Education Cess & Higher education cess

[vuchcholla Bhaskar]

Dear Sir,

Some of our suppliers charging Education cess and Higher education cess after budget. Now i m eligible to take credit or not. If i am taking credit then what is the procedure for refund like time period and documents required.

please help us in this regard.

Thanks,

Bhaskar

[Rajagopalan Ranganathan]

Sir,

It depends upon the date of invoice. If the invoice is dated prior to 1.3.2015, then your supplier would have charged Education cess and Secondary and Higher Education cess since these are exempted from 1.3.2015 under Notification No. 14 and 15 of 2015 CE dated 1.3.2015. If the invoice is dated prior to 1.3.2015 you supplier would have charged the cesses and you can take credit of the same but you cannot utilise the same the cesses are not payable on or after 13.2015. However, there is no clarity how to utilise the closing balance available in your credit account on or after 1.3.2015. We have to await the instructions from CBEC. However there is no question of refund of the same.

[YAGAY and SUN]

A nice reply by an expert. Sir your replies are simply perfect.

[vuchcholla Bhaskar]

Dear Sir,

Thanks for the valuable information.

Thanks,

Bhaskar

Dear Friends

If Invoice date is on or before 28/2/15 and removal date after 28/2/2015 even after can we take credit of Education cess.

regards

AI Summary

Education cess credit: invoices before the budget cutoff allow input credit, but post-exemption utilisation remains unclear.
Input credit for Education Cess and Higher Education Cess depends on invoice date: cesses charged on invoices before 1.3.2015 may be taken as credit, but the cesses ceased to be payable on or after 1.3.2015 under Notifications No. 14 and 15 of 2015. There is no current clarity on how to utilise closing credit balances of these cesses after the exemption date and no mechanism for refund; administrative guidance from CBEC is awaited.