Goods and Services Tax : This guide clarifies the legal and constitutional differences between tax, duty, cess, surcharge, and fee. Understanding these dis...
Custom Duty : Should Cess and Surcharge Be Permanent? Explore the history and purpose of Cess and its impact on taxes and duties....
Income Tax : Certain taxpayers have been claiming deduction on account of 'cess' under section 40 of the Income Tax Act, 1961 claiming that 'ce...
Income Tax : Navigate the controversy surrounding the allowability of Cess as expenditure. Dive into the amendments brought by the Finance Act,...
Income Tax : Clarification regarding treatment of cess and surcharge Section 40 of the Act specifies the amounts which shall not be deducted in...
Corporate Law : The government outlined year-wise collections and utilisation of major cesses and surcharges, confirming they are credited to the ...
Custom Duty : CESTAT Mumbai ruled that Education Cess and Secondary & Higher Education Cess paid through MEIS duty credit scrips for past import...
Income Tax : ITAT Delhi held that the Revenue’s appeal was not maintainable after excluding Education Cess from tax effect computation. The T...
Goods and Services Tax : The court examined whether unutilized cess credits could be refunded after GST transition. It held that without explicit statutory...
Service Tax : CESTAT Mumbai held that accumulated credit of Education Cess, SHE Cess, and KKC cannot be transitioned or refunded because these l...
Income Tax : The Supreme Court rules that 'Education Cess' cannot be claimed as an expenditure. Read the detailed analysis of JCIT vs Sesa Goa ...
CESTAT set aside the impugned order pertaining to the rejection of refund of unutilized cenvat credit of Education Cess, SHEC and KKC
Certain taxpayers have been claiming deduction on account of ‘cess’ under section 40 of the Income Tax Act, 1961 claiming that ‘cess’ has not been specifically mentioned in the provisions of the section 40(a) (ii) of the Income Tax Act, 1961 and therefore, cess ought to be an allowable expenditure. Such assesses placed strong reliance on various judicial judgments such as Sesa Goa Limited versus JCIT (Bombay High Court).
Education cess is an additional surcharge levied on income tax and hence it partakes the character of income tax and is not allowable as deduction.
Navigate the controversy surrounding the allowability of Cess as expenditure. Dive into the amendments brought by the Finance Act, 2022, shedding light on the retrospective implications, rectification proceedings, and potential legal ramifications. Stay informed on tax complexities.
Clarification regarding treatment of cess and surcharge Section 40 of the Act specifies the amounts which shall not be deducted in computing the income chargeable under the head “Profits and gains of business or profession”. Sub-clause (ii) of clause (a) of section 40 of the Act provides that any sum paid on account of any […]
LG Soft India Private Limited Vs DCIT (ITAT Bangalore) The Hon’ble Bombay High Court in the case of Sesa Goa Limited v. JCIT (supra) had held education cess is an allowable expenditure as the word ‘cess’ is conspicuously absent under the provisions of section 40(a)(ii) of the I.T.Act The Hon’ble High Court also placed reliance […]
