Kerala Flood Cess is levied to raise the fund which is required for re-construction of the State after the devastating flood which occurred in the State during August 2018.
Kerala Flood Cess is applicable from August 01, 2019 onwards as per the Notification No. S.R.O. 436/2019 dated June 29th, 2019 for a period of two years.
Kerala Flood Cess is levied under Section 14 of Kerala Finance Act, 2019. The Kerala Flood Cess Rules are published vide Notification No. S.R.O. No. 359/ 2019 published as G.O.(P) No.80/2019/TD dated May 25, 2019.
Yes, the levy of Kerala Flood Cess is duly approved and sanctioned in the 32nd meeting of GST council.
Kerala Flood Cess is applicable on the taxable value of services.
It will be levied @ 1% on the taxable value of services.
Yes, this is applicable in addition to Goods and Services Tax Act.
Kerala Flood Cess will be in force for a period of two years from the date of its commencement.
Kerala Flood Cess shall be levied on intrastate supplies of services made by the Company to those policyholders who are residing in Kerala and are not registered under GST.

 

Example: If the policy is logged in any branch of Kerala and if the policyholder’s (not registered under GST) address as per Company’s records is also of Kerala, then Kerala Flood Cess is applicable.

 

Example: If the policy is logged in any branch of Kerala but the policyholder’s (not registered under GST) address as updated in the Company’s records pertains to Chennai, then Kerala Flood Cess is not applicable.

 

Example: If the policy is logged in any branch of Kerala and the policyholder’s (not registered under GST) address in Company’s records is of Kerala, however the policyholder is working in Mumbai, Kerala Flood Cess will still be applicable.

 

Intrastate supply means the supply of services within the same state itself, i.e. From Kerala to Kerala.
This levy is applicable only where the supply is made by a taxable person to an unregistered person. Hence, if a policyholder is duly registered under GST, then Kerala Flood Cess is not applicable.
This is applicable to all the premiums that become due and payable with effect from August 01, 2019 irrespective of the fact that it is first year’s premium or renewal premium.
In such a scenario, the premium amount paid by the policyholder shall be kept in the policy suspense account .It shall not be applied to the policy till the time full premium amount along with the Kerala Flood Cess is received by the Company in totality.
Yes, it is applicable on all products irrespective of the nature of the product.
Yes, the policyholder is required to make due payment towards Kerala Flood Cess under the policy. In the absence of which, the premium paid will not be applied to the policy and will be kept in the policy suspense account.
The levy and collection of KFC has now been discontinued by the Government with effect from August 01, 2021 vide its press release dated July 23, 2021. As a result of which, KFC will not be collected on policies issued or renewed on or after August 01, 2021. All other taxes and levies shall continue to remain applicable.
Tax laws are subject to amendments made thereto from time to time.
COMP/DOC/Jun/2019/206/2425

People like you also read ...

Back to Top