The Chaos Surrounding Krishi Kalyan Cess (KKC) Now Cleared

KC
Khaitan & Co LLP

Contributor

  • A leading full-service law firm with over 560 professionals with Pan-India coverage through offices in Mumbai, Delhi, Bengaluru and Kolkata
  • Lawyers and trusted advisors to leading business houses, multinational corporations, global investors, financial institutions, governments and international law firms
  • Responsive and relationship driven approach to client service on critical issues and along the business life cycle
  • Specialists with deep sector, domain and jurisdictional knowledge to provide effective business solutions
Krishi Kalyan Cess (KKC) was levied @ 0.5% on all taxable services with effect from 1st June 2016.
India Tax

Krishi Kalyan Cess (KKC) was levied @ 0.5% on all taxable services with effect from 1st June 2016.

As per the provisions of Point of Taxation Rules 2011, KKC is liable to be paid on all amounts received on or after 1st June 2016 irrespective of the actual date of provision of service or date of invoice. This necessitated issuance of supplementary invoice to collect KKC from the service recipient or a situation where service provider would have to pay the same from its own pocket.

To mitigate hardship, the Government vide Notification 35/2016 – ST dated 24 June 2016 has exempted all taxable services from KKC where invoice was issued and service was provided on or before the 31 May 2016.

Comment

This exemption shows the Government's commitment to mitigate hardship of the business.

The content of this document do not necessarily reflect the views/position of Khaitan & Co but remain solely those of the author(s). For any further queries or follow up please contact Khaitan & Co at legalalerts@khaitanco.com

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More