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<h1>Service Tax Rules Amended: New Options for Calculating Krishi Kalyan Cess Introduced, Effective June 1, 2016, Rule 6 Updated.</h1> The Service Tax (Third Amendment) Rules, 2016, effective from June 1, 2016, amend the Service Tax Rules, 1994. The amendments include changes in rule 6, sub-rule (7D), replacing the figures '0.5' with the 'effective rate of Swachh Bharat Cess' and modifying the service tax rate reference. A new sub-rule (7E) is introduced, allowing taxpayers the option to calculate and pay the Krishi Kalyan Cess based on a formula involving the effective rate and service tax liability, instead of the fixed rate specified in the Finance Act, 2016. This option, once chosen, must be applied consistently throughout the financial year.