• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

K.R. Srivats

New Delhi , Aug. 17

THE PHD Chamber of Commerce and Industry (PHDCCI) has urged the Finance Ministry to take a relook at the method of calculation of education cess on customs duty.

The chamber has sought remedial steps to do away with what it termed as an "unintentional cess on cess" in the calculation of education cess on customs duty.

The Finance Bill 2004 had proposed a 2 per cent education cess on all Central taxes.

In its post-Budget memorandum, submitted to the Finance Ministry recently, PHDCCI has held that there is an element of cess on cess in the method specified by the revenue department for calculation of education cess on customs duty.

"There is an apprehension that the method of calculation of education cess on customs duty will have a cascading effect," the chamber has said.

The Finance Ministry had as part of the Budget-related circulars issued in July 2004 spelt out the method of calculation of education cess on customs duty by giving an example.

It held that the education cess is leviable at a rate of 2 per cent on the aggregate of duties of customs (except safeguard duty under Section 8B and 8C, countervailing duty under section 9 and anti-dumping duty under Section 9A of the Customs Tariff Act) leviable on such goods.

Only items attracting customs duty at bound rates under international commitments have been exempted from this cess. The Finance Ministry also announced that the cess attributable to the additional duty of customs (leviable under section 3 of the Customs Tariff Act) paid on inputs and capital goods would be available as credit for payment of cess on the final products manufactured in India.

More Stories on : Taxation | Education | Other States | Industry Associations

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Left parties not against reforms, says Bardhan

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line