31 May 2016
Dear Experts,
As we know that rate of service tax going to increase to 15% due to new Levy "Krishi Kalyan Cess"
I want to know that, is Krishi Kalyan Cess payable if service has already been rendered, invoice has also been raised but payments of same have not received yet or will will received on or after 01-06-2016.
I am asking this because yesterday I got a text massage from our Telecom operator "Idea" which was like this "Dear Customer, As per Section 161 of Finance Act 2016 the Service Tax stands revised at 15% (Including levy of Krishi Kalyan Cess at 0.5% w.e.f 1st June'16). This will also apply on any unpaid amount as on 1st June'16. We urge you to pay your dues (if any) on or before 31st May'16 to avoid the additional 0.5% charge which will reflect in your next bill."
Request you all, please help me understanding Point of Taxation rule in this regard and it's effect on Krishi Kalyan Cess
Thank You
31 May 2016
KKC not applicbale in two situation Rule 5 of the POTR covers two specific situations where new levy shall NOTbe payable:
Invoice issued and payment received against such invoice before such service becomes taxable; Payment received before the service becomes taxable and invoice has been issued within 14 days of the date when the service is taxed for the first time - See more at: http://taxguru.in/service-tax/krishi-kalyan-cess-applicability-open-issues.html#sthash.HlNEOs99.dpuf
31 May 2016
Thanks for your comment Sir!
I have gone through the link you have shared with us and concluded that we will have to pay KKC on outstanding amounts.
I would like to see more from our other experts.
thanks again!
CAclubindia
