Krishi Kalyan cess from Wednesday; here’s what it will impact

The new tax for rural infrastructure will be levied on all taxable services in addition to the Swachh Bharat cess of 0.5% and the existing service tax of 14%


Among others, banking services like demand drafts, lockers, issuance of new cheque books, ATM charges will become more expensive. Photo: Mint
Among others, banking services like demand drafts, lockers, issuance of new cheque books, ATM charges will become more expensive. Photo: Mint

The Krishi Kalyan cess of 0.5% was announced in this year’s budget by finance minister Arun Jaitley to build rural infrastructure in India. 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%.

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

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