Levy of Swachh Bharat Cess on the service tax leviable on transportation passengers by rail – Service Tax increase is not leviable on tickets issued prior to 15-11-2015.
Ministry of Railways issued Commercial Circular No. 63 of 2015 implementing 5% levy towards Swachh Bharat Cess with effect from 15.11.2015.
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(Commercial Circular No. 63 of 2015)
New Delhi, dated 13.11.2015
The General Managers,
All Zonal Railways.
SUB: Levy of Swachh Bharat Cess on the service tax leviable- on transportation passengers by rail.
i. Commercial Circular No.32 of 2015 dated 26.05 .2015.
ii. Ministry of Finance Notification Nos. 21 & 22/2015- Service Tax dated 06-11-2015.
Ministry of Finance vide their Notification Nos. 21 & 22/2015-Service Tax dated 06-11-2015 have decided that Swachh Bharat Cess @ 0.5% shall be levied on the value of all taxable services w.e.f. 15-11-2015.
2. Accordingly, following changes shall be made in the Commercial Circular No.32 of 2015 dated 26-05-2015:-
“Service tax of 14% and Swachh Bharat Cess of 0.5 % are chargeable on 30% of total passenger fare equivalent to 4.35% of the total fare in first class and all AC classes.”
3. The increase in service tax shall be applicable w.e.f. 15-11-2015 on the tickets issued/booking made on or after 15.11.2015. Service Tax increase is not leviable on tickets issued prior to 15-11-2015.
4. Other terms and conditions shall remain the same as per various circulars/notifications issued on this subject.
5. This issues with the concurrence of Finance Directorate of Ministry of Railways.
6. Necessary instructions shall be issued to the all concerned.
Dy. Director Traffic Commrcial-II