Do you know that one more tax, Krishi Kalyan Cess has been imposed on our everyday life expenses starting from 1st June 2016. Honorable finance minister Mr. Arun jaitly has mentioned about the same in the Budget 2016 speech. The purpose of collecting Krishi Kalyan Cess is for the improvement of agriculture and welfare of farmers in India.
Now onward an extra 0.5% extra Krishi Kalyan Cess is going to increase many of your expenditure on restaurant bills, mobile phones, cinemas, visits to beauty parlours, air travel, insurance, DTH, credit and debit cards, courier, healthcare, banking and professional consultancies costlier.
What is Krishi Kalyan Cess or KKC
So far this tax is applied for this financial year only. Govt is planning to collect around Rs 5,000 crore during the remaining 10 months of the current fiscal. This new tax will be applied on wherever service tax is applied. This is similar to Swachh Bharat Cess only.
Right now the current service tax has been raised from 12.36 % to 15% considering all the latest inclusions and now with the inclusion of this KKC or Krishi Kalyan Cess, your all expenses are going to get increased. Although this tax will not apply on your income, rather than in all your expenses.
How much Service Tax Need To Pay From June 1st 2016?
I am just sharing the message I have received from my insurance provider about the intimation of KKC from June 1st 2016.
Almost every single service we are availing in our life like restaurant bill payment, rent payment, mobile phone bill, cinema ticket, visits to beauty parlours, air travel, insurance premium, DTH connection recharge, credit and debit card bill payment, courier, healthcare, banking, under construction property, digital advertising, Air travel agents and professional consultancies and many more.
So, get ready to pay more tax while availing any services in your everyday life with the introduction of Krishi Kalyan Cess. Share your feedback or any though about this by writing a comment below.