Krishi Kalyan Cess(KKC), which was proposed by Finance Minister of India during his budget presentation for 2015-16, is planned to be implemented from 1st June 2016.
KKC is a new tax levied along with service tax and Swachh Bharat Cess(SBC) @0.5% of taxable value of services. Proceeds of the new tax will be exclusively used for financing initiatives relating to improvement of agriculture and welfare of farmers in India.
Input Tax credit on KKC will be available for payment of KKC.
Following is the relevant patch information:
Post / top up mandatory patches:
2.Issue: KKC Tax Column & Amount Not Appearing In India - Service Tax Pending Recovery Report => Patch.23508138:R12.JAI.C
(Ref: KKC: Krishi Kalyan Cess Tax Column & Amount Not Appearing In India - Service Tax Pending Recovery Report (Doc ID 2150276.1)
3.Issue: KKC : REVERSE CHARGE FLAG IS DISABLED IN TAX DEFINITION FORM => Patch.23483668:R12.JAI.C
(Ref: KKC: Krishi Kalyan Cess Reverse Charge Flag Is Disabled In Tax Definition Form (Doc ID 2144289.1)