Question

Consider the following statements:

1. Cess is Tax on Tax
2. The purpose of imposing a cess is to reduce inequality further
3. Surcharge is the tax imposed on cess.

Which of the above statements are correct?

• A.
  1 and 2
• B.
  1 and 3
• C.
  2 and 3
• D.
  None of the above

Answer 1

The correct option is D

None of the above
Cess is tax on tax with a specific purpose.Governments generally address socio-eonomic inequalities with proceeds of various cesses.