POT of KKC

[Sanjay Aggarwal]

Dear Sir,

Please advise me, whether Point of Taxation of KKC will be goveren by Rule 4 or Rule 5 of Point of Taxation Rule 2011 ?

AI Summary

Debate on Point of Taxation for Krishi Kalyan Cess concludes Rule 5 applies, overriding Rule 7 for service receivers. A query about the Point of Taxation (POT) for Krishi Kalyan Cess (KKC) was raised, focusing on whether Rule 4 or Rule 5 of the POT Rules 2011 applies. The consensus among participants, including experts, was that Rule 5 is applicable for new levies like KKC. Rule 5 outlines that no tax is payable if the invoice and payment are completed before the service becomes taxable. There was a discussion about Rule 7's applicability for service receivers, but it was concluded that Rule 5 overrides it. The forum emphasized the dynamic nature of indirect tax laws and the importance of continuous learning.