Krishi Kalyan Cess

[ashish yadav]

Dear sir,

we can take the credit krishi kalyan cess.please give me the reply ..

Regards

ashish yadav

[MUKUND THAKKAR]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

NOTIFICATION No. 28/2016 - Central Excise (N.T.)

New Delhi, the 26th May, 2016

[CSSANJAY MALHOTRA]

Dear Mukund,

Perfectly replied...

[Narendra Soni]

Dear Mr.Mukund and Mr.Sanjay.

Thanks for reproducing copy of Notification.

Please suggest:-

A.Whether a manufacture can avail cenvat of KKC paid :-

1. On Input services to service providers.

2. On services under reverse charges to Govt.account.

B.Whether Rebate can be claimed on KKC paid on services used for export of goods.

Urgent please.

[Ganeshan Kalyani]

Sir, the input credit of KKC is not allowed to manufacturer to set-off against central excise duty payable. And also no credit is allowed of the KKC paid under reverse charge mechanism. Further, the KKC paid on input services are eligible for claiming rebate. This is my view. Thanks.

Thanks Sri Mukund Ji, for reproducing the Notification. Thanks.

[KASTURI SETHI]

I endorse the views of Sh.Ganeshan Kalyani, Sir on all aspects. I further elaborate that if a manufacturer is also registered as Service Provider, Service Tax paid on KKC can be utilised for providing output service. Input service credit earned on KKC can be utilised towards KKC only and not towards any other cess or duty.

[Ganeshan Kalyani]

Yes sir a manufacturer in addition to manufacturing also provides Service, say for e.g. if it has a Vacant land it gives it on rent then it is taxable under renting of immovable property. OR in head office if it has ample space and it decides to let out some portion of the area to other dealer then it amounts to renting of immovable property. Thus those manufacturer can avail the input credit on KKC against the KKC output liability. But only if has nexus. Thanks.

AI Summary

Input credit of Krishi Kalyan Cess cannot be set off against excise and is limited to KKC liabilities only. Contributors state that input credit of Krishi Kalyan Cess cannot be set off against central excise duty and is not available for KKC paid under reverse charge; KKC on input services may be rebated for exports. Where a person both manufactures and provides taxable services, KKC credit on inputs may be used against KKC output liability for those services but cannot be applied to other cesses or duties and requires a nexus with the output liability.