Question

With reference to Cess, consider the following statements:

1. Proceeds of Cess are distributed on the recommendation of Finance Commission.

2. Cess before levying needs to be passed through parliament by a simple majority.

3. Cess is earmarked for a particular purpose only and cannot be used for any other purpose.

• A. Only 1
• B. Only 2 and 3
• C. Only 3
• D. All of the above

Answer 1

The correct option is C

Only 3

It is not distributed with states so finance commission have no say on Cess.

Cess is levied through an executive order and doesn't require majority in the Parliament.

Cess is levied only for particular purpose and cannot be used for any other purpose