Q. Consider the following pairs:
1. Taxes levied by the Union but collected and appropriated by the States Stamp Duties
2. Taxes levied, collected and retained by the states Taxes on lands and buildings
3. Taxes levied and collected by the Centre but assigned to the States Taxes on the sale or purchase of newspapers
4. Taxes levied and collected by the Centre but distributed between the Centre and states Tolls Taxes
How many of the above pairs are correctly matched?
Exp) Option b is the correct answer
The constitution provides for a detailed mechanism for distribution of tax revenues between the centre and the states.
Pair 1 is correctly matched: Taxes Levied by the Centre but Collected and Appropriated by the States (Article 268): This category includes the stamp duties on bills of exchange, cheques, promissory notes, policies of insurance, transfer of shares and others.
Pair 2 is correctly matched and 4 is incorrectly matched.: Taxes Levied and Collected and Retained by the States: They are enumerated in the state list. These includes taxes like land revenue; taxes on agricultural income; taxes on lands and buildings, taxes on vehicles; tolls taxes; taxes on professions, trades, callings and employments, and capitation taxes.
Pair 3 is incorrectly matched: Taxes Levied and Collected by the Centre but Assigned to the States (Article 269):
The following taxes fall under this category:
(i) Taxes on the sale or purchase of goods (other than newspapers) in the course of inter-state trade or commerce.
(ii) Taxes on the consignment of goods in the course of inter-state trade or commerce.
