The Kisan Kalyan Cess (KKC) is a cess that will be charged as an addition to the service tax. The cess is at 0.5%. When this is added, the total service tax rate will be around 15%. The cess amount collected by the government is meant for specific purposes. So also, the KKC is meant to be used for improving the agricultural sector and for farmer welfare.
The idea behind the KKC is to charge a cess on a sector that is doing well so that the money thus collected can be used to de-stress a sector that was in trouble. The money from this cess is towards relieving farm distress. The services sector in India is doing well and it now contributes about thrice that of agriculture towards the GDP. A further growth in the services sector is expected to push the money gathered as KKC up, and this can be used for the betterment of the agriculture sector.