02 August 2024
The **Krishi Kalyan Cess** was introduced by the Government of India to fund agricultural and rural development. It was applicable from June 1, 2016, and was levied at 0.5% on the value of taxable services.
Given the details you provided, let’s analyze the applicability of Krishi Kalyan Cess (KKC) to your situation:
### **Scenario Analysis**
- **Service Tax Payable for May**: You have made provisions for the service tax payable for the month of May, and the payment was made in June. - **Payment Date**: Payment was made on June 14, 2015, for the service tax pertaining to May.
### **Applicability of Krishi Kalyan Cess**
1. **Effective Date of Krishi Kalyan Cess**: - Krishi Kalyan Cess came into effect from **June 1, 2016**. Therefore, any service tax liability pertaining to periods before this date (i.e., up to May 31, 2016) would not attract Krishi Kalyan Cess.
2. **Tax Period and Applicability**: - Since your service tax liability is for the month of May 2015 and payment was made in June 2015, this falls before the effective date of Krishi Kalyan Cess. - Therefore, Krishi Kalyan Cess would **not** be applicable to the service tax payable for May 2015, even though the payment was made in June 2015.
### **Conclusion**
- **For Service Tax for May 2015**: Krishi Kalyan Cess does not apply to this period because the cess was introduced from June 1, 2016. - **Future Considerations**: For any service tax liability arising after June 1, 2016, Krishi Kalyan Cess would be applicable and should be calculated accordingly.
For any further clarifications or updates on tax regulations, always refer to the latest notifications or consult a tax professional.
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