Kkc applicability

Since the service is received before 01 june 2016 and invoice is also raised before 01 june 2016, then Point of taxation would be before 01 june 2016. Hence KKC is not applicable.

Read Rule 4 of Point of taxation of service rules 2012 for better understanding

But payment is received after 01 june 2016 and as per ammendment KKC aill be applicable on every payment received after 01.june 2016.

For KKC Rule 5 of Point of Taxation Rules Apply 

If the Payment is received before 1st june 2016 and Invoice is Issued before 14th June 2016 then KKC will not Apply 

In your case KKC will Apply as payment is received after 1st June 2016.

It means if i have a debtors(income+servicetax) of 2 crore kkc will be applicable on all?

Thanks for replying ,then i need to debit all my clients with kkc, one more thing, Debtors include income with service tax and as they are old one i m unable to seprate them can i debit and pay the kkc on full debtors it also include a little amount of non taxable amount.

As Rule 5 of Point of Taxation does not take into consideration When an invoice has been raised and Services are being provided before 1st June 2016 in this case the  Rule 3 of POT applies as it is the default rule which states that the Point of Taxation is Date of Issue of Invoice or the date when Advance is Received which ever is Earlier. So the Invoice date is point of Taxation

(Remember the point is subject to litigation as the department may take a stand that it is taxable and treat all debtors as taxable)

So If service tax is paid for the debtors before 1st June 2016 then wait for the department clarification and don't pay KKC as it is subject to litigation 
For service tax on unpaid Invoices from 1st May 2016 pay KKC it is better.

Since KKC is new levy, Rule 5 of POTR, 2012 would be applicable. As per sub rule (a) of rule 5 of the said rules, if invoice issued and payment is received then new levy would not be applicable. 

in instant case if invoice is issued and payment is received on or before 31-05-2016 then KKC would be levied.

*would not be levied.

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. We are herewith tabulating the various scenarios for applicability KKC @ 0.5% on services provided: Service completion date Invoice date 

Thanks for Reply, It means If Service have been given before 31.05.16 Invoice issued on 31.05.16 No KKC will be applicable.

Originally posted by : vyjayanthimala
	Sir Services provided/received for the month of May.2016 If Bill raised  on 31/05/2016  or  in 1st week of June.2016.  But payment is  in June.2016. What will be the Status  of KKC ? please clarify mala

KKC is applicable.

Regards

Karanjit Singh | +91-7503588224