Levy and collection of Cess 
 
  1. There shall be levied and collected by the Government a Cess at the rate of five percentum on the advolerem on the quantum of purchase of goods .

  2. The Cess levied under sub-section (1) shall be collected in such manner as may be prescribed.

  3. If any dealer fails to pay the amount of the Cess levied under sub-section (1), he shall in addition to the amount of Cess be liable to pay interest on the amount of Cess due from him at the rate of one rupee and fifty paise for every one hundred rupees or part thereof for each month or part thereof, from the date of default.

  4. The Cess levied under sub-section (1) or interest payable under sub-section (2) shall be collected by the Commercial Taxes Department and shall be credited to the fund constituted under Section 8 of this Act.

  5. If the cess is levied and collected under this Section at first point of purchase of the goods, no cess shall be levied at subsequent points of sale or purchase .
 
Collection of cess by deduction from the amounts payable to dealers.
  1. Notwithstanding anything contained in this Act, a Department of the CentralGovernment or the State Government or an Industrial Commercial or trading undertaking of the Central Government or the State Government, or a local authority or a statutory body,or a company registered under the Companies Act, 1956 or any other person which, the Government may notify from time to time shall deduct from out of the amounts payable by them to a dealer in respect of goods purchased by them, an amount as per the calculation prescribed:
    Provided that in the case of Food Corporation of India and Andhra Pradesh Civil Supplies Corporation, whenever rice is purchased from the dealers, the Rural Development Cess component on the corresponding paddy shall be the amount deductable under this sub-section.

  2. The cess deducted under sub-section (1) shall be remitted to Govenment in such manner and within such time as may be prescribed.

  3. The authority or person making deduction under sub-section (1) shall furnish to the dealer from whom such deduction is mades, a certificate, containning such particulars as may be prescribed.

  4. If any such authority or person defaults to deduct the cess specified under sub-section(1) or defaults to remit the amount so deducted or any portion thereof as required under sub-section (2), it shall be liable to pay, in addition to the amount deductable, interest at the rates specified in sub-section(3) of section 7 of the Act on the amount with respect to which the default has taken place from the date of default to the date on which such amount is remitted.

  5. The mode of deduction under sub-section (2) shall be without prejudice to any other mode of recovery of cess due under this Act from the dealer liable to pay Rural Development Cess."