Union Finance Minister Arun Jaitley is hoping to mop up around Rs.5,000 crore under the new with his new Krishi Kalyan Cess at 0.5 percent on all taxable services during 2016-17.
According to the budget papers, the government has budgeted Rs.5,000 crore under Krishi Kalyan Cess and Rs.10,000 crore under the Swachh Bharat Cess.
The Krishi Kalyan Cess that will come into force from June 1, 2016 will be exclusively used for financing initiatives relating to improvement of agriculture and welfare of farmers.
The total service tax collection for 2016-17 is pegged at a whopping Rs.231,000 crore as against a revised estimate of Rs.210,000 crore for 2015-16.
