Krishi kalyan cess on debtors and creditors balance

Service Tax (Legacy) 649 views 10 replies
i would like to know whether Krishi Kalyan Cess will be applicable for Debtors Balance lying in the books as on 1.06.2016, service is already provided and invoice is raised, Balance amount yet to be received from the customer. Insight on this will be helpful
Replies (10)
plzz refer POT rule..
that was very thought provoking thank you

https://ckbajpai.blogspot.in/2016/05/a-note-on-krishi-kalyan-cess-kkc.H T M L?m=1

https://ckbajpai.blogspot.in/2016/05/a-note-on-krishi-kalyan-cess-kkc.H T M L?m=1

Krishi Kalyan Cess (KKC) is applicable w.e.f 01.06.2016.  Accordingly, it does not affect on Sundry Debtors Balance as on 31.05.2016. KKC is taxable where service tax is applicable. 

 Secondly, service tax is not related with sundry debtors. Because it is taxable on Revarse Charge Mechanism i.e on expenses, it also  not applicable on sale (unrealised appears under Sundry Debtros), All services are not taxable that amount is also shown under Sundry Debtors in balance sheet and so on.

Refer below link,

/articles/no-krishi-kalyan-cess-on-debtors-as-on-13th-may-2016-part-2-26998.asp

very helpful thanks!!
Very useful information

KKC would be applicable as per Rule 5 of Point of Taxation Rules, 2011 since payment for the bal. on 31/05/16 would be received after 01/06/16.

As per the Notification No. 35/2016-ST dated 23/06/2016, No KKC if Invoice is raised & services are rendered on or before 31/05/2016. It means no KKC on debtors as on 31/05/2016


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