SAP Note No.

2133774

13.11.2015

Page 1

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Number
Version

2133774
3

Processor
Processing Status
Implement. Status

new
Can be implemented

Language
Short Text

EN
Swachh Bharat Cess on Services Vide Notification No.
21/201

Component

XX-CSC-IN-MM

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Long Text
Symptom
Swachh Bharat Cess(SBCess) has been introduced in Finance Act, 2015
during Indian Union Budget 2015-16.
Vide Notification No. 21/2015 ST dt. 6.11.2015 the same has been
notified effective from November 15, 2015.
The effective rate is 0.5% on the value/cost of services by Notification
No. 22/2015. SBCess input credit is not allowed at this momen
t as CENVAT Credit laws are not amended.
As per Notification No.23/2015-ST, SBCess is relevant for Abatements
scenarios.
As per Notification No.24/2015-ST, SBCess is relevant for Reverse
Charge scenarios.
Reason and Prerequisites
Reason: This is a legal change for all taxable services in India.
Prerequisite SAP Note: 2133639.
Solution
Refer the attachment 'Customization.docx' and carry out the steps for
creating pricing/tax procedure objects and configurations. This
would manage service tax invoices with SBCess posting(including Reverse
Charge(RCM) scenarios)
Implement SAP Note 2133639 and follow the steps mentioned in this SAP
Note for implementing DDIC changes
Implement the Correction Instruction relevant for your release. This
is relevant for customers using service tax category determinati
on feature
Take care of Service tax Abatement scenarios at your end by
calculating SBCess for applicable scenarios. Abatement is managed by
part
ial/alternate service cost/value, as per the abatement law.
Notes:
For input side(MM Side), you have to decide whether SBCess to be
posted to Service Expense or separate tax G/L accounts. The customiz
ations for both options are available in the attachment
'Customization.zip' . SBCess input credit is not allowed at this

SAP Note No. 2133774

13.11.2015

Page 2

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moment(as CEN
VAT Credit laws are not amended)
Refer the attachment 'Notifications_SBCess_2015.docx' for SBCess
notification details
Refer the attachment 'SPRO_India.docx ' for sample IMG/SPRO
customization details
Refer to SAP Note 2136624 for FAQ on tax structure changes
Other terms
Swachh Bharat Cess, Swachh Bharat, service tax, service, SBCess, 2015,
2015-16, SAP Note 2132309, master Note, budget, union budget,
2015-16, 2015, legal change, LC, CESS, CIN, India, MIRO, FB60, FB70,
VF01, Notification No. 21/2015, Notification No. 22/2015, 21/20
15, AT2, AT3, No.23/2015-ST, No.24/2015-ST, No.25/2015-ST.
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Valid Releases
SAP Application
600
602
603
604
605
606
616
617

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Links to Support Packages
Software Component

Release

Package Name

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