Tax applicability

Hi Ursh*ta,

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

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.

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 

Dear Karan, 

This is the link to the ET notification about KKC

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

 

So we conclude as below 

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

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.