Cesses and Taxes 12/06/2019 – Posted in: Daily News
CESSES AND TAXES
For: Preliminary
Topic covers: Details about Cesses and Taxes
News Flash
The State government and urban local bodies (ULBs) have been collecting various cess and taxes as part of renewal of registration or as property tax. However, most taxes and cesses collected remain underutilised.
Understand Cess and Tax
All revenue received by the government by way of taxes—like income tax, central excise, customs and other receipts are credited into the Consolidated Fund, which has been constituted under Article 266 (1) of the Constitution of India. The funds so collected are then allocated to various purposes proposed in the Budget.
However, a cess is levied to develop only a particular service or sector, which is usually for social welfare, for instance: Swacch Bharat Cess and Krishi Kalyan Cess; which were levied on Service Tax, and have now been subsumed under Goods and Services Tax. Cess collected for a particular reason has to go towards the purpose for which it was charged. It cannot be used for, or diverted, to other purposes.
Source: Indian Express
You can follow us on LinkedIn and for more updates related to UPSC IAS Preparation, Like our Facebook Page and subscribe our Diligent IAS Youtube Channel