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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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