Worry not! Krishi Kalyan Cess will have you shell out only Rs 5 more per Rs 1,000 spent
The Krishi Kalyan Cess that was announced in the Budget speech earlier this year, comes into force from June 1.
The Krishi Kalyan Cess announced by Finance Minister Arun Jaitley in his second budgetary statement, will come into force from June 1 (Wednesday).
While the cess is applicable on every taxable item, at the rate of 0.5%, you will be paying an additional; 50 paise per Rs 100 or Rs 5 per Rs 1,000 spent on any taxable item.
The cess will be levied on al taxable items, which will include your restaurant bills, mobile phone bills, rail and air travel, movies, spa, funds transfer via banks, and so on.
The proceeds collected from the levy of the 0.5% cess will go towards improving agriculture and for the welfare of farmers, Jaitley had said in his budgetary speech.
"I propose to impose a cess called Krishi Kalyan Cess at 0.5 per cent on all taxable services, the proceeds of which would be exclusively used for financing initiatives relating to improvement of agriculture and welfare of farmers," Jaitley said in his speech on February 29.
Through the Krishi Kalyan Cess, the government hopes to rake up Rs 5,000 crore.