News
India's Finance Ministry seems to be increasing its service tax gradually. It has proposed to impose a tax called Krishi Kalyan Cess (KKC) from June.
The import freight has been removed from the Negative List and it is now taxable and the New KKC tax at 0.5% of the value of taxable services will be implemented. The Krishi kalyan Cess is not applicable on services mentioned in the list.
According to Hapag-Lloyd, with effect from June 1, 2016, ocean freight for all import shipments destined to India will be subject to a tax rate of 4.5%, comprising of the following, which will be on the abated value on 30% of the service:
-Service tax at 14%；
-Swachh Bharat Cess tax at 0.5%； and
-Krishi Kalyan Cess tax at 0.5%
