Krishi Kalyan Cess and Service Tax on Transportation
No. CLE-HO/POL/CIRCULAR/15-16
June 28, 2016
Members of the Council
Sub : Levy of 0.5% Krishi Kalyan Cess w.e.f.1st June 2016 and Service Tax on transportation of goods by a vessel from outside India upto Customs Station in India
Dear Member
Kindly refer to Council’s circular dated May 30, 2016 informing about levy 0.5% Krishi Kalyan Cess on taxable services w.e.f. 1st June 2016.
· The Central Board of Excise and Customs, Department of Revenue has now issued a Service Tax Notification No. 35/2016 dated 23rd June 2016 which states the following.
The Central Government 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.
· Besides, the CBEC has also issued Service Tax Notification No. 36/2016 dated 23rd June 2016 which states the following.
The Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services by way of transportation of goods by a vessel from outside India upto the customs station in India with respect to which the invoice for the service has been issued on or before the 31st May, 2016, from the whole of service tax leviable thereon, subject to the condition that the import manifest or import report required to be delivered under section 30 of the the Customs Act, 1962 (52 of 1962) has been delivered on or before the 31st May, 2016 and the service provider or recipient produces Customs certified copy of such import manifest or import report.
Members may kindly note the above.
Thanks and regards
R. Ramesh Kumar
Executive Director