Which of the following statements about Krishi Kalyan Cess (KKC) is/are correct ?
- 1. KKC is calculated in the same way as Service Tax is calculated.
- 2. The current rate of KKC is 0.50%.
- 3. KKC is similar to the KKS (Krishi Kalyan Surcharge).
Select the correct answer using the code given below :
1, 2 and 3
1 and 2 only
2 and 3 only
1 only
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC NDA-2 – 2016
Statement 2 is correct: The rate of KKC was 0.50%.
Statement 3 is incorrect: KKC was a cess on Service Tax, specifically introduced to finance initiatives relating to improvement of agriculture and welfare of farmers. KKS (Krishi Kalyan Surcharge) was a surcharge on income tax levied on certain taxpayers in specific budget years for similar objectives. They were different types of levies applied to different tax bases. KKC was subsumed under the Goods and Services Tax (GST) which came into effect from July 1, 2017.