Political Science · Political Institutions in India
UGC NET June 2019 Political Science
Which of the following taxes are levied by the Union but are collected and appropriated by the States?
- I. Stamp duties
- II. Excise duties on medical and toilet preparations
- III. Sales tax
- IV. Land revenue
AI and II ✓ Correct
BII and III
CI, II and III
DIII and IV
Correct answer: (A) I and II — Stamp duties and excise duties on medical and toilet preparations are levied by the Union but collected and appropriated by the states, so the answer is statements one and two.
Explanation
★Stamp duties and excise duties on medical and toilet preparations are levied by the Union but collected and appropriated by the states, so the answer is statements one and two.
★This arrangement is provided under Article 268 of the Constitution.
★These taxes are imposed by the central government but are administered by the states in which they are collected.
★The revenue from these duties does not enter the Consolidated Fund of India but is assigned directly to the states.
★Sales tax and land revenue, by contrast, are levied as well as collected by the states themselves.
★This category of taxes reflects the financial relations between the centre and the states in Part XII of the Constitution.
★For NET, fix Article 268 as the duties levied by the Union but collected and appropriated by the states.
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