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cess on export duty

Sourav Modi (Learner!) (306 Points)

22 January 2009

here is one very basic query. Is education cess and SHEC charged on export duty? or if there is any specific provision in regard of it, please tell.

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4 Replies

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 22 January 2009

Education cess is chargeable, whenever Custom duty is chargeable. Export duty is a custom duty; hence education cess is chargeable on this.

However, education cess is not chargeable on some cess which is imposed on export of certain goods like minerals etc. The fundamental question is to be decided is the nature of duty payable on export- if it is a custom duty, education cess is payable.

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Sourav Modi (Learner!) (306 Points)
Replied 23 January 2009

means in case of goods like minerals etc, it is charged as excise duty rather than custom duty.

by the way, thanks for the reply. it couldnt have been more satisfactory.

Sourav

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 23 January 2009

No saurav, education cess is also payable on excise duty and service tax. If the cess leviable is Central Excise duty or service tax, cess is payable.

However various cess has been levied- like some cess on minerals, or raw leather or some textile cesses- which are not in the nature of custom duty or Central excise duty or services tax- then education cess is not payable.