Krishi Kalyan Cess 0.5%- Additional from 1 June 2016 on services
New Delhi:- During Budget speech,2016 hon’able finance minister Mr. Arun Jaitley proposed Krishi Kalyan Cess on services. Now from 1 June 2016 it is effective.
“I propose to impose a cess called Krishi Kalyan Cess at 0.5 per cent on all taxable services, the proceeds of which would be exclusively used for financing initiatives relating to improvement of agriculture and welfare of farmers,” Jaitley had said in his budget speech.
After this the total service tax rate comes to 15% from existing 14.5 %
Also after imposition of this additional cess. The tax structure would be
Total Invoice Value XXX
Service Tax 14%
Swaach Bharat Cess 0.5%
Krishi Kalyan Cess 0.5%
Total inclusive tax xxx
New Accounting Codes also have been allotted by Central Board of Excise and Custom(CBEC) to Krishi Kalyan Cess –
00441510 (Other Receipts),
Below is the notification
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,
PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)
NOTIFICATION No. 27/2016-
Service Tax New Delhi, the 26th May, 2016 G.S.R.….(E).—In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994) read with sub-section (5) of section 161 of the Finance Act, 2016 (28 of 2016), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby provides that notification No. 30/2012 – Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 472 (E), dated the 20th June, 2012 shall be applicable mutatis mutandis for the purposes of Krishi Kalyan Cess.
This notification shall come into force from the 1 st day of June, 2016.
[F.No. B-1/18/2016 – TRU] (Anurag Sehgal) Under Secretary