Q. Which of the following type of taxes are imposed and collected by the Centre but the proceeds are assigned to the states?
1. Stamp duties on promissory notes
2. Estate duty in respect of property other than agricultural land
3. Stamp duties on bills of exchange
4. Taxes on railway fares and freights
Select the correct answer using the codes given below:
Exp) Option b is the correct answer
Article 268 to 293 in Part XII of the Constitution deal with Centre-state financial relations. Article 269 deals with certain taxes that are levied and collected by the central government but are assigned to the state government.
Option 2 and 4 are correct: Succession Duty, Central Sales Tax, Estate Duty, Taxes on railway fares and freight, Estate duty in respect of property other than agricultural land are taxes that are imposed and collected by the Centre but are assigned to the states. These taxes also do not come under Consolidation fund of India.
Option 1 and 3 are incorrect: Stamp duties on bills of exchange, cheques, promissory notes, policies of insurance, transfer of shares are the taxes that levied by the centre but collected and appropriated by the states.
