Kkc applicability at glance

Originally posted by : CA Ankur Maheshwari
	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

Hi ankur

I am disagree with your first case, as the consideration(payment ) is made on 1.06.2016, thus KKC would be applicable ,irresepective of date of invoice. 

Kindly rectify .

Regards

Karanjit Singh | +91-7503588224

Dear Karanjit ,

Please find the further FAQ, hope it will solve your query.

Happy to see your reply , will keep expectinf the same for keeping oneself better updated

Br/Ankur

Hi CA ankur

I know your answer would be on the basis of prior judgement, but for your information these judgment are before amendments made on rule 5 , as rule 5 also applicable on new taxes thus KKC would be chargeable.

I know this debate can only be put to rest if the Central Government can bring out a clarification in this regard. But how would you tackle the same if further after few months CG clarify to charge KKC on pending payments. In such case you would not be able to recover the same whose payment come in between these dates.

Thanks & Regards

Karanjit Singh | +91-7503588224