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    Question

    Consider the following statements about Cess: I)

    Cess is not a permanent source of revenue for the government. II) Cess can be imposed on both indirect and direct taxes. Which of the above statements is/are correct?
    A Only I Correct Answer Incorrect Answer
    B Both I & II Correct Answer Incorrect Answer
    C Only II Correct Answer Incorrect Answer
    D Neither I nor II Correct Answer Incorrect Answer

    Solution

    Cess is a non-permanent source of revenue, imposed for specific purposes and discontinued once those purposes are fulfilled. It can be levied on both indirect and direct taxes.

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