Tuesday 31 May 2016

Change in Service Tax Rates From 1st June 2016 - Krishi Kalyan Cess

he Finance Act, 2016 under Chapter VI has introduced a new cess named ‘Krishi Kalyan Cess’ (KKC) on all taxable services at the rate of 0.5% of the value of such services for the purposes of financing and promoting initiatives to improve agriculture or any other purpose. This cess would come into force from 01.06.2016 and would be levied and collected ‘as service tax’ on the value of all taxable services. This cess would be in addition to any cess or service tax leviable on such taxable services. 

  • KKC will have to be paid on
    • outstanding balance as on 31st May, 2016 for which payment is to be received after 01st June, 2016;
    • payments received before 01st June, 2016 but invoice for the same is raised after 14th June, 2016
  • Under reverse charge KKC will have to be paid along with ST @ 14% and SBC @ 0.5% as and when payment is made to the party.
  • Accounting Code for payment of KKC is as under:
Sr. No.KrishiKalyanCess (Minor Head)Tax CollectionOther Receipts (Interest)Deduct RefundsPenalties

No comments:

Post a Comment

New Tax Regime or Old – What should you choose?

The budget 2020 saw the finance minister Nirmala Sitraman announce a new tax regime with more tax slabs and lower tax rates. This was long...