Only one cess on imported goods – What about goods cleared by 100% EOUs?
By TIOL News Service
NEW DELHI, MAR 16, 2012: ON the goods imported, the importers are required to pay education cesses on CVD and again on total Customs duties. In this budget, separate notifications have been issued vide Notification No. 13/2012 and 14 /2012-Customs dated 17.3.2012 to exempt the Education Cess and Secondary Education cess leviable under sub-section (1) of Section 3 of the Customs Tariff Act, 1975. The effect of these Notifications is that the imported goods will attract Cess only once on the total customs duty payable. Thus, payment of cess two times on the imported goods has been done away with. The illustration is as under:
llustration: |
Present |
Proposed |
|||
A |
Assessable value (CIF + Landing Charges) |
100 |
100 |
||
B |
Basic customs duty (BCD) 10% |
10.00 |
10.00 |
||
C |
Value for CVD (A+B) |
110.00 |
110.00 |
||
D |
CVD equivalent to central excise duty 10% |
11.00 |
11.00 |
||
E |
Educational Cess on CVD 2% |
0.22 |
0 |
||
F |
Sec. and Higher Educational Cess 1% |
0.11 |
0 |
||
G |
Customs duty for calculation of Cess |
21.33 |
21 |
||
H |
Customs Educational cess 2% |
0.43 |
0.42 |
||
I |
Customs Secondary and higher educational cess 1% |
0.21 |
0.21 |
||
J |
Value for SAD |
121.97 |
121.64 |
||
K |
SAD @ 4% |
4.88 |
4.865 |
||
Total Duty |
26.85 |
26.495 |
|||
But what about the Education Cess payable by the EOUs on clearances made in DTA? Once? Twice or thrice?