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Secondary and Higher Education Cess (SHE Cess) applicable from 1-3-2007By djain128, Section Business
In this Budget, a new levy �Secondary and Higher Education Cess� (SHE Cess) of 1% has been introduced on all taxes (excise, customs and service tax). This will be effective from 01.03.2007, except in respect of service tax. This will be leviable on service tax on enactment of Finance Bill, 2007.
It is a settled proposition that any new levy will not be applicable on the Pre-budget stock held as at 12:00 midnight on 28.02.2007 in the daily stock account. When the education cess was introduced in 2004, though initially it was not accepted by the field formations, subsequently, it was clarified by the CBE&C that the same shall not be leviable on the Pre-budget stock. For this purpose, we need to take a printout of the Pre-budget stock, excisable goods / category / grade wise and submit a communication to the Central Excise authorities. We also need to identify and tag the Pre-budget stock in the SAP system, so that when the excise invoices are prepared for the dispatch of Pre-budget stock, the new levy is not paid. The IT department to ensure that as and when the Pre-budget stock and Post-budget stock are simultaneously cleared, this new Cess is paid on the dispatches of Post-budget stock. The excise invoices prepared for the clearances of Pre-budget stock shall have the remarks �CLEARANCE OF PRE-BUDGET STOCK�. The IT department need to make facilities in the system to have the available Pre-budget stock, excisable goods / category / grade wise on a daily basis, after considering the clearances made from the said stock. Kindly appreciate that in respect of MS & HSD, cenvat credit is not available and therefore, if the new cess is paid for the Pre-budget stock, it will be to our cost. Kindly take immediate action in this regard, so that this cess is not paid for clearances made from 00:00 hours on 01.03.2007, out of the Pre-budget stock. Regards
With Regards,
Secondary and Higher Education Cess (SHE Cess) applicable from 1-3-2007 | 82 comments (82 topical, 0 hidden)
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