Shortage Of Ed Cess & Hed 1%

[Avinash Bhavsar]

Dear Sir,

We do'nt have the sufficient fund in Ed Cess 2% and Hed 1% can we debit this amount form CENVAT credit or deposits the mat in the bank.

Regads,

Avinash Bhavsar

[JAMES PG]

The sub-rule (4) of Rule 3 of the Cenvat Credit Rules, 2004 provides that Cenvat Credit can be utilized for payment of any duty of excise on any final product. Education Cess & S&H Education Cess are duties of excise

[YAGAY andSUN]

Yes, you may utilise the credit of basic excise duty for the payment of Cess under Rule 3(4)(a) of the CENVAT credit Rules, 2004, as amended time to time.

AI Summary

Can Education and Higher Education Cess be paid using CENVAT Credit? Yes, under Rule 3(4) of CENVAT Credit Rules. A query was raised regarding the insufficiency of funds for Education Cess (2%) and Secondary & Higher Education Cess (1%) and whether these can be debited from CENVAT credit or need to be deposited in the bank. Two responses clarified that under Rule 3(4) of the CENVAT Credit Rules, 2004, CENVAT Credit can be utilized for paying these duties, as they are considered duties of excise. Therefore, the credit of basic excise duty can be used for the payment of these cesses.