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Cess

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	A cess is a form of tax levied by the government on tax with specific purposes till the time the government gets enough money for that purpose. Different from the usual taxes and duties like excise and personal income tax, a cess is imposed as an additional tax besides the existing tax (tax on tax). For example, the Swachh Bharat cess is levied by the government for cleanliness activities that it is undertaking across India.</div>
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	A cess, generally paid by everyday public, is added to their basic tax liability paid as part of total tax paid.</div>
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	<strong>Difference between tax and cess</strong></div>
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	A cess is different from taxes as it is imposed as an additional tax besides the existing tax (tax on tax). Another difference lies in the way the revenue recovered from cess is maintained. While revenue from taxes like income tax is kept in the Consolidated Fund of India (CFI) and the government can use it for any purposes it deems fit, the revenue coming from cess is first credited to the Consolidated Fund, and the government may then, after due appropriation from Parliament, utilise it for the specified purpose.</div>
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	Another major difference between central taxes and cess is that the proceeds of a cess may or may not be shared with the state governments, while that of taxes have to be shared.</div>
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	<strong>Various types of cesses levied by the government</strong></div>
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	The government levies different cesses on services it provides to the public. Some of them are as follows:</div>
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	<strong>Education cess: </strong>Collected by the government to provide the mandatory free standard primary education to all citizens.</div>
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	<strong>Health cess:</strong> Proposed in 2018 by former finance minister Arun Jaitley to meet the health requirements of below-poverty-line families.&nbsp;&nbsp;</div>
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	<strong>Road cess or fuel cess: </strong>For maintenance of roads and infrastructure.</div>
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	<strong>Clean energy cess: </strong>Introduced in 2010, it is a carbon tax on the production and import of coal, lignite and peat, operating on the &ldquo;polluter pays&rdquo; principle.</div>
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	<strong>Krishi Kalyan cess:</strong> It was introduced in 2016 to provide additional support to farmers for agricultural activities.</div>
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	<strong>Swachh Bharat cess:</strong> Introduced in 2014 with the objective of delivering a clean India, it is levied at 0.5 per cent on all taxable services to fund Swachh Bharat initiatives.</div>
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What is Cess, Cess News, Cess Definition

What is Cess

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	An indirect tax is one that is not paid directly by a person to the government but collected by an intermediary and passed on to the government. Indirect taxes are imposed on goods and services on the basis of production, supply, sale or purchase of products or provision of services, in the form of goods and services tax (GST).</div>
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	GST, rolled out in 2017, replaced various indirect tax laws that previously existed in India, such as import and export duty, excise, sales tax, value-added tax (VAT), service tax, entertainment tax, electricity duty, tax on passenger fares, freights etc.</div>
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	<strong>How are indirect taxes collected?</strong></div>
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	An indirect tax is collected from the consumer by an intermediary, such as manufacturer, trader or service provider. The intermediary files a tax return and forwards the tax proceeds to the government with the tax return. The consumer bears the final economic burden of the tax by paying more for the product.</div>
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	By comparison, direct taxes are imposed on persons and collected by the government directly from those on whom they are imposed.</div>
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	In indirect taxation, the obligation of tax payment varies from one consumer to another, as these taxes are levied by the government on goods and services &mdash; not on the income, profit or revenue of an individual. These taxes can be shifted from one taxpayer to another. This is unlike direct taxes, which are borne by the person on whom the tax is levied.</div>
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	<strong>What is GST?</strong></div>
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	GST was rolled out on July 1, 2017, as India&rsquo;s most comprehensive indirect tax reform. It consolidated multiple indirect tax that existed previously into a single one. The implementation of GST aimed to make the indirect tax system more unified across the many states of the country. Read more... (https://www.business-standard.com/about/what-is-goods-and-services-tax)&nbsp;</div>

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What is Indirect tax, Indirect tax News, Budget 2020 News, Indirect tax Calculation

