Swachh Bharat Cess - Govt Corrects error in Exemption Notification
THERE are two kinds of exemption in Service Tax. One is the general exemption under Section 93(1) and the other is a special exemption under exceptional circumstances (like floods), under Section 93(2).
By Notification No. 22/2015-Service Tax, dated 6.11.2015, the Government:
1. Exempted Swachh Bharat Cess in excess of 0.5 percent.
2. Clarified that there would be no Swachh Bharat Cess on services which are exempt from service tax by a notification issued under sub-section (1) of section 93, and
3. Forgot to clarify that there would be no Swachh Bharat Cess on services which are exempt from service tax under sub-section (2) of section 93.
This lapse is now corrected.
Notification No. , Dated: February 17, 2016