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Which of the following is not correct?
A cess is a tax on tax, levied by the government for a specific purpose
Surcharge collected by the government can be used for any purpose
The money collected out of Cess goes to the Consolidated fund of India
None
NOTE-all the above mentioned statements are correct.
A common feature of both surcharge and cess is that the centre need not share it with states. Following are the difference between the usual taxes, surcharge and cess. 1. The usual taxes goes to the consolidated fund of India and can be spend for any purposes. 2. Surcharge also goes to the consolidated fund of India and can be spent for any purposes. 3. Cess goes to Consolidated Fund of India but can be spend only for the specific purposes. For example- the fuel cess collected from people first goes to CFI. Then appropriation Bill is passed in the parliament and money collected from the fuel cess is transferred to the Central Road fund.
By: Shubham Tiwari ProfileResourcesReport error
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