Which Indian scheme is funded by a 0.5% cess levied on all taxable products since Nov 2015?

Correct option is B

The correct answer is:(B) Swachh Bharat Abhiyan

Explanation:

• In November 2015, the Government of India introduced a 0.5% Swachh Bharat Cess on all taxable services to fund the Swachh Bharat Abhiyan.

• This cess was levied over and above the existing 14% service tax, bringing the total effective tax rate to 14.5% on taxable services.

• The revenue generated from this cess was earmarked for financing and promoting the Swachh Bharat Mission, a nationwide cleanliness campaign launched by Prime Minister Narendra Modi on October 2, 2014.

Information Booster:

• Implementation Date:The Swachh Bharat Cess became effective from November 15, 2015.

• Scope:The cess applied to all taxable services, including air travel, telephony, and dining out, among others.

• Exemptions:Services that were fully exempt from service tax or those covered under the negative list were not subject to this cess.

• Collection and Utilization:The collected cess was credited to the Consolidated Fund of India and used exclusively for the Swachh Bharat initiatives.

Additional Information:

• (A) Stand Up India Scheme:Incorrect. The Stand Up India Scheme was launched in 2016 to promote entrepreneurship among women and Scheduled Castes/Scheduled Tribes, not funded by the Swachh Bharat Cess.

• (C) Kisan Vikas Patra:Incorrect. Kisan Vikas Patra is a savings scheme introduced by the Government of India in 1988 and is not related to the Swachh Bharat Cess.

• (D) Make in India:Incorrect. Make in India is an initiative launched in 2014 to encourage national as well as multinational companies to manufacture in India, and is not funded by the Swachh Bharat Cess.