Swachh Bharat Cess- Point of Taxation for reverse charge?

By Vijay Kumar

WHAT is the point of taxation for Swachh Bharat Cess under reverse charge mechanism?

CBEC in its FAQ clarifies,

Q. 19 How would liability be determined in case of reverse charge services where services have been received prior to 15.11.2015 but consideration paid post 15.11.2015?

Ans. In respect of reverse charge mechanism, SBC liability is determined in accordance with Rule 7 of Point of Taxation Rules, as per which, point of taxation is the date on which consideration is paid to the service provider. Thus, SBC liability in such case will be 0.5% X Value of taxable service.