Edu.cess & SH Cess withdrawn.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

New Company Struggles with Adjusting Education Cess Post-Exemption; Awaits Guidance on Managing Unsettled Amounts A manufacturing company, not yet a year old, is facing issues with adjusting accumulated Education Cess and Secondary Higher Education Cess due to their exemption in the recent budget. The company seeks advice on how to manage these amounts. Suggestions include adjusting the cess against service tax liabilities until further notice or representing the issue to the government for a refund or adjustment permission. Stakeholders are advised to await a departmental notification or clarification on the matter.