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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 ..... KKC in invoice of 31/5/16 X X X X Extracts X X X X X X X X Extracts X X X X ..... 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: Ideally 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 shall 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 lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 pay 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 ut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilise 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 payable 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 recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved 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 arrived 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of new levy i.e. June 01, 2016 onwards... Reply By Ganeshan Kalyani: The Reply: Sir the topic is very interesting for experts 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... doubt expert or the law. Reply By Sanjay Aggarwal: The Reply: agreed, Sir Reply By KASTURI SETHI: The Reply: NOTIFICATION 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services 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] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Mohit Tiwari)
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