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Krish kalyan cess

murali nellore (accountant) (64 Points)

05 December 2016

Hi Sir,

Please Sugget on my Query,

1. Can we Claim the Swatchh Bharat Cess & Krishi Kalyan Cess input

kindly confirm.

regards

murali

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8 Replies

naveen12345 (ca ipcc) (28 Points)
Replied 05 December 2016

No, we can charge it as an expenditure to profit & loss statement. But cannot claim as input tax credit.

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murali nellore (accountant) (64 Points)
Replied 05 December 2016

Hi Naveen,

Thanks, even Krishi Kalyan Cess also?

Regards

Murali

naveen12345 (ca ipcc) (28 Points)
Replied 05 December 2016

Yeah same treatment in case of both swatchh bharat and krishi kalyan cess.

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 07 December 2016

Credit of Krishi Kalyan cess can be taken. It can be utilized only against krishi kalyan cess.

murali nellore (accountant) (64 Points)
Replied 07 December 2016

Ok, can you provde the releated documents if possiable on this regards

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shubham Pahuja (Chartered Accountant) (236 Points)
Replied 07 December 2016

We can take credit of KKC but not of Swatch Bharat cess

Attached File : 1226898 20161207143559 pwc news alert 27 may 2016 cbec clarifies many issues on krishi kalyan cess.pdf downloaded: 161 times

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 07 December 2016

Read the bolded sentence of Cenvat Credit rules:

3 . (1) A manufacturer or producer of final products or a provider of 19[output] service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of—

(i)		the duty of excise specified in the First Schedule to the Excise Tariff Act, leviable under the Excise Act:
		Provided that CENVAT credit of such duty of excise shall not be allowed to be taken when paid on any goods—
(a)	in respect of which the benefit of an exemption under Notification No.1/2011-CE, dated the 1st March, 2011 is availed; or
(b)	specified in serial numbers 67 and 128 in respect of which the benefit of an exemption under Notification No. 12/2012-CE, dated the 17th March, 2012 is availed;]
(ii)			the duty of excise specified in the Second Schedule to the Excise Tariff Act, leviable under the Excise Act;
(iii)			the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978);
(iv)			the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957);
(v)			the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001);
(vi)			the Education Cess on excisable goods leviable under section 91 read with section 93 of the Finance (No. 2) Act, 2004 (23 of 2004);
(via)			the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 (22 of 2007);]
(vii)			the additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of excise specified under clauses (i), (ii), (iii), (iv), (v) [, (vi) and (via)]:
			[***]
[(viia)			the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act [***] :
			Provided that a provider of [output] service shall not be eligible to take credit of such additional duty;]
(viii)			the additional duty of excise leviable under section 157 of the Finance Act, 2003 (32 of 2003);
(ix)			the service tax leviable under section 66 of the Finance Act;
[(ixa)			the service tax leviable under section 66A of the Finance Act;]
[(ixb)			the service tax leviable under section 66B of the Finance Act;]
(x)			the Education Cess on taxable services leviable under section 91 read with section 95 of the Finance (No. 2) Act, 2004 (23 of 2004);
[(xa)			the Secondary and Higher Education Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007); and]
[(xi)			the additional duty of excise leviable under [section 85 of Finance Act, 2005 (18 of 2005),]]

paid on—

(i)		any input or capital goods received in the factory of manufacture of final product or [by] the provider of output service on or after the 10th day of September, 2004; and
(ii)		any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004,

including the said duties, or tax, or cess paid on any input or input service, as the case may be, used in the manufacture of intermediate products, by a job-worker availing the benefit of exemption specified in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 214/86-Central Excise, dated the 25th March, 1986, published in the Gazette of India vide number G.S.R. 547(E), dated the 25th March, 1986, and received by the manufacturer for use in, or in relation to, the manufacture of final product, on or after the 10th day of September, 2004 :

[Provided that the CENVAT credit shall be allowed to be taken of the amount equal to central excise duty paid on the capital goods at the time of de-bonding of the unit in terms of the para 8 of notification No. 22/2003-Central Excise, published in the Gazette of India, part II, Section 3, sub-section (i), vide number G.S.R. 265(E), dated, the 31st March, 2003.]

Explanation.—For the removal of doubts it is clarified that the manufacturer of the final products and the provider of output service shall be allowed CENVAT credit of additional duty leviable under section 3 of the Customs Tariff Act on goods falling under heading 98.01* of the First Schedule to the Customs Tariff Act.

[ (1a) A provider of output service shall be allowed to take CENVAT credit of the Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016); ]