Levy of Krishi Kalyan Cess

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....Chapter-VI of the Finance Act, 2016 is reproduced below:- "CHAPTER VI KRISHI KALYAN CESS 161. (1) This Chapter shall come into force on the 1st day of June, 2016. (2) There shall be levied and collected in accordance with the provisions of this Chapter, a cess to be called the Krishi Kalyan Cess, as service tax on allor any of the taxable services at the rate of 0.5 per cent. on the value of suchservices for the purposes of financing and promoting initiatives to improve agriculture or for any other purpose relating thereto. (3) The Krishi Kalyan Cess leviable under sub-section (2) shall be in addition to any cess or service tax leviable on such taxable services under Chapter V of the Finance Act, 1994, or un....

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....al order issued under sub-section (1) or as the case may be under sub-section (2) of section 93 ofthe Finance Act, 1994 or otherwise not leviable to service tax under section 66B of the Finance Act, 1994: Provided that Krishi Kalyan Cess shall be leviable only on that percentage of taxable value which is specified in column (3) for the specified taxable services in column (2) of the Table in the notification No.26/2012-Service Tax, dated 20th June, 2012, published in the Gazette of India, Extraordinary, Part Il, Section 3, sub-section (i) vide number G.S.R. 468 (E), dated the 20th June, 2012. The CBEC vide the said Notification has also clarified that value of taxable services for the purposes of the Krishi Kalyan Cess shall be the va....

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....credit in respect of Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016) shall be utilised only towards payment of Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016) For details, the said Notification No.28/2016-Central Excise (N.T.) dated26.05.2016 may be referred to. 6. Payment of Krishi Kalyan Cess under reverse charge mechanism: The CBEC vide Notification No.27/2016-Service Tax dated 26.05.2016, has notified that w.e.f.01.6.2016, wherever reverse charge mechanism is applicable in terms of Notification No.30/2012-ST dated 20.06.2012, the same (reverse charge) shall be applicable mutatis mutandis for the purpose of Krishi Kalyan ....