With reference to cess in India, consider the following statements: 1. The constitutional provisions relating to the levy and collection of cess are primarily dealt with under Article 270 of the Constitution. 2. Revenue collected through Union cesses and surcharges is excluded from the divisible pool of taxes shared between the Centre and the States. Which of the statements given above is/are correct? |ForumIAS

Q. With reference to cess in India, consider the following statements:
1.The constitutional provisions relating to the levy and collection of cess are primarily dealt with under Article 270 of the Constitution.
2.Revenue collected through Union cesses and surcharges is excluded from the divisible pool of taxes shared between the Centre and the States.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C

Notes:

Explanation: Article 270 provides for the distribution of certain taxes between the Union and the States and specifically excludes cesses and surcharges levied by the Union from the divisible pool. Hence, both statements are correct.

Source- BS

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS