According to the last Finance Budget 2016-17 laid before the Parliament, the Honourable Finance Minister had introduced a Krishi Kalyan Cess (KKC). This tax would be 0.5 per cent of all taxable services. The proceeds of this cess would be exclusively used for financing initiatives relating to improvement of agriculture and welfare of farmers.
Krishi Kalyan Cess will come into force from 1st June, 2016.
What you need to do to get ready for this change in Service Tax Rate?
Nothing, if your Apartment Accounting is on ADDA. ADDA billing and accounting package is already prepared for this change. Invoices posted on or after 1st June 2016, if Service Tax is applicable, 0.5% Krishi Kalyan Cess (and 0.5% Swachh Bharat Cess) will also get posted automatically along with the Service Tax.
We have created a System account called Krishi Kalyan Cess in all the ADDAs. ADDA which provides you with complete Service Tax Calculation Automation, from June 1,2016, will automatically handle Krishi Kalyan Cess and along with Service Tax, Krishi Kalyan Cess will be automatically posted.
For any further queries and help, please contact us here.