CoolInterview.com - World's Largest Collection of Interview Questions & Answers, FAQs, queries, sample papers, exam papers, dumps, what, why, how, where, when questions
Our Services
Get 9,000 Interview Questions & Answers in an eBook.




Get it now !!
Send your Resume to 6000 Companies
Krishi Kalyan Cess Interview Questions & Answers - Learning Mode
COOLINTERVIEW.COM TAX INTERVIEW QUESTIONS KRISHI KALYAN CESS INTERVIEW QUESTIONS QUESTIONS & ANSWERS - LEARNING MODE

Krishi Kalyan Cess Interview Questions & Answers - Learning Mode

In budget 2016 finance minister has introduced new tax namely Krishi Kalyan Cess. This cess is introduced in order to extend welfare to the farmers. The effective rate of Krishi Kalyan Cess is 0.5%. This tax will be imposed on all taxable services. Krishi Kalyan Cess would come in force with effect from June, 1, 2016. Once this cess is applied we need to pay service tax @ 15%. It is a Cess which shall be levied and collected in accordance with the provision of Chapter VI of the Finance Act, 2015 called Krishi kalyan Cess, as Service Tax on all Taxable Services at the rate of 0.5% of the value of Taxable Services.

Try Krishi Kalyan Cess Interview Questions & Answers - Exam Mode

1

Sort By : Latest First | Oldest First | By Rating

Krishi Kalyan Cess Interview Questions & Answers - Learning Mode
Try Krishi Kalyan Cess Interview Questions & Answers - Exam Mode
Question: Whether Krishi kalyan Cess needs to be collected against same service tax code challan or a separate code is needed?

Answer: KKC would be levied, charged, collected and paid to government independent of service tax. This needs to be charged separately on the invoice, needs to be accounted separately in the books of account and needs to be paid separately under separate accounting code as notified separately.

Yes. For payment of KKC , a separate accounting code would be notified for the challans. Source: CoolInterview.com
Question: Is Krishi Kalyan Cess (KKC) similar to the Krishi Kalyan Surcharge?

Answer: No, Krishi Kalyan Cess is different from the Krishi Kalyan Surcharge which is announced by the Government in the same Union Budget, 2016-17. In order to provide a stable and predictable taxation regime and reduce black money, it was announced in the budget that domestic tax payers can declare undisclosed income or such income represented in the form of any asset by paying tax at 30%, and surcharge (means an addition to the existing tax) at 7.5% and penalty at 7.5%, which is a total of 45% of the Source: CoolInterview.com
Question: Where can I find legal provisions for Krishi Kalyan Cess (KKC)?

Answer: Krishi Kalyan Cess (KKC) was announced in the Union Budget, 2016-17. A legal provision was made through the Finance Bill, 2016 (Chapter VI, clause 158) for levying the Cess.

In fact, Finance Bill defines KKC as a service tax on all or any of the taxable services at the rate of 0.5 percent on the value of such services for the purposes of financing and promoting initiatives to improve agriculture or for any other purpose relating thereto.

The legal provisions related to service tax Source: CoolInterview.com
Question: How Krishi kalyan Cess (KKC) will be calculated?

Answer: Krishi Kalyan Cess would be calculated in the same way as Service tax is calculated. Therefore, KKC would be levied on the same taxable value as service tax. KKC is not to be calculated on Service Tax but on the taxable value of the service provided.

Example of Krishi Kalyan Cess calculation ?
For a service worth Rs. 100, Service Tax will be Rs. 14 at 14% rate and Swachh Bharat Cess (SBC) will be Rs. 0.50 at 0.5%. Similarly, Krishi Kalyan Cess will be Rs. 0.50 at 0.5%.

So the to Source: CoolInterview.com
Question: In case of services covered by Abatement, what would be effective rate of Krishi Kalyan Cess(KKC) tax?

Answer: Taxable Services, on which service tax is leviable on a certain percentage of value of taxable service, will attract KKC on the same percentage of value as provided in the Notification No.26/2012-Service Tax dated 20th June, 2012. So, this notification would apply for KKC also in the same manner as it applies for Service Tax.

For instance in case of GTA Service, it would be 15%*30%= 4.50%. Source: CoolInterview.com
Question: How does Krishi Kalyan Cess (KKC) apply on "Works Contract Service"?

Answer: The value of services would be calculated as per Rule 2A of Service Tax (Determination of Value) Rules, 2006. Tax needs to be applied on the value so arrived at the rate of 15%. Effective rate of tax in case of original works and other than original works would be 6% (15%*40%) and 10.5% (15%*70%) respectively. Source: CoolInterview.com
Question: Is Krishi Kalyan Cess (KKC) applicable on all taxable services?

Answer: Yes. Krishi Kalyan Cess (KKC) would be applicable on all taxable services. Hence, KKC is payable along with service tax on the services availed and covered under reverse charge mechanism. Source: CoolInterview.com
Question: What is the meaning of Krishi Kalyan Cess (KKC)?

Answer: It is a Cess which shall be levied and collected in accordance with the provision of Chapter VI of the Finance Act, 2015 called Krishi kalyan Cess, as Service Tax on all Taxable Services at the rate of 0.5% of the value of Taxable Services.

The Union Budget, 2016 proposed in Finance Bill, 2016 to impose a new Cess, called the Krishi Kalyan Cess, @ 0.5% on all or any taxable services, proceeds of which would be exclusively used for financing initiatives relating to improvement of agricultu Source: CoolInterview.com
Question: What would be the point of taxation for Krishi Kalyan Cess (KKC)?

