> SURCHARGE --A fee or other charge that is added to the cost of a good or service. --A surcharge is typically added to an existing tax, and may not be included in the stated price of a good or service. It may be a temporary measure to defray the cost of increased commodity pricing, such as with a fuel surcharge, or it may be permanent. -- A surcharge does not have to be imposed by the government. A fee or other charge that is added to the cost of a good or service. ---A surcharge is typically added to an existing tax, and may not be included in the stated price of a good or service. It may be a temporary measure to defray the cost of increased commodity pricing, such as with a fuel surcharge, or it may be permanent. --A surcharge does not have to be imposed by the government. > CESS This is a tax on tax, levied by the govt for a specific purpose. Generally, cess is expected to be levied till the time the govt gets enough money for that purpose. The education cess, that is levied currently, is meant to finance basic education in the country

Surcharge means additional charge or payment done on the specified amount. Now in terms of tax, surcharge is the additional tax paid on the total tax liability calculated before education cess. Normally Surcharge is charged at 10% on income above Rs. 1 crore. We usually pay surcharges on electricity bill and the amount goes into the consolidated fund of India. The government can spend it on any item it deems fit. Cess is usually preceded by Education cess, Higher Education cess etc which is usually charged on actual tax liability. Like the service tax at 14% is inclusive of 3% cess. Or while filing ITR, after calculating your tax liability, cess at 3% is charged over it and Net tax liability is arrived at. Now, cess charged is earmarked for a particular/specified purpose only.