Consider the following statements:

  1. Both the Parliament and the state legislature can levy taxes on subjects enumerated in the Concurrent List
  2. Both cess and surcharges are levied by the Centre, but distributed between the centre and the states

Which of the above statements is/are correct?

Answer: [A] Only 1

Second statement is incorrect because neither cess nor the surcharges are part of the divisible pool. 

This question is a part of GKToday's Integrated IAS General Studies Module