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CESS Rate

CESS Rate

In general CESS rate is the term which denotes the tax. Previously it is the term which refers to the local tax. But it is being used still in Ireland as an official term for tax payment. In our country, this CESS rate is referred with a prefix denoting a respective word regarding the taxation like irrigational CESS, Educational CESS etc. this term was referred to as land value tax in Scotland.

The CESS rate is not the rate which is required to be paid on all the goods. Regarding this rate, there are two classifications made on the goods and services. They include i) Tax Free Goods and ii) Taxable Goods.

Some of the goods which are free from this CESS rate include about forty commodities. Few of them are books, periodicals, fruits and vegetables, flowers, salt, poultry, eggs, water, medicines which saves our life, distilled water, sports items, kerosene, certain type of insecticides etc.

The types of goods which are required to pay this CESS rate are classified according to the BPMC act of 1949. This type of goods typically covers about sixty different goods and items. The following are the banks in which these CESS rates can be paid. This includes State bank of India, Vijaya bank, Indian Bank, Bank of Maharashtra, Syndicate Bank, Bank of India, Bank of Baroda etc. It is the corporation which has to make a decision on these CESS rates which is to be paid on certain types of commodity. This rate has to be levied either on or before the 20th of February of each financial year. At present the CESS rate for the following goods like Agricultural products, Wines, and other goods which are taxable are 0.2%, 2.0% and 1.0% respectively. For certain goods pertaining to construction articles the CESS rates vary from 2% to 6%.

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