Service Tax Reaches 15% With The Levy Of 0.5% Krishi Kalyan Cess


Effective 1 June 2016, Service Tax of 15% will be levied on all insurance premiums.

Budget 2016 has proposed to impose the Krishi Kalyan Cess @ 0.5% on all taxable services.  The proceeds of Krishi Kalyan Cess would be exclusively used for financing initiatives related to improvement of agriculture and welfare of farmers.

All premiums due before 01/06/206 will be payable as per the existing rate of 14.5% but if due premium payment is delayed then the new rate of 15% will be charged in addition to the penalties chargeable.

Renewed renewal notices will be issued for all those policy holders whose premiums are due on & from 01/06/2016.

 

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s