Dear All,
This is to inform you all that the Central Government has introduced levy of Krishi Kalyan Cess (KKC) with effect from 01-Jun-2016. KKC shall be levied @ 0.5% on value on taxable service. Unlike SBC, credit of KKC can be availed for payment of output KKC only.
| Service completion date | Invoice date | Consideration date | Levy of KKC | Remarks |
| 31-May-16 | 1-Jun-16 | 1-Jun-16 | No | On a plain reading, KKC may be said as applicable. However, one can defend on the principle that KKC cannot be levied or charged when the services itself was completed prior to levy and invoice has been raised within 14 days. |
| 31-May-16 | 15-Jun-16 | 31-May-16 | Yes | Invoice not raised within 14 days |
| 31-May-16 | 13-Jun-16 | 31-May-16 | No | |
| 31-May-16 | 31-May-16 | 31-May-16 | No |
| Particulars | Calculation | Amount |
| Value of Taxable Service | 10000 | |
| Service Tax | "10000*14%" | 1400 |
| Swachh Bharat Cess | "10000*0.5%" | 50 |
| Krishi Kalyan Cess | "10000*0.5%" | 50 |
| Total Value Including Taxes | 11500 |
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