The Coffee Cess Committee.
Other Construction Workers Welfare Cess.
Introduced Calamity Cess for the first time.
Cess: 3% on total of income tax + surcharge.
The service tax
currently stands at 12.36% including education Cess.
Cess: 3% of the aggregate of income tax + surcharge.
The service tax is
currently levied at the rate 12.36%, including education Cess.
The Water Cess Act, 1977,
meant to reduce pollution has also made marginal impacts.
Of the Cess on High Speed Diesel(HSD) has been kept for this program.
Thus, the effective rate for these
companies will be 25.17% including Cess and surcharge,
This Cess was introduced in March 2016 to finance
infrastructure products in the country.
The utilisation of the Cess lying with the state governments has been very less.
The earlier proposed 2% Cess on all regional flights has been done away with.
The Service Tax is currently
levied at the rate 12.36 per cent, including education Cess.
To fund this scheme,
the Centre earmarked Rs 0.75/ per litre Cess on high-speed diesel.
In addition, a 4% health and education Cess was also proposed which was not implemented.
The education Cess and higher-education Cess was revamped into a health-and-education
Cess from 2018-19 at 4%.
At same time, after adding surcharge and Cess, the company will have to pay 25.17% tax.
How will the Centre compensate states on a shortfall in Cess collection in a particular year?
Recently introduced Swachh Bharat Cess tax, Krishi Kalyan Cess tax,
and infrastructure Cess tax are common examples.
The India Coffee House chain commenced as a small outlet by the Coffee Cess Committee in 1936.
In order to utilise the Cess proceeds lying in the CFI,
the government has to create a dedicated fund.
Including the surcharge and Cess, the statutory tax rate for domestic companies
ranges between 26% and 35%(see Table 1).
This Cess is levied by state-level boards which then
distribute the funds through various social security schemes to construction workers.
Finance minister Arun Jaitley, in
his Union Budget, had proposed to raise service tax from 12.36%(including education Cess) to 14%.
Most states did not even constitute welfare boards until as late as 2011,
so the Cess collected was not disbursed.
However, if you hold it for more than 3 years,
then it will be taxed at 20%(+Cess) with indexation benefit.
But the government's plan
is to invest the amount coming from 1% Cess increased in education and health in this scheme.
The approval would
allow increasing the maximum rate at which the compensation Cess can be levied from 15% to 25% on:.
In other words,
the Centre and the states can now use the surplus Cess during 2018-19, instead of waiting till 2022.