KKC IS APPLICABLE ON ALL DEBTORS FOR SERVICE AS ON 01.06.2016

Point Of Taxation in case of Krishi Kalyan Cess (KKC), applicable from 1st June is a burning issue and should be noted as follows – For Service Providers – KKC Shall be covered under Rule 5 of Point of taxation Rules 2011 (POTR). It is amazing but true that even though KKC is new levy and not new service, yet the Government has extended the scope of this rule by inserting two explanations resulting which the new levy is covered under the ambit of Rule 5 from 1st March 2016. The GIST is as follows:

It is pertinent to note that it does not over the situation when both completion of service and date of issue of invoice are prior to the date from service becoming taxable. Only date of invoice and receipt of Payment are to be considered for the purpose of Rule 5.