4 way through which Modi govt is lotting peole

lootNew Delhi: Modi government’s Krishi Kalyan cess of 0.5% came into force from June 1. It will be levied on all taxable services from 1 June in addition to the Swachh Bharat cess of 0.5% and the existing service tax of 14%, thus making it 15%.

 What is a Krishi Kalyan Cess?

It is a tax collected by the government  levied on the service tax we pay to enhance and finance the agricultural facilities. With this move the government proposes to collect Rs 5,000 crore during the remaining 10 months of the current fiscal.

The latest cess is expected to make restaurant bills, mobile phones, cinemas, visits to beauty parlours, air travel, Rail travel, insurance, DTH, Hotel bills, credit and debit cards, courier, health check ups, banking services like demand drafts, lockers, issuance of new cheque books, ATM charges and professional consultancies,Private tuition and coaching centres costlier.

 

Only those services which are under a so-called negative list will be exempt from this levy.

 Krishi Kalyan cess of 0.5 per cent on service tax will be imposed on all AC class tickets, freight and parcel.

 Objective and Particulars

 Service Tax- 14%

 Swachh Bharat Cess-0.5%

 Krishi Kalyan Cess-0.5%

 Total              15%

 As per govt., the objective of the KKC is to gather funds for improving the agricultural activities in order to lend aid to farmers eventually and  in a country where the occupation of farming is paramount. The KKC is an added cess on any service tax  leviable on taxable services under chapter V of Finance Act.

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