Answer: Point of taxation means the point when a service shall be deemed to have been provided. KKC Shall be covered under Rule 5 of Point of taxation Rules 2011 (Hereinafter referred to as ?POTR 2011?). It reads as follows:

Payment of tax in case of new services- Where a service is taxed for the first time, then,-

(a) no tax shall be levied to the extent the invoice has been issued and the payment received against such invoice before the service became taxable.

(b) No tax shall be Source: CoolInterview.com
Question: From Which Date Krishi Kalyan Cess(KKC) is applicable?

Answer: KKC is applicable from 1st June, 2016.
Krishi kalyan Cess is not applicable on Services mentioned in ?Negative List? and ?Mega Exemption List?. As per the Notification No. 22/2015,t KKC would not be applicable on services exempted from levy of service tax.

Rule 5 of Point of Taxation Rules? 2011 need to be referred for its applicability in case of ongoing contracts on 01.06.2016. Thus, if payment is made before 01.06.2016 then this cess is not applicable. Source: CoolInterview.com
Question: Whether Krishi kalyan Cess (KKC) would be required to be mentioned separately in invoice?

Answer: Krishi kalyan Cess (KKC) would be levied, charged, collected and paid to Government independent of Service Tax. This needs to be charged separately on the invoice, accounted for separately in the books of accounts and paid separately under separate accounting code. Swatch Bharat Cess may be charged separately after Service tax as a different line item in Invoice. Source: CoolInterview.com
Question: Whether Cenvat credit of payment of Krishi Kalyan Cess (KKC) is permissible under Cenvat Credit Rules, 2004?

Answer: Yes. The cenvat credit of KKC shall be available and shall be utilized only for the payment of KKC. Thus, separate accounts needs to be maintained. (Proper amendment in Cenvat Credit Rules? 2004 is awaited). You can also claim the refund of KKC in service tax.

Refund of this KKC shall also be allowed as the cenvat credit is there. Further, refund of this cess shall be allowed to Exporter of Service as well as Exporter of Goods as there is no restriction of its availment. Suitable amendmen Source: CoolInterview.com
Question: What would be the liability in case of Reverse Charge Services, where services have been received prior to 1.6.2016, but consideration paid post 1.6.2016?

Answer: In case of reverse charge services, point of taxation as per Rule 7 of Point of Taxation Rules, would be the date on which consideration is paid to service provider. Hence, in such case Krishi kalyan Cess would be payable. Source: CoolInterview.com
Question: How this Krishi Kalyan Cess (KKC) money will be utilized?

Answer: The proceeds of Krishi Kalyan Cess would be exclusively used for financing initiatives relating to improvement of agriculture and welfare of farmers. The proceeds of the Krishi Kalyan Cess shall first be credited to the Consolidated Fund of India and the Central Government may, after due appropriation made by Parliament by law in this behalf, utilise such sums of money of the Krishi Kalyan Cess for such specified purposes. Source: CoolInterview.com

1



India News Network
Latest 20 Questions
An offer which is open for acceptance over a period of time is: (a) Cross Offer (b) Counter Offer (c) Standing Offer (d) Implied Offer
Specific offer can be communicated to__________ (a) All the parties of contract (b) General public in universe (c) Specific person (d) None of the above
_________ amounts to rejection of the original offer. (a) Cross offer (b) Special offer (c) Standing offer (d) Counter offer
A advertises to sell his old car by advertising in a newspaper. This offer is caleed: (a) General Offer (b) Special Offer (c) Continuing Offer (d) None of the above
In case a counter offer is made, the original offer stands: (a) Rejected (b) Accepted automatically (c) Accepted subject to certain modifications and variations (d) None of the above
In case of unenforceable contract having some technical defect, parties (a) Can sue upon it (b) Cannot sue upon it (c) Should consider it to be illegal (d) None of the above
If entire specified goods is perished before entering into contract of sale, the contract is (a) Valid (b) Void (c) Voidable (d) Cancelled
______________ contracts are also caled contracts with executed consideration. (a) Unilateral (b) Completed (c) Bilateral (d) Executory
A offers B to supply books @ Rs 100 each but B accepts the same with condition of 10% discount. This is a case of (a) Counter Offer (b) Cross Offer (c) Specific Offer (d) General Offer
_____________ is a game of chance. (a) Conditional Contract (b) Contingent Contract (c) Wagering Contract (d) Quasi Contract
There is no binding contract in case of _______ as one's offer cannot be constructed as acceptance (a) Cross Offer (b) Standing Offer (c) Counter Offer (d) Special Offer
An offer is made with an intention to have negotiation from other party. This type of offer is: (a) Invitation to offer (b) Valid offer (c) Voidable (d) None of the above
When an offer is made to the world at large, it is ____________ offer. (a) Counter (b) Special (c) General (d) None of the above
Implied contract even if not in writing or express words is perfectly _______________ if all the conditions are satisfied:- (a) Void (b) Voidable (c) Valid (d) Illegal
A specific offer can be accepted by ___________. (a) Any person (b) Any friend to offeror (c) The person to whom it is made (d) Any friend of offeree
An agreement toput a fire on a person's car is a ______: (a) Legal (b) Voidable (c) Valid (d) Illegal
"Holiday Packages" announced as an advertisement are an example of _________: (a) Offer (b) Counter Offer (c) Invitation to Offer (d) None of the above
A match fixing contract between a player and a broker is a: (a) Valid Contract (b) Unenforceable Contract (c) Void Contract (d) Illegal Contract
When a bookseller sells a book on cash payment then it is called as ___________: (a) Unilateral Contract (b) Bilateral Contract (c) Executed Contract (d) Executory Contract
____________ agreements are created by situation: (a) Written (b) Oral (c) Void (d) Implied
Cache = 0.110352 Seconds