POT rule on ddebtors

[Asked by Guest]

Dear Sir,

If in my books Debtors of ₹ 100000/- is stood i.e. Service provided and invoice raised before 31st May 2016 but payment not received then whether Krishi Kalyan cess would be paid? However i had already paid service tax on 1 lacs before 31st May 2016.

[MADAN RAHEJA]

Dear Sir, Krishi Kalyan Cess will not apply to service rendered prior to 1st June as it is a case of new levy which is effective from 1st June and Point of Taxation Rules are not applicable as it is not a case of change in rate of service tax.

[Ganeshan Kalyani]

Sir, KKC is applicable in your case. Payment of service tax is not a criteria but payment of service of service amount does. Thanks.

[KASTURI SETHI]

I agree with Sh.Ganeshan Kalyani, Sir.

[MADAN RAHEJA]

I stand corrected. Thanks Sh. Kalyani and Sh. Sethi

[VAMSI KRISHNA]

SIR, I Agree With MADAN RAHEJA

AI Summary

Krishi Kalyan Cess applicability depends on receipt of service payment; levy applies when consideration is collected after commencement.
Applicability of Krishi Kalyan Cess turns on the levy's commencement and receipt of service consideration. As a new levy, the Point of Taxation Rules for rate changes do not determine applicability. If service consideration is received after the levy's commencement, the levy applies even when the service was performed and invoiced earlier and even if service tax was paid before commencement.