Higher and secondary education cess

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2016 Dear Expert,

Please do let me know about utilisation of Education cess credit which is there in accounts till 31.05.2015 and then 14% rate was applicable so now how to utilise and if not able to utilise than what would be the accounting treatment?

Thanks in advance.

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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15 April 2016 The balance in E. Cess & SHE Cess should be transferred to Service Tax by reflecting the same in Part - I of the ST - 3 Return. In E. Cess & SHE Cess fill up item 3.2.3.4.& 3.3.3.4 as transferred to Service Tax and in Service Tax fill up item 3.1.2.6. as Transferred from EC & SHEC.

In the books of account transfer the entries by means of a normal journal entry.