Krishi Kalyan Cess

Revision in Service Tax rates W.E.F: 01st June 2016

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Dear Sir/ Madam,

As per the Finance Bill 2016, Government of India has introduced an additional cess called Krishi Kalyan Cess (KKC), which is levied on all services W.E.F: 01st June 2016.

* The current service tax is charged @ 14.5% which includes Service Tax 14% & Swacch Bharat Cess 0.5%.

* The revised service tax will be 15% which includes Service Tax 14%, Swacch Bharat Cess 0.5% & Krishi Kalyan Cess @ 0.5%.

* The KKC will be included in all the invoices which is raised on or after 01st June 2016 for services provided from 01st June 2016.

* The KKC will also be charged according to Reverse Charged Mechanism (RCM), which is payable by the Service Recipient.

For any further clarification you may reply to this mail.