Dear Sir,
A service provider has raised the invoice on 31.05.2016 for service performed by them and they are charging the KKC in the invoice dated 31.05.2016. and the fact is that the payment will be made to them in june 2016.
now my question is, eventhough payment will be made to them in june 2016, CAN THEY CHARGE KKC ON INVOICE DATED 31.05.2016 ?
Service Provider Incorrectly Charges Krishi Kalyan Cess Before Effectivity Date; Must Follow Point of Taxation Rules 2011 A service provider issued an invoice dated 31.05.2016, including Krishi Kalyan Cess (KKC), even though the payment was to be made in June 2016. Experts in the discussion agreed that KKC should not be charged on this invoice since it was issued before KKC became effective on 01.06.2016. Instead, a supplementary invoice should be raised after the payment date to reflect the KKC. The consensus was that charging KKC without legal authority is incorrect, and the service provider should comply with the Point of Taxation Rules, 2011, to avoid penalties. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
