Lok Sabha Question No. 997 (UNSTARRED), answered on 2017-07-21
Subject: Rates of Cess and Surcharge
Ministry: FINANCE
Asked by: KULAMANI SAMAL

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA UNSTARRED QUESTIONS NO. 997

TO BE ANSWERED ON FRIDAY, JULY 21, 2017 ASHADHA 30, 1939 (SAKA)

## RATES OF CESS AND SURCHARGE

997: DR. KULAMANI SAMAL:

Will the Minister of Finance be pleased to state:

- (a) the  details  of  the  rates  of  cess  and  surcharge  being  charged  by  the Government through various direct and indirect taxes;
- (b) the  extent  by  which  Government  has  been  benefited,  out  of  cess  and surcharge during the last three financial year, State/UT-wise;
- (c) whether the Government  proposes to eliminate  the  different  rates  of  cess and  surcharge  being  charged  through  various  direct  and  indirect  taxes gradually in a phased manner; and
- (d) if so, the details thereof?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SANTOSH KUMAR GANGWAR)

(a) :

## Direct Tax

The  cesses, being 'Education Cess on income-tax' at two percent and 'Secondary and Higher Education Cess on income-tax' at one per cent, are levied by the Union to fulfil the commitment of the Government to provide and finance universalised quality basic education and secondary and higher education respectively every year through the Finance Act.

The  education  cess  was  introduced  in  the  tax  proposals  of  budget  2004,  secondary  and higher education cess was introduced in the tax proposals of budget 2007.

The Income Declaration Scheme, 2016 (the Scheme) inter alia provided for levy of tax and penalty  @  30%  and  7.5%  of  undisclosed  income  respectively.  The  Scheme  also  provided  for levy of surcharge under the name Krishi Kalyan Cess @ 25% of the tax.

An  income  taxable  under  section  115BBE  of  the  Income-tax  Act,  1961,  from  the Assessment Year 2016-17 and onward, shall be subject to tax @ 60% and surcharge @25% of tax along with the applicable cess.

Vide  the  Taxation  Laws  (Second  Amendment)  Act,  2016,  the  Taxation  and  Investment Regime  for  Pradhan  Mantri  Garib  Kalyan  Yojana,  2016  (PMGKY)  was  introduced.  Under PMGKY,  a  declarant  was  required  to  pay  tax  @  30%  &  penalty  @10%  of  the  undisclosed income respectively and surcharge under the name Pradhan Mantri Garib Kalyan Cess @33% of tax.

The details of surcharges being levied for the financial years 2015-16 and 2016-17 is at annexure.

## Indirect Tax

The following cess and surcharge are being charged by the Government is as under:

| S.No.               | Cess/Surcharge                                               | Rate                                                                                 |
|---------------------|--------------------------------------------------------------|--------------------------------------------------------------------------------------|
|                     | Customs Duties                                               |                                                                                      |
| 1                   | Education Cess                                               | 2%                                                                                   |
| 2.                  | Secondary and Higher Secondary Education Cess                | 1%                                                                                   |
| Union Excise Duties | Union Excise Duties                                          |                                                                                      |
| 1.                  | Additional Duty of Excise on Motor spirit                    | Rs. 6 per litre                                                                      |
| 2.                  | Additional Duty of Excise on High speed Diesel Oil           | Rs. 6 per litre                                                                      |
| 3.                  | Special Additional Duty of Excise on Motor spirit            | Rs. 7 per litre                                                                      |
| 4.                  | Special Additional Duty of Excise on High speed Diesel Oil   | Rs. 1 per litre                                                                      |
| 5.                  | Cess on crude petroleum oil                                  | 20%                                                                                  |
| 6.                  | NCCD on tobacco and tobacco products and crude petroleum oil | 10% on tobacco and tobacco products in general and Rs. 50 per tonne on petroleum oil |

(b):

The  state/UT-wise  information  on  Cess/Surcharge  is  not  maintained  by  the  Government. However, the total collection from Cess/Surcharge during the last three financial year is given as under:

(Rs. In Crore)

| Financial year   | Direct Tax   | Indirect Tax   |
|------------------|--------------|----------------|
| 2014-15          | 35438.55     | 83838.4        |
| 2015-16          | 40469.19     | 136932.5       |
| 2016-17          | 46939.17*    | 188368.6 **    |

(c) & (d ):

## Direct Tax

There is no such proposal under consideration at present.

## Indirect Tax

Yes, Madam. The Government has eliminated various cess/surcharge during last few Financial years and some more cesses / surcharges has been abolished by The Taxation Laws Amendment Act, 2017. The detail thereof is as under:

## Budget 2015-16

- 1.Education Cess on taxable services
- 2.Secondary & Higher Education Cess on taxable services

## Budget 2016-17

1. The Mica Mines Labour Welfare Fund Act, 1946
2. The Salt Cess Act, 1953
3. The Merchant Shipping Act, 1958
4. The Textile Committee Act, 1963
5. The Limestone and Dolomite Mines Labour Welfare Funds Act, 1972 [2 Cesses]
6. The Tobacco Cess Act, 1975
7. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976 [3 Cesses]
8. The Cine-workers Welfare Cess Act, 1981

## Budget 2017-18

Research & Development Cess Act

## Taxation Laws Amendment Act, 2017

1. Cess on Rubber
2. Cess on Automobile
3. Cess on Tea
4. Cess on Coal
5. Cess on Bidis
6. Cess levied on water consumed by certain industries and by local authorities
7. Cess on Sugar
8. Cess on jute goods manufactured or produced wholly or in part of jute
9. Education Cess on excisable goods
10. 10 Secondary & Higher Education Cess on excisable good.
11. 11 Clean Energy Cess
12. 12 Cess on cement
13. 13 Cess on strawboard

*****

## Annexure

Annexure as referred to in reply of part (a) to Unstarred Question No. 997 to be answered on 21 st  July, 2017 in Lok Sabha on the subject of Rates of Cess and Surcharge.

