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Krishi Kalyan Cess @ 0.5 % on all Taxable Services from 1st June

With introduction of  Krishi Kalyan Cess at 0.5%  with effect from  June 1,  2016, effective rate of Service Tax would be  increased and leviable  by 15%.

 

Therefore, now effective rate of Service Tax would be 15% wef 1st June 2016. The Service Provider would be required to mention the breakup of the 15% on Invoices:-

Particulars                                    Amount

Service Tax                                      14%

Swachh Bharat Cess                          0.5%

Krishi Kalyan Cess                             0.5%

Total                                              15%

 

This new Krishi Kalyan Cess shall be applicable on all your payments for services like Rent payment, Restaurant bill payment, Air Travel Agent Internet bill, Telephone bill et


Krishi Kalyan Cess would be exclusively used for financing initiatives relating to improvement of Agriculture and welfare of Farmers.


The proceeds of the Krishi Kalyan Cess shall first be credited to the Consolidated Fund of India and the Central Government may, after due appropriation made by Parliament by law in this behalf, utilize such sums of money of the Krishi Kalyan Cess for such specified purposes.