Krish Kalyan cess - cenvatable?

[venkat eswaran]

Dear All,

We are mfg units and taking ser tax credit. The new krish kalyan cess 0.5% of service tax in cenvatable? We can take ser tax credit or like SB cess not cenvatable.

Expecting ur reply

Thanks in advacne

Venkat

AI Summary

Debate on Krishi Kalyan Cess (KKC) CENVAT credit eligibility for manufacturers; potential amendments in Cenvat Credit Rules discussed. A discussion on whether the Krishi Kalyan Cess (KKC) is eligible for CENVAT credit reveals differing opinions. Some participants assert that manufacturers cannot utilize KKC credit, as it applies only to service providers. The cess, effective from June 1, 2016, is levied on taxable services, not on manufactured goods. While manufacturers can take credit for KKC paid on input services, they cannot use it unless they provide taxable services in the future. The conversation highlights the need for potential amendments in Cenvat Credit Rules to clarify credit utilization for manufacturers.