Cess on central excise

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2012 Dear Friends, whether 3% cess is applicable on excise & service tax or it has been withdrawn in this budget, eg. earlier we were charged excise @ 10.3% on products & now when same has been increased from 10% to 12%, then what will be total percentage of charge excise or service tax.

Secondly, also confirm the applicability date of increase rate of service tax, whether it will be charged with increased amount from the budget day or from 1st April, 2012. Thanks in advance

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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26 March 2012 Dear Friend,

There is no change in percentage of education cess in the budget in both direct as well as indirect taxes.
It is 3% on the rate of duty/tax as specified.
So it will be 12.36% for service tax and excise.
Further, ST rate is applicable from 01/04/2012 and excise rate is w.e.f 17/03/2012 i.e very next day of the budget.