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Tax applicability


Urshita Dharod   14 June 2016

Urshita Dharod

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KKC is applicable from June 1, 2016. But as per the clarifications given in ET by the government, the cases where payments that are made after 31.05.16, KKC will be applicable. So should we change the invoice or raise a debit note for this amount ?

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CA Saurabh Singh (Practising Chartered )     14 June 2016

CA Saurabh Singh
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Hi Ursh*ta,

Rightly mentioned by you about the applicability of KKC, you can raise further debit note for the chargeability of the same.

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CA Harshal Totla (Chartered Accountant)     14 June 2016

CA Harshal Totla
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As per rule 4 of point of taxation rules,2011;
in case a taxable service has been provided before the change in effective rate of tax but the invoice has been raised and payment received after change in effective rate of tax, point of taxation shall be date of payment or date of invoice whichever is earliest. But if invoice also been issued prior to change in effective rate of tax and only payment is received after such change then point of taxation shall be date of invoice.
so if your case falls in category 1,yes you need to change the invoice or raise a debit note, if case falls in category 2, then there is no need of doing so.

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karan jit singh (Consultant)     15 June 2016

karan jit singh
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Originally posted by : Ursh*ta Dharod
KKC is applicable from June 1, 2016. But as per the clarifications given in ET by the government, the cases where payments that are made after 31.05.16, KKC will be applicable. So should we change the invoice or raise a debit note for this amount ?

You should make a supplementary invoice to append the invoice amount.

Secondly please specify the date and page of ET its mentioned.


Regards

Karanjit Singh | +91-7503588224 

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Urshita Dharod   16 June 2016

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Dear Karan, 

This is the link to the ET notification about KKC

http://economictimes.indiatimes.com/news/economy/policy/retrospective-tax-impact-of-krishi-kalyan-cess-worries-india-inc/articleshow/52414199.cms

 

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Urshita Dharod   16 June 2016

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So we conclude as below 

But my question is that can we add KKC in an invoice issued before 01.06.16 ??

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CA Saurabh Singh (Practising Chartered )     16 June 2016

CA Saurabh Singh
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Hi Ursh*ta,

Yes, even if service is provided befor 1st of June, but the payment is receive after 1st of June then either you have to raise a supplementary invoice or debit note for charging the same.


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