Education cess and secondary and higher education cess :
With effect from 10.07.2004, an education cess has been levied on items imported into India. It is leviable @ 2% on the aggregate of duties of customs leviable on such goods. However, following duties shall be excluded for computing this cess:
(a) Additional duty leviable under section 3(5) of the Customs Tariff Act, 1975;
(b) Safeguard duty under section 8B and 8C of the Customs Tariff Act, 1975
(c) Countervailing duty under section 9 of the Customs Tariff Act, 1975
(d) Anti dumping duty under section 9A of the Customs Tariff Act, 1975
(e) Secondary and higher education cess
(f) Education cess itself on imported goods
Items attracting customs duty at bound rates under International Commitments are e xempt from this cess. The education cess so collected is utilized for providing and financing universalised quality basic education.
Further, a secondary and higher education cess @ 1% has also been imposed on imported goods with effect from 01.03.2007. The proceeds from this cess will be utilized to finance secondary and higher education. It shall be chargeable on the aggregate duties of customs.
However, following duties shall be excluded for computing this cess: –
(a) Additional duty leviable under section 3(5) of the Customs Tariff Act, 1975;
(b) Safeguard duty referred to in sections 8B and 8C of the Customs Tariff Act, 1975;
(c) Countervailing duty leviable under section 9 of the Customs Tariff Act, 1975;
(d) Anti-dumping duty leviable under section 9A of the Customs Tariff Act, 1975; and
(e) Education cess and
(f) Secondary and higher education cess itself on imported goods.
The education cess and secondary and higher education cess on imported goods are in addition to any other duties of customs chargeable on such goods, under the Customs Act, 1962 or any other law for the time being in force.
The provisions of the Customs Act, 1962 and the rules and regulations made thereunder, including those relating to refunds and exemptions from duties and imposition of penalty shall apply in relation to the levy and collection of education cess and secondary and higher education cess on imported goods as they apply in relation to the levy and collection of the duties of customs on such goods.