define education cess?

Question

Defination, calculation and process of leving the education cess

Answer 1

Education cess is cess/tax leviable on all direct taxes including income tax, services tax, excise, customs...

This is to be the charged, collected and deposited under the appropriate heads with the treasury challans by the person responsible for the purpose.

Education cess to be calculated at the applicable rates (2%now and 3% when made applicable later on) on the net tax amount.

Answer 2

Def. 2% on Service tax (which will be 3% from 1 April 2007 due to Budget )

Answer 3

I am sorry to say, my dear, this govt. does not have the courage to collect tax from the haves.
Yet it has to maintain the same level of expenditure on other revenue (not capital) heads.
So it decides to levy education tax on poor salaried class.
Of all the things, the foremost thing India requires is Tax Reforms