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TMI BlogKKC in invoice of 31/5/16X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ? - Reply By Ganeshan Kalyani - The Reply = Ide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally they should not. They should raise supplementary invoice instead. Thanks. - Reply By KASTURI SETHI - The Reply = I agree with Sh.Ganeshan Kalyani, Sir. KKC cannot be charged in the invoice issued on 31.5.2016, especially, in view of the fact that KKC is leviable from 1.6.. 2016. - Reply By Rajagopalan Ranganathan - The Reply = Sir, If KKC is charged in the invoice dated 31.5.2016 it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is without authority of law. Suppose you make payment of amount shown in the invoice on 31.5.2016 itself then you can refuse to pay KKC. However if the payment in respect of the invoice dated 31.5.2016 is made on or after 1.6.2016, then your service provider has to raise a supplementary invoice charging KKC on you in view of the provisions of rule 5 of Point of Taxation Rules, 2011 no tax sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be payable to the extent the invoice has been issued and the payment received against such invoice before such service became taxable . As per Explanation 1 apended to this rule the same rule shall apply mutatis mutandis in case of new levy on services. Since in your case payment in respect of the invoice issued on 31.5.2016 is made on or after 1.6.2016 your service provider has to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay KKC since payment of the invoice has been received on or after 1.6.2016. This payment of KKC can be passed on to you through a supplementary invoice. At the same time if you are an output service provider you can avail the credit of such KKC and utilise it for payment of KKC on your output service. - Reply By bhart b sharma - The Reply = the raising of invoice is of no avail as the amount pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable on account of provision of service is being remitted at a later date, i.e., after the date when the new Cess becomes payable. therefore, the payment of Cess will be the date for accountal of settlement of tax arrears, if any. In case payment is received after 1st June when the new CEss is levied; the assessee would have no option. as the assessee knows in advance that the money is not yet a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrived in his account and would be coming after 1.6.2016, therefore no chances to be taken. Charging of new Cess leviable w.e.f a later date which incidentally falls just the next day, is of no penal consequence. But non-payment of KK Cess by due date would be a risky venture for the assessee. therefore, as a matter of caution also, it would be advisable to charge cess in bill. this is no offence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as payment has to arrive after the due date of levy of new Cess. - Reply By CS SANJAY MALHOTRA - The Reply = Nicely explained by all experts, purely is a case of Tax charged without authority of law. Collection of same has to be on supplementary Invoice from the date of new levy i.e. June 01, 2016 onwards... - Reply By Ganeshan Kalyani - The Reply = Sir the topic is very interesting for exper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts but a challenge for a querist. In the corporate office of a company there is separate team who does accounting of punching invoice. They raise a query to a tax expert. It becomes challenging to explain the law especially those applicable in transition time. They doubt expert or the law. - Reply By Sanjay Aggarwal - The Reply = agreed, Sir - Reply By KASTURI SETHI - The Reply = NOTIFICATI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ON No. 35/2016-Service Tax New Delhi, the 23rd June, 2016 G.S.R. ---(E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) , read with sub-section (5) of section 161 of the Finance Act, 2016 (28 of 2016) , the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es with respect to which the invoice for the service has been issued on or before the 31st May, 2016, from the whole of Krishi Kalyan Cess leviable thereon, subject to condition that the provision of service has been completed on or before the 31st May, 2016. [F.No. B-1/21/2016 - TRU] (Mohit Tiwari) Under Secretar - KKC in invoice of 31/5/16 - Query Started By: - Sanjay Aggarwal Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10-6-2016 Service Tax - Got 8 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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