The Central Government vide Notification No. 35/2016 - ST dated June 23, 2016 has exempted taxable services for which the invoice for the service has been issued on or before the 31st May, 2016, from the whole of Krishi Kalyan Cess provided that provision of service has been completed on or before the 31st May, 2016.
It must be noted that this Notification settled the issue of KKC being payable on services provided and invoices issued prior to 1st June 2016 and payment received after the said date. Now if only payment is received after 31st May 2016 KKC will not be required to be paid on that account.
