The correct answer is option 2, which states that statements 1 and 2 are correct.

Let`s dissect each option:

Option 1: This option states that statement 1 (KKC is calculated in the same way as Service Tax is calculated) is correct, and statement 2 (The current rate of KKC is 0-50%) is incorrect. Regarding the first statement, KKC is indeed calculated in the same way as Service Tax, which is based on the value of the taxable service. However, this option is incorrect because it states that statement 2 is incorrect. The current rate of KKC is subject to change, but it is not 0-50%.

Option 2: This option states that both statement 1 and statement 2 are correct. As mentioned earlier, statement 1 is correct as KKC is calculated in the same way as Service Tax. Statement 2 is also correct as the rate of KKC can vary, but it is not limited to 0-50%.

Option 3: This option states that statement 2 (The current rate of KKC is 0-50%) and statement 3 (KKC is similar to the KKS) are correct. However, this option is incorrect as