Clarify immediately to avoid confusion and spread of different opinions
WE have come across the following opinions circulated by some leading lawyers:
(i) it seems benefit of Abatement Notification No. 26/2012-ST is not available and Swachh Bharat Cess will be leviable on total value and not abated value. It is advisable to file a representation to get the notification amended.
(ii) Cenvat Credit of Swachh Bharat Cess is not available.
(iii) Cenvat credit cannot be utilized for payment of Swachh Bharat Cess.
Assessees are worried and depend on consultants to advise them and if the Board is stoically silent, all kinds of advices will float around. An assessee who called me up was rather irritated that I couldn't clarify his doubts. “I have to plan my business strategy and revise my contracts”, he told me. Business plans don't happen at the speed with which Board issues notifications.
Board should have thought of all these problems and perhaps should have sought public opinion before hastily thrusting a new tax on the nation in the year of the taxpayer. They had eight months time to do it.
No CENVAT Credit?
It is heard that the view in the Government is that there would be no CENVAT Credit of Swachh Bharat Cess, because the tax is a low 0.5% and the Government wants the whole of it, cascading effect and GST notwithstanding.
And will the Board ever bother to clarify on the balance of Education Cess?