The effective rate of service tax rate w.e.f 15th November, 2015 will be 14.5% as per Notification No.21/2015 due to the introduction of Swachh Bharat Cess @ 0.50%. Please note the following with regard to the SBC introduced.
1) SBC needs to be charged separately on the invoice, accounted for separately in the books of account and paid separately under separate accounting code. SBC may be charged separately after service tax as a different line item in the invoice.
2) It can be accounted and treated similarly to Education cess.
3) The credit of SBC cannot be availed. Further, SBC cannot be paid by utilizing credit of any other duty or tax.
4) In cases where payment has been received and invoice is raised before the service becomes taxable, i.e. prior to 15th November, 2015, there is no liability of Swachh Bharat Cess.