Service tax from 14.5% to 15%

[SURYAKANT MITHBAVKAR]

Bydget 2016 has proposed to impose a cess, called the Krishi Kalyan Cess. @0.5.% on all taxable services.

The new effective service tax will be @15%

Please let us know which date it will be effective and under which nofication.

[Rajagopalan Ranganathan]

Sir,

KKC will come into effect from 01.06.2013.

[KASTURI SETHI]

KKC has been levied vide clause 158 Chapter VI of Finance Bill, 2016 (Now enacted w.e.f.14.5.16). It is applicable from 1.6.16.

[Ganeshan Kalyani]

Sir, Krishi Kalyan Cess is applicable on all taxable services w.e.f. 01.06.2016. This was proposed in Finance Bill 2016 which got assented and become an Act. Thanks.

AI Summary

Krishi Kalyan Cess of 0.5% on taxable services effective June 1, 2016, raising service tax to 15% per Finance Bill 2016. A discussion on a forum addressed the increase in service tax from 14.5% to 15% due to the introduction of the Krishi Kalyan Cess at 0.5% on all taxable services. The query sought clarification on the effective date and notification details. Responses confirmed that the Krishi Kalyan Cess would be effective from June 1, 2016, as per the Finance Bill 2016, which was enacted on May 14, 2016.