Notification on Krishi Kalyan Cess

Notification of Accounting Code for payment of ‘Krishi Kalyan Cess’

As the Finance Bill, 2016 proposed to levy ‘Krishi Kalyan Cess’ @ 0.5% with effect from 01 June 2016 on all taxable services except services which are fully exempt from Service Tax or services which are otherwise not liable to Service Tax under section 66B of the Finance Act, 1994.
Now, the Government of India vide its Circular No. 194/04/2016-ST dated 26 May 2016 notified the accounting codes for the payment of ‘Krishi Kalyan Cess; which can be mentioned as under:
 Krishi Kalyan (Minor Head):- 0044-00-507
 Tax Collection:- 00441509
 Other Receipts:- 00441510
 Deduct Refund:- 00441511
 Penalties:- 00441512

Further, it is pertinent to mention that credit of ‘Krishi Kalyan Cess’ paid on input services shall be allowed and be utilized only for the payment of such Cess on the output services provided by the ‘Service Provider’. However, credit of ‘Krishi Kalyan Cess’ will not be available to the ‘Manufacturers’.