Cess in Indian Taxation System

1) Which of the following statements is incorrect with respect to different 'cesses' levied in India?

a) A cess is a temporary levy imposed to achieve a specific objective.
b) A cess is levied an retained by the central government.
c) Collection from a cess goes to Consolidated Fund of India.
d) A cess may be discontinued after it meets its stated objectives.

2) Which of the following cesses was introduced in the Budget, 2016?

a) Krishi Kalyan cess
b) Swachh Bharat cess
c) Clean Environment cess
d) Education cess

3) Which of the following cesses are levied on 'all the taxable services'?

a) Krishi Kalyan Cess and Infrastructure Cess
b) Swachh Bharat Cess and Clean Environment Cess
c) Clean Environment Cess and Oil Development Cess
d) Swachh Bharat Cess and Krishi Kalyan Cess

4) Which of the following statements is/are correct with respect to 'Clean Environment Cess'?

a) It is levied on coal and petroleum.
b) It is levied at the rate of Rs 400 per metric tonnes.
c) Both a and b
d) Neither a nor b

Answers

1) c, Collection from cess is required to be kept outside the purview of Consolidated Fund of India.
2) a
3) d, These are levied at the rate of 0.5% on all taxable services
4) b, Clean Environment Cess is levied on coal, lignite and peat

Reference : Business Line , The Economic Times