TaxTMI 
TaxTMI 
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
Krish Kalyan cess - cenvatable?
21 Apr 2016 
13 Replies 
7985 Views Asked by
Krishi Kalyan Cess credit available but manufacturers may be unable to utilise it against excisable outputs.
Krishi Kalyan Cess applies to taxable services and is not leviable on excisable goods. Manufacturers may lawfully take Cenvat credit of KKC paid on input services but cannot utilise that credit against excise outputs because KKC is not chargeable on manufactured goods; only output service providers can utilise KKC credit for payment of KKC on output services. Unutilised KKC credit does not lapse under existing rules and may be accumulated pending statutory amendment or future taxable service activity by the manufacturer. (AI Summary)
Krishi Kalyan Cess applies to taxable services and is not leviable on excisable goods. Manufacturers may lawfully take Cenvat credit of KKC paid on input services but cannot utilise that credit against excise outputs because KKC is not chargeable on manufactured goods; only output service providers can utilise KKC credit for payment of KKC on output services. Unutilised KKC credit does not lapse under existing rules and may be accumulated pending statutory amendment or future taxable service activity by the manufacturer. (AI Summary)