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<h1>Krishi Kalyan Cess introduced on taxable services, altering credit and compliance obligations for service providers and recipients.</h1> Krishi Kalyan Cess is proposed to be levied on taxable services with effect from 1 June 2016 and input service credit of the cess may be used to discharge the cess on output services. The Finance Bill, 2016 amends Chapter V of the Finance Act to omit certain Negative List entries (notably stage carriage and specified international carriage), relocates specified educational exemptions into the general exemption notification, declares assignment and transfers of radio frequency spectrum as a declared service, and strengthens rule making powers for Point of Taxation. Significant revisions to Cenvat Credit Rules simplify reversal mechanics, broaden capital goods and input definitions, allow certain shipping and spectrum credit treatments, and provide distribution and warehouse mechanisms for input service credit.