TaxTMI 
TaxTMI 
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 ?
POT of KKC
27 May 2016 
17 Replies 
6045 Views Asked by
Point of taxation rule 5: new cess applies when invoice or payment occur after the effective date; limited transitional exceptions apply.
The Krishi Kalyan Cess is a new levy and, under Point of Taxation Rules, 2011, Rule 5 governs its transitional application: tax is not payable where invoice and payment both precede the levy, and is also not payable where payment precedes the levy and invoice is issued within fourteen days; outside these exceptions the levy applies. Interaction with reverse charge and a proviso to Rule 7 addressing change in liability was debated, but practitioners largely concurred that Rule 5 controls the KKC transition. (AI Summary)
The Krishi Kalyan Cess is a new levy and, under Point of Taxation Rules, 2011, Rule 5 governs its transitional application: tax is not payable where invoice and payment both precede the levy, and is also not payable where payment precedes the levy and invoice is issued within fourteen days; outside these exceptions the levy applies. Interaction with reverse charge and a proviso to Rule 7 addressing change in liability was debated, but practitioners largely concurred that Rule 5 controls the KKC transition. (AI Summary)