Cess on cvd

CA Ganesh Karthik (Chartered Accountant) (368 Points)

08 May 2012  

Dear Members,

As per the recent budget amendment, there is no Education Cess or Secondary and Higher Education Cess applicable on CVD.

My doubt is, in case Basic Customs Duty is Nil, but CVD is applicable (i.e. 12%), whether education cess has to be charged on the total duty (i.e. on BCD + CVD)? 

Let me explain my doubt with example:

Assessable Value : 100

BCD : NIL

CVD : 12% (No Cess Included)

Cess (on BCD + CVD), i.e. on (0+12) - whether this cess is applicable?