What Is The Full Form Of SBC In Law?

SBC full form in law is Swachh Bharat Cess. The SBC is a tax that the Indian government has brought into effect under Section 119 of the Finance Act, 2015. The tax support goes to the Swachh Bharat projects in contributions to keeping India clean and developing sanitation in the country. The government adds a 0.5% tax on all services that are already taxed, starting from November 15, 2015.

Legal Implications and Use:

So, this has got many implications for business and service providers whenever SBC has been introduced. It applies to all services that are taxed except those which are fully free from tax or not included in the list of taxable services. The tax is based on the value of the service, not on the tax amount, which means the more the service costs, the more tax is applied. The businesses are required to show SBC separately on bills, not mixed with service tax. They should also handle their accounts in a manner that keeps SBC records very clear but can’t use SBC to reduce other tax costs using CENVAT credit. The practical application of SBC placed a heavy demand on the businesses since they had to update their billing and accounting systems, which was a tough demand, making it more expensive.