KRISHI KALYAN CESS

What is the Chapter for KRISHI KALYAN CESS under Finance Bill 2016 ?

KRISHI KALYAN CESS is levied as per CHAPTER VI of Finance Bill 2016

What is the date of applicability of KRISHI KALYAN CESS ?

It shall come into force on the 1st day of June, 2016.

What is the rate of KRISHI KALYAN CESS  and on what services it has been levied ?

There shall be levied and collected a cess to be called the Krishi Kalyan Cess, as service tax on all or any of the taxable services at the rate of 0.5 per cent. on the value of such services .

What is the purpose of imposing  KRISHI KALYAN CESS ?

 KRISHI KALYAN CESS  has been imposed for the purposes of financing and promoting initiatives to improve agriculture or for any other purpose relating thereto.

Where will the proceeds of  KRISHI KALYAN CESS will be credited ?

The proceeds of the Krishi Kalyan Cess levied under sub-section (2) of secton 158 shall first be credited to the Consolidated Fund of India and the Central Government may, after due appropriation made by Parliament by law in this behalf, utilise such sums of money of the Krishi Kalyan Cess for such purposes specified in sub-section (2) of Secton 158, as it may consider necessary

What are the rules for collecting KRISHI KALYAN CESS ?

The provisions of Chapter V of the Finance Act, 1994 and the rules made thereunder, including those relating to refunds and exemptions from tax, interest and imposition of penalty shall, as far as may be, apply in relation to the levy and collection of the Krishi Kalyan Cess on taxable services, as they apply in relation to the levy and collection of tax on such taxable services under the said Chapter or the rules made thereunder, as the case may be. Section 158(5)