Edu.cess & SH Cess withdrawn.

[Samik Chaudhuri]

Sir

Our manufacturing co has not yet completed one year so we are having a huge a amount Ed.Cess and SH Cess in RG C/A and Service Tax which are exempted in this Budget now how can we adjust these cess amount. Please suggest me.

With thanks and regards

Samik Chaudhuri.

[YAGAY andSUN]

Dear Samik,

You can adjust it against the output liability of service tax till the time service tax does not subsume these cesses or the alternatively, you may through your Association make a representation to Central Government/CBEC/North Block/Writ Petition to get the cash refund or permission to get it adjusted against any other duty for the time being in force.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[DR.MARIAPPAN GOVINDARAJAN]

On representation from various stakeholders only the Department will issue notification for refund of accumulated credit.

[Mahir S]

Yes, and mostly there shall be a clarification on the issue soon.

AI Summary

Cess credit adjustment: allow use against output tax liability while refund notifications or alternative approvals are sought. Accumulated education and secondary and higher education cess credits may be adjusted against current output service tax liability until formal subsumption; alternatively, taxpayers may seek administrative relief through representations requesting a department notification authorising cash refunds or temporary adjustment of those cess credits against other duties, with departmental clarification or notification expected following stakeholder representations.