KKC is applicable on GTA under Reverse Charge

[deepak kalambate]

Dear Sir,

We are receipent of Service. Please let us know whether KKC is applicable on GTA to be paid on 5th of June2016 (payment for the month of May2016) under reverse charge?

Regards

AI Summary

Krishi Kalyan Cess Not Applicable to GTA Services if Provided and Invoiced Before May 31, 2016, Despite Payment Delay. A query was raised regarding the applicability of Krishi Kalyan Cess (KKC) on Goods Transport Agency (GTA) services under the reverse charge mechanism for payments made in June 2016 for services received in May 2016. Three responses were provided. The consensus was that KKC is not applicable if the service was provided, the invoice was raised, and payment was made before the implementation of the levy. Additionally, an amendment to Rule 7 of the Point of Taxation Rules was mentioned, clarifying that if service and invoicing occurred before May 31, 2016, KKC would not apply even if payment was delayed.