The Central Government has issued a host of notifications for the purpose of implementing KKC. The notifications, inter-alia prescribe as follows:
- KKC will be levied on the value of taxable services @ 0.5%. Effective rate of service tax enhanced from 14.5 % to 15 %.
- KKC will be exempted only to those services which are fully exempted under Finance Act, 1994. In respect to those taxable services where abatement is specified, KKC will be proportionately levied.
- KKC will be exempt by way of refund or rebate under the relevant service tax notification on (i) services exported out of India or (ii) services provided to a unit in a Special Economic Zone (SEZ).
- Provisions of reverse charge shall be applicable mutatis mutandis to KKC as well.
[Ref: Notification No. 27-31/2016-ST all dated 26 May, 2016]
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