Applicability of krishi kalyan cess

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2016
We have given a service to our clients before 31 May 16 and invoice issued on 31 May 2016 but payment will receive after 15 June 2016, Is Krishi Kalyan Cess applicable on the amount?
IF Yes?

Then KKC will be applicable on all debtors we have. how can i calculate the kkc on them as the income already book ed in past(5 years) and some part of debtors is not covered under service tax. Can we pay the kkc on all the debtors wheater some part of them not cover under service tax?

Vivekanand Kushwaha

Vivekanand Kushwaha (Expert)
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07 June 2016 1) Services has already been provided before 31st May, 2016
2) Invoice has already been raised before 31st May 2016 but payment has been received after 31st May 2016.

In the your case Point of taxation will be invoice or payment which ever is earlier, i.e Krishi Kalyan Cess will not be applicable.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2016 We have given a service to our clients before 31 May 16 and invoice issued on 31 May 2016 but payment will receive after 15 June 2016, Is Krishi Kalyan Cess applicable on the amount?

Are you sure in abobe case KKC will not be applicable?

Rupesh Jain

Rupesh Jain (Expert)
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08 June 2016 payment recd after the KKC applicable then you have to pay the KKC there is no option. its applicable no the service you provided related debtors.