Dear Friends,
When it was applicable Sr Hr Edc Cess. I want know notification and circular.
Thanx & Regards
Sathis
silky jain
(chartered accountant)
(167 Points)
Replied 01 April 2009
The Finance Act 2007 has introduced an additional
surcharge, called the "Secondary and HigherEducation
Cess", for the purposes of the Union . The rate of this
surcharge is one per cent of income-tax and surcharge
(not including the EducationCess on income-tax).
This additional surcharge is to be levied in cases
•
where tax has to be deducted at source,
•
advance tax is to be computed
•
or income-tax is to be charged in certain cases during
financial year 2007-2008.
Effective date of applicability
The budget is passed before the first instalment of
advance tax becomes due, hence there is no confusion as
to the rates. The problem happens in deducting tax at
st
source , which starts from 1 April itself.
This situation has given rise to the question as to whether
the "Secondary and HigherEducationCess", is applicable
for the Tax Deduction At source between April 1, 2007
and the presidential ascent to the Finance Act 2007.
• If you carefully go through the provision and interpret
the law it is clear that "Secondary and Higher
EducationCess" is applicable w.e.f. 1-4-2007.
• Firstly the explanatory statement to the Finance Bill
2007 is very clear that "Secondary and Higher
EducationCess" is applicable for the Financial year
2007-08, as it is evident from the notes on clauses
which says ” is to be computed or income-tax is to be
charged in certain cases during financial year 2007-
2008.”
• The Finance Bill Chapter II says that the "Secondary
and HigherEducationCess" is applicable for all rates
of taxes for the Assessement year 2008-09. Clause
12 which says: “The amount of income-tax as
specified in sub-sections (4) to (10) and as increased
by a surcharge ……… shall be also increased by an
additional surcharge for purposes of the Union, to be
called the “Secondary and HigherEducationCess on
income-tax”, calculated at the rate of one per cent of
such income-tax and surcharge”
The clauses
mentioned are the rates of taxes which are applicable
for the whole of the financial year.
• If we go back to the history we can find that when the
surcharge was introduced in 2002 Finance Bill, there
was a specific provision that the same is applicable
w.e.f. 1-6-2002. In the current case there is no
mention as to when the "Secondary and Higher
EducationCess" is applicable. When there is nothing
in the contrary the applicability shall be for the whole
financial year.
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