Define: Cess

Cess refers to a tax or levy imposed by the government on specific goods, services, or activities to fund specific purposes, such as infrastructure development or welfare programs.

There are various types of cess, including education cess, Swachh Bharat cess, Krishi Kalyan cess, and infrastructure cess, among others. Each cess is imposed for a specific purpose.

Cess differs from other taxes as it is levied for a specific purpose and is usually temporary. It is often imposed in addition to existing taxes, such as income tax or goods and services tax (GST).

The liability to pay cess depends on the specific cess and its applicability. For example, education cess is typically applicable to individuals and businesses earning income liable for income tax.

Cess is usually collected by the government through the same mechanisms used for other taxes. For instance, education cess is collected along with income tax, while Swachh Bharat cess is collected along with service tax.

Cess is generally non-refundable unless specifically mentioned by the government. Once collected, it is utilized for the designated purpose and cannot be claimed back by taxpayers.

Yes, the government has the authority to change the rates of cess as per the requirements and objectives of the specific cess. Changes in cess rates are usually announced during the annual budget or through separate notifications.

Exemptions or deductions for cess are rare. However, certain categories of individuals or businesses may be exempted from specific cess based on government notifications or provisions.

In certain cases, the imposition or collection of cess can be challenged in court if it is deemed unconstitutional or against the principles of natural justice. However, such challenges are subject to specific legal requirements and may vary depending on the jurisdiction.

Cess funds are utilized by the government for the specific purpose for which they were imposed. For example, education cess is used to fund educational initiatives, while Swachh Bharat cess is utilized for sanitation and cleanliness programs. The utilization of cess funds is monitored by the government and audited by relevant authorities.