Booking of Education Cess - Regarding discrepancy - Central Excise - Coord/13-6/H/A/cs.Edu.Cess/06-7/Vol. VI/294

F.No. Coord/13-6/H/A/cs.Edu.Cess/06-7/Vol. VI/294 Dated 9-3-2007 Subject :- Booking of Education Cess - Regarding discrepancy. I am to invite a reference to this office Office Memorandum No. Coord/13-6/98-99/Vol-IV/295 dated 6-12-2004, 302 dated 24-12-04 regarding accounting of collection of Education Cess (copy enclosed). The field PAOs have informed that the amount of the duties and cess are not available separately in the challans. Thus the resulting amount accounted for in the three heads of Educations Cess comes to less than 2%. In the case of customs, no amount is available in the challans under head Customs - Education Cess as reported by majority of PAOs. Wherever PLA is operated, Tax Asstts. are required to work out tax and Cess thereon separately and make necessary classification in the challans before sending the consolidated statement to PAO. Further this office has to furnish the cess amount under the three heads (excise, service tax customs) separately to CCA, Ministry of HRD on regular basis. The Ministry of HRD is monitoring the progress of collection of education cess as the preceeds under Education Cess are to be transferred to the Prarambhik Shiksha Kosh through inter-account transfer to the public account. The shortfall in Cess amount accounted for in this context will be viewed seriously. In order to streamline the work for accurate booking of Tax and Cess thereon, you are requested to issue necessary instructions to the concerned authorities to classify the element of Tax and Cess separately especially in the case of Customs. The Department must ensure correct classification while sending cash amount/challans to PAOs, to avoid any discrepancy. Pr. CCA has desired that the matter may be given top priority so that correct figure of Cess could be accounted for reported to CCA, Ministry of HRD.