As per Finance Ministry Notification dated 06.11.2015 regarding levying 0.5% towards Swachh Bharat Cess on all service sector, Railway Board issued commercial circular implementing the additional cess with effect from 15.11.2015. 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.
Central Government issued clarification on Swachh Bharat Cess @ 5% on all services, which are presently liable to service tax with effect from 15.11.2015. Doubts in respect to the levy of Swachh Bharat Cess clarified.
“The government has decided to impose, with effect from November 15, 2015, a Swachh Bharat Cess at the rate of 0.5 per cent on all services, which are presently liable to service tax,” a Finance Ministry statement said.