Krishi kalyan cess

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2016 Sir/Madam,
My Client is a Manufacturing entity, and they are liable to pay krishi Kalyan Cess from 01.06.2016 under RCM for the input services. Whether this cess paid on inputs can be utilised for payment of excise duty?.

Thanking you,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 May 2016 This cess paid on input service can't be utilised for payment of excise duty.
Only service provider can take cenvat credit on it while paying the cess.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 May 2016 Krishi Kalyan Cess is proposed to be levied with effect from 1st June, 2016 on any or all the taxable services at the rate of 0.5% on the value of such taxable services. Credit of Krishi Kalyan Cess paid on input services shall be allowed to be used for payment of the proposed Cess on the service provided by a service provider.

See Link: http://indiabudget.nic.in/ub2016-17/cen/dojstru2.pdf

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