Levy of Krishi Kalyan Cess at the rate of 0.5 per cent on service tax

HEPC/Accounts/2016-17

May 31, 2016

All Member Exporters

Sir/Madam,

Sub: Levy of Krishi Kalyan Cess at the rate of 0.5 per cent on service tax-reg.

Council would like to bring to the kind attention of all Member Exporters that as per Chapter VI of THE FINANCE ACT, 2016 notified in The Gazette of India dated May 14, 2016 a cess to be called the Krishi Kalyan Cess, shall be levied and collected in accordance with the provisions of this Chapter as service tax on all or any of the taxable services at the rate of 0.5 per cent on the value of such services for the purposes of financing and promoting initiatives to improve agriculture or for any other purpose relating thereto. 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 under any other law for the time being in force w.e.f 01/06/2016.

We therefore request member exporters to remit service tax @15.0% along with payment wherever applicable henceforth.

Yours sincerely,

R.Anand,
Executive Director