Q. Consider the following statements:
1. The states have no share in the proceeds of surcharge imposed by the Parliament.
2. Comptroller and Auditor General (CAG) is the final authority to certify net proceeds of any tax.
Which of the statements given above is/are correct?
Answer: C
Notes:
Exp) Option c is the correct answer.
Statement 1 is correct. Article 271 provides that Parliament can levy surcharge on some taxes and duties. It also provides that the proceeds of surcharges go to the centre exclusively and states have no share in it.
Statement 2 is correct. Under Article 279, CAG ascertains and certifies the net proceeds of any tax or duty. His/her certificate in this matter is final.
