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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