Tax on purchasing above Rs 2 lakhs- Krishi Kalyan cess levied

Tax on purchasing above Rs 2 lakhsIf we buy goods worth Rs 2 lakhs and above at a stretch, we may invite tax of 1%, according to latest tax proposals.

The government has also announced a Krishi Kalyan Cess of 0.5 per cent on all taxable services effective from June 1 this year to fund farm initiatives. It also proposed cut in excise duty on irrigation pumps and soil nutrients besides slashing import duty on cold storage related equipments. –

“Input tax credit of this cess will be available for payment of this cess,” he added.

Jaitley also proposed to amend section 35AD of the Income-tax Act so as to reduce the deduction from 150 per cent to 100 per cent in the case of a cold chain facility, warehousing facility for storage of agricultural produce, production of fertiliser among others effective from April 1.

Medaram Jathara

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