TaxTMI 
TaxTMI 
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.
Service tax from 14.5% to 15%
31 May 2016 
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Krishi Kalyan Cess raises the effective service tax rate and applies to all taxable services from commencement.
Krishi Kalyan Cess was introduced as an additional levy on all taxable services, implemented by the Finance Bill, 2016 (clause 158, Chapter VI) and given legal effect upon enactment in May 2016, with administrative application from the statutory commencement date; the cess is imposed on the same taxable event and base as service tax and is collectible through existing service tax compliance mechanisms. (AI Summary)
Krishi Kalyan Cess was introduced as an additional levy on all taxable services, implemented by the Finance Bill, 2016 (clause 158, Chapter VI) and given legal effect upon enactment in May 2016, with administrative application from the statutory commencement date; the cess is imposed on the same taxable event and base as service tax and is collectible through existing service tax compliance mechanisms. (AI Summary)