The Centre earns money through several taxes, such as corporate tax