## Direct Tax

| Financial Year                                                                                                                                                                                                                                         | Income Range                                                                                                                                                                                                                                           | Rate                                                                                                                                                                                                                                                   | Relevant Act                                                                                                                                                                                                                                           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Individual or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, 1961 | Individual or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, 1961 | Individual or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, 1961 | Individual or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, 1961 |
| 2015-16                                                                                                                                                                                                                                                | total income exceeding one crore rupees                                                                                                                                                                                                                | twelve percent                                                                                                                                                                                                                                         | Finance Act, 2016                                                                                                                                                                                                                                      |
| 2016-17                                                                                                                                                                                                                                                | income exceeding fifty lakh rupees but not exceeding one crore rupees                                                                                                                                                                                  | ten percent                                                                                                                                                                                                                                            | Finance Act, 2017                                                                                                                                                                                                                                      |
| 2016-17                                                                                                                                                                                                                                                | total income exceeding one crore rupees                                                                                                                                                                                                                | fifteen percent                                                                                                                                                                                                                                        | Finance Act, 2017                                                                                                                                                                                                                                      |
| in the case of a domestic company                                                                                                                                                                                                                      | in the case of a domestic company                                                                                                                                                                                                                      | in the case of a domestic company                                                                                                                                                                                                                      | in the case of a domestic company                                                                                                                                                                                                                      |
| 2015-16                                                                                                                                                                                                                                                | income exceeding one crore rupees but not exceeding ten crore rupees                                                                                                                                                                                   | seven percent                                                                                                                                                                                                                                          | Finance Act, 2016                                                                                                                                                                                                                                      |
| 2015-16                                                                                                                                                                                                                                                | having total income exceeding ten crore rupees                                                                                                                                                                                                         | twelve percent                                                                                                                                                                                                                                         | Finance Act, 2016                                                                                                                                                                                                                                      |
| 2016-17                                                                                                                                                                                                                                                | income exceeding one crore rupees but not exceeding ten crore rupees                                                                                                                                                                                   | seven percent                                                                                                                                                                                                                                          | Finance Act, 2017                                                                                                                                                                                                                                      |
| 2016-17                                                                                                                                                                                                                                                | having total income exceeding ten crore rupees                                                                                                                                                                                                         | twelve percent                                                                                                                                                                                                                                         | Finance Act, 2017                                                                                                                                                                                                                                      |
| in the case of a company, other than a domestic company                                                                                                                                                                                                | in the case of a company, other than a domestic company                                                                                                                                                                                                | in the case of a company, other than a domestic company                                                                                                                                                                                                | in the case of a company, other than a domestic company                                                                                                                                                                                                |
| 2015-16                                                                                                                                                                                                                                                | income exceeding one crore rupees but not exceeding ten crore rupees,                                                                                                                                                                                  | two percent                                                                                                                                                                                                                                            | Finance Act, 2016                                                                                                                                                                                                                                      |
| 2015-16                                                                                                                                                                                                                                                | income exceeding ten crore rupees                                                                                                                                                                                                                      | five percent                                                                                                                                                                                                                                           | Finance Act, 2016                                                                                                                                                                                                                                      |
| 2016-17                                                                                                                                                                                                                                                | income exceeding one crore rupees but not exceeding ten crore rupees,                                                                                                                                                                                  | two percent                                                                                                                                                                                                                                            | Finance Act, 2017                                                                                                                                                                                                                                      |
| 2016-17                                                                                                                                                                                                                                                | income exceeding ten crore rupees                                                                                                                                                                                                                      | five percent                                                                                                                                                                                                                                           | Finance Act, 2017                                                                                                                                                                                                                                      |
| in the case of every co-operative society                                                                                                                                                                                                              | in the case of every co-operative society                                                                                                                                                                                                              | in the case of every co-operative society                                                                                                                                                                                                              | in the case of every co-operative society                                                                                                                                                                                                              |
| 2015-16                                                                                                                                                                                                                                                | income exceeding one crore rupees                                                                                                                                                                                                                      | twelve percent                                                                                                                                                                                                                                         | Finance Act, 2016                                                                                                                                                                                                                                      |
| 2016-17                                                                                                                                                                                                                                                | income exceeding one crore rupees                                                                                                                                                                                                                      | twelve percent                                                                                                                                                                                                                                         | Finance Act, 2017                                                                                                                                                                                                                                      |

| in the case of every firm   | in the case of every firm         | in the case of every firm   | in the case of every firm   |
|-----------------------------|-----------------------------------|-----------------------------|-----------------------------|
| 2015-16                     | income exceeding one crore rupees | twelve percent              | Finance Act, 2016           |
| 2016-17                     | income exceeding one crore rupees | twelve percent              | Finance Act, 2017           |