Dear Customers,

If you're a business owner offering services in India, you must have come across the new 'Krishi Kalyan Cess' which was introduced on June 1st, 2016.

The Krishi Kalyan Cess of 0.5% is to be applied to the total invoice amount which you'll charge your customers. This is in addition to the already existing Service tax (14.0%) and Swachh Bharat Tax (0.5%).The proceeds of this new cess will be used for financing initiatives relating to improvement of agriculture and welfare of farmers in India.

If you are a Zoho Books or Zoho Invoice user, now would be a good time to edit the tax settings, so the new cess reflects on all your future invoices as well.

The Tax Group option in Zoho Books and Zoho Invoice allows you to add multiple taxes together and also display the break up of each on the same invoice. If you have associated the service tax in a tax group to your recurring invoices or draft invoices, follow the below steps:

• Click on the gear icon on the top right hand corner of your Zoho Books/Zoho Invoice account. 

• Go to Taxes and click on + New Tax.

• Enter tax name and value as 0.5 and hit Save.

• Now, select the tax group that you wish to update and choose the new tax from the list that appears below.

• Click on Save.

You can also update the new cess in all the 'draft' invoices by selecting the "Draft invoices" option as shown in the image below.

Once you've applied the new tax group to your invoice, it will give a break up of taxes as shown below. The new rate will be updated in all the recurring invoices as well.

 
Hope this helps. 

If you require any further assistance, please write to us at support[at]zohobooks[dot]com or  support[at]zohoinvoice[dot]com.

Regards,

Reshma Roy

Zoho Books & Zoho Invoice Team