Articles related to Centre-State financial relations
Q. Match the following articles with their provisions correctly.| Article | Provision |
|---|
| A. 268 | 1. Surcharge on certain taxes and duties for purposes of the centre. |
| B. 270 | 2. Service tax levied by the centre. |
| C. 271 | 3. Taxes levied by the centre but collected and appropriated by the states. |
| D. 268-A | 4. Taxes levied and collected by the centre but distributed between the centre and the states. |
- Published on 24 Feb 17a. A-1, B-2, C-3, D-4
b. A-1, B-3, C-2, D-4
c. A-3, B-4, C-1, D-2
d. A-2, B-1, C-4, D-3
ANSWER: A-3, B-4, C-1, D-2
- Article 268 - Taxes levied by the centre but collected and appropriated by the states.
- Stamp duties on bills of exchange, cheques, promissory notes, policies of insurance, transfer of shares, etc.
- Duties of excise on medicinal and toilet preparations (having alcohol and narcotics in them).
- The proceeds of these duties do not form a part of the Consolidated Fund of India, but are assigned to that state.
Article 268-A - Service tax levied by the centre but collected and appropriated by the centre and the states -
- Principles of their collection and appropriation are formulated by the Parliament.
Article 269 - Taxes levied and collected by the centre but assigned to the states -
- Taxes on the sale or purchase of goods (other than newspapers) and consignment of goods during inter-state trade or commerce.
- The net proceeds of these are not part of the Consolidated Fund of India.
Article 270 - Taxes levied and collected by the centre but distributed between the centre and the states -
All taxes and duties in the Union List except -
(a) Duties and taxes mentioned in Articles 268, 268-A and 269;
(b) Surcharge on taxes and duties - Article 271 and
(c) Any cess levied for specific purposes.
- President on the recommendation of the Finance Commission determines the manner of distribution of the net proceeds of these.
Article 271 - Surcharge on certain taxes and duties for purposes of the centre -
- Surcharges on taxes and duties in Articles 269 and 270 can be levied by Parliament.
- Centre gets these entire proceeds. States get no share of these.
- Taxes Levied and Collected and Retained by the States - Taxes mentioned in State list and belonging to the states exclusively. They are 20 in number.
