Central Government has vide Notification No.35/2016-Service Tax dated 23.06.2016, has exempted taxable services from levy of Krishi Kalyan Cess (“KKC”) in cases which satisfies the following two conditions:
– Where invoices have been raised prior to 01.06.2016; and
– Where provision of service has been completed prior to 01.6.2016.
Accordingly, the concern of the industry that KKC shall be levied on the opening debtors i.e. remaining unpaid as on 31.03.2016 has been duly answered and no KKC shall be levied on such amounts.
Thus even for recruitment advisory services where candidate has joined before 1st June\’16 and invoice has also been raised before the said date, Krishi Kalyan Cess will not be applicable
Official Notification