Which of the following taxes are levied by the Union but are collected and appropriated by the States?…
Under the classical framework of Article 268 of the Constitution of India, duties levied by the Union but collected and appropriated by the States comprised stamp duties…
Choose your answer
Which of the following taxes are levied by the Union but are collected and appropriated by the States?
(a) Stamp duties
(b) Excise duties on medical and toilet materials
(c) Sales tax
(d) Land revenue
Answer and explanation
Correct answer A
Under the classical framework of Article 268 of the Constitution of India, duties levied by the Union but collected and appropriated by the States comprised stamp duties mentioned in the Union List and duties of excise on medicinal and toilet preparations, whereas sales tax and land revenue were levied and collected by the States. Therefore, (a) and (b) only is correct.
Current law: The 101st Constitutional Amendment Act, 2016 (which introduced the Goods and Services Tax) omitted duties of excise on medicinal and toilet preparations from Article 268(1), leaving only stamp duties mentioned in the Union List under Article 268.
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UGC NET Political Science