karan jit singh (Consultant) (1299 Points)
10 June 2016There is mixture of practice in industry on Krishi Kalyan Cess.
My question is whether it would be applicable on Payments received after 1.06.2016, though service rendered and invoice raised before the date 01.06.2016 ??
According to my view , I have studied in depth and finally concluded that KKC would be applicable on payments later received after 01.06.2016 and supplementry invoice have to be raised for such 0.5% KKC.
Please need your opinion !!
CA Saurabh Singh
(Practising Chartered )
(974 Points)
Replied 10 June 2016
Hi Karan,
The new levy i.e. .5% KKC would be considered under POT rule 5, which states that payment should have been received before the date of effectiveness of the new rate and other conditions are satisfied then only old rates could be taken.
However in your case the payment has been received after the new levy date, hence POT as per Rule 5 would fall after the new levy date and thus the services has to be paid with .5% additional rate.
karan jit singh
(Consultant)
(1299 Points)
Replied 11 June 2016
But It will cause hardship to those service provider whose dues are pending for long and having a lumpsum amount. Though industry is following mixed practice.
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