning or central air-heating in any part of the establishment, would be 0.5% of 40% i.e 0.2%. The cumulative service tax and Swachh Bharat Cess liability would be 5.8% (14.5% of 40%) of the total amount charged.
Similarly, a person liable to pay service tax on reverse charge basis would be laible to pay Swachh Bharat Cess also on reverse charge basis. As regards Point of Taxation, since this levy has come for the first time and all services (except those services which are in the Negative List or are wholly exempt from service tax) are being taxed, it is a new levy, which was not in existence earlier. Rule 5 of Point of Taxation Rules would be applicable in this case. Therefore, in case 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 case 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. 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 not issued by 29th Nov, 2015.
Thus, it may be seen that all issues relating to Swachh Bharat Cess are addressed in the Service Tax provisions itself by virtue of the applicability of Chapter V of the Finance Act, 1994 and the rules made there under.
F. No. 4/3/2009-JCA Government of India Ministry of Personnel, Public Grievances and Pensions Department of Personnel & Training Establishment (JCA-l) Section
North Block, New Delhi Dated November 2, 2015
Subject- Functioning of Departmental Councils- regarding
The undersigned is directed to refer to this Departments D.O. letter of even number dated 23.07.2012 (copy enclosed) regarding holding of meetings of Departmental Councils regularly with a view to make effective use of Joint Consultative Machinery (JCM) Scheme. Secretary, DoPT, had also vide his DO letters of even number dated 03.12.2012, 26.07.2013 and 17.02.2015 requested to promote this interaction more proactively through regular meetings of Departmental/Office Councils under the Ministry/Department.
2. The JCM Scheme provides for Departmental Councils at the level of individual Ministries/ Departments, including their attached and subordinate offices. The Staff Side of JCM, however, has been remonstrating that regular dialogue with the Staff Side through the mechanism of Departmental Councils at Ministry/Department level is not happening. Meetings of Departmental Council are essential as they help in resolving differences between Government and the Staff Side.
3. It is requested that suitable instructions may please be issued to hold meetings of Departmental Councils on regular basis.
Sub:- Observance of All India protest day on 19th November 2015
All of you may recall that the NJCA in its meeting held on 30th September 2015 in Delhi after considering the delay in submission of the report of the 7th CPC as also broadly taking stock the speculating and detail deliberations, unanimously decided to defer the proposed Indefinite General Strike of the Central Government Employees till next Budget Session and symmetrically it was also resolve to observe 19th November 2015 as Joint Nation wise protest day to all the country to press upon the Government of India to resolve the long pending legitimate demands of all the Government Employees.
All of you are therefore accordingly requested to take all necessary steps to jointly observe protest day on 19th November 2015. As per decision taken by the NJCA in the said meeting the member of the NJCA shall stage one day Dharna at Jantar Mantar in New Delhi on the said day.
Charter of Demands
1. Effect wage revision of Central Government employees from 1.1.2014 accepting the memorandum of the staff side JCM; ensure 5-year wage revision in future; grant interim relief and merger of 100% of DA. Ensure submission of the 7th CPC report with the stipulated time frame of 18 months; include Grameen Dak Sewaks within the ambit of the 7th CPC. Settle all anomalies of the 6th CPC.
2. No privatisation, PPP or FDI in Railways and Defence Establishments and no corporatisation of postal services;
3. No Ban on recruitment/creation of post.
4. Scrap PFRDA Act and re-introduce the defined benefit statutory pension scheme.
5. No outsourcing; contractorisation, privatization of governmental functions; withdraw the proposed move to close down the Printing Presses; the publication, form store and stationery departments and Medical Stores Depots; regularise the existing daily rated/casual and contract workers and absorption of trained apprentices;
6. Revive the JCM functioning at all levels as an effective negotiating forum for settlement of the demands of the CGEs.
7. Remove the arbitrary ceiling on compassionate appointments.
8. No labour reforms which are inimical to the interest of the workers.
9. Remove the Bonus ceiling;
10. Ensure five promotions in the service career.
Report of the protest may be forwarded to this office accordingly.
With best wishes for Diwali, Chat, Bhai Duj and Guru Parv.
Dept of Posts has constituted Gramina Dak Sewak Committee to go through the issues relating to Gramina Dak Sewaks . Now the Postal Directorate has appointed Sri T.Q.Mohammad (IPoS 1994), PMG, Agra region UP Circle as Secretary of the said Gramina Dak Sewak Committee Pl see the orders below:-