Krishi Kalyan Cess is applicable from 01-06-2016 @ 0.5% and thus service tax rate shall become 15%. Krishi Kalyan Cess to be applied even for outstanding amount of services rendered before 01-06-2016 for which payment is not received till 31-05-2016. E.g. for bank audit fee, if the amount is not received till 31-05-2016, Krishi Kalyan cess shall have to be paid for amount received after 31-05-2016. However, Krishi Kalyan Cess is Cenvatable. So, service providers should collect amount before 31-05-2016 to avoid payment of Krishi Kalyan Cess