Krishi Kalyan Cess (KKC)
- In Finance Bill, 2016, a new Cess in the name of Krishi Kalyan Cess (“KKC”) was proposed for the purpose of financing and promoting initiatives to improve agriculture and farmers welfare.
- KKC shall be levied and collected in accordance with the provisions of Chapter VI of the Finance Act, 2016 as Service Tax on all the taxable services at the rate of 0.5% on the value of such services. The effective rate of Service Tax will become 15% (14% Service Tax + 0.5% Swachh Bharat Cess + 0.5% Krishi Kalyan Cess )
- Unlike the SBC (Swachh Bharat Cess), Input Tax Credit will be available for the payment of this cess.
- KKC shall be levied and collected by the Central Government under separate accounting head/code.
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