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.