Krishi kalyan cess - pending payments

Hi Karan,

The new levy i.e. .5% KKC would be considered under POT rule 5, which states that payment should have been received before the date of effectiveness of the new rate and other conditions are satisfied then only old rates could be taken.

However in your case the payment has been received after the new levy date, hence POT as per Rule 5 would fall after the new levy date and thus the services has to be paid with .5% additional rate.

But It will cause hardship to those service provider whose dues are pending for long and having a lumpsum amount. Though industry is following mixed practice.