Exemption from Krishi Kalyan Cess
Krishi Kalyan Cess (KK Cess) was levied at the rate of 0.50% on the value of all taxable services with effect from June 01, 2016.
Union Government vide Notification No. 35/2016 – ST dated June 23, 2016, has exempted taxable services from the levy of KK Cess if the following conditions are satisfied:
- Invoice is issued on or before May 31, 2016; and,
- Provision of service is completed on or before May 31, 2016
This addresses the practical difficulty arising due the amendment in Rule 5 of the Point of Taxation Rules, 2011 (‘POT Rules’) which required KK Cess to be paid on the services which were provided before June 1, 2016, however payment in respect of which were not yet realized.