Indirect Tax

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	As the name suggests, direct taxes are thoe that are levied directly on taxpayers &mdash; the income-tax, wealth tax, corporation tax, etc. In other words, it is a type of tax where the impact and the incidence fall under the same category.</div>
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	Direct taxes in India are overseen by the Central Board of Direct Taxes (CBDT). It was formed as a result of Central Board of Revenue Act, 1924.</div>
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	<strong>Some examples of direct tax:</strong></div>
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	<strong>Income tax</strong>: Income tax is paid by an individual based on his/her taxable income in a given financial year. Taxable income refers to total income minus applicable deductions and exemptions.</div>
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	<strong>Corporation tax: </strong>Corporation Tax is the money paid by companies and businesses on the income earned by them in a given financial year.</div>
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	On September 2019, the central government announced a cut in the rate of corporation tax for domestic companies to 22 per cent from 30 per cent previously. This brought effective corporation tax rate, including all additional levies, to about 25.2 per cent, for companies that do not receive any incentives or exemptions.</div>
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What is Direct Tax, Direct Tax Definition, Direct Tax News

Direct Tax

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	Taxation is the primary source of income for the government. The most important revenue receipts for the government, taxes are involuntary fees levied on individuals and corporations to finance government activities. Revenue receipts can be of two types &mdash; non-tax revenue and tax revenue. Tax revenue is the income gained by the government through taxation.</div>
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	Tax revenue forms a part of the Receipt Budget, which in turn is part of the Annual Financial Statement of the Union Budget.</div>
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	Tax revenue is the result of the application of a tax rate to a tax base. Total tax revenue as a percentage of GDP indicates the share of the country&#39;s output collected by the government through taxes. Tax revenue can be regarded as one measure of the degree to which the government controls the economy&#39;s resources.</div>
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	Taxes collected from both direct tax and indirect tax are the government&rsquo;s tax revenue. It includes collections from income tax, corporation tax, customs, wealth tax, tax on land revenue, etc.</div>
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	Direct tax is the tax that is paid directly to the government by the person or company on whom it is levied. Income tax, wealth tax, corporation tax and property tax are some examples of direct tax. Indirect taxes are those that are collected by intermediaries from individuals and corporations who bear the burden of the tax and passed on to the government. Goods and Services Tax (GST) is an example of indirect tax. Corporation tax forms a large chunk of the government&rsquo;s tax revenue.</div>
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What is Tax revenue, Tax revenue Definition, Tax revenue News

Tax Revenue

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	Central welfare schemes, implemented by the government to provide financial and other aids to individuals who cannot support themselves, can be categorised into two sections &mdash; centrally sponsored schemes and central sector schemes.</div>
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	Centrally Sponsored Schemes (CSS) are those schemes which are implemented by the state government but sponsored by the central government with a defined shareholding. At present, there are 30 centrally-sponsored schemes but these are umbrella programmes and they have many sub-schemes under them. The funding is borne by the states in the ratio of 50:50 or 90:10 or 75:25 or 70:30.</div>
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	These schemes are aimed at supplementing efforts undertaken by the state government because the central government has more resources at its disposal. These schemes can either be national or regional in character. In CSS, the funding by the central government works as an initiation, with further spending coming from states towards the cause.</div>
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	<strong>What is the difference between central sector schemes and centrally sponsored schemes?</strong></div>
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	Central sector schemes are implemented by the central government and the budget or financing needed for the scheme is entirely sourced by the central government. By comparison, the implementation of a centrally sponsored scheme is done by state governments. For example, the Mahatma Gandhi National Rural Employment Generation Scheme is a centrally sponsored scheme, while the National Rural Health Mission is a central sector scheme.</div>
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	Centrally sponsored schemes can be further divided into two sections &mdash; core of core schemes and core schemes. Green Revolution, White Revolution, Blue Revolution, Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Krishi Sinchai Yojana, Pradhan Manti Awas Yojana, Swachh Bharat Mission, Mid-day meals in schools and National Livelihood Mission are some core schemes. Core of the core schemes, on the other hand, include the umbrella scheme for development of scheduled castes, umbrella scheme for development of minorities, and the Mahatma Gandhi National Rural Employment Generation Scheme. Core of core schemes are implemented for social inclusion and social protection, and they are fully funded by the central government.</div>

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