KRISHI KALYAN CESS:
It is levied at 0.5% on taxable value of services with effect from 1.06.2016.
- Unlike Swatch Bharat cess, the input (CENVAT) credit received on purchase of services will be available for payment of such cess on output services.
- The credit can only be utilised for payment of Krishi Kalyan cess. So separate account need to be made for this levy in books.
Manufacturer is not entitled to avail the credit on KKC except for the purpose of discharging the KKC payable on the output service where he is also registered as a service provider.
SWATCH BHARATH CESS :
- This Cess (SBC) is applicable only on taxable services with effect from 15.11.2015 at rate of 0.5%
- SBC shall not be available as cenvat credit and liability of same cannot be discharged by utilising cenvat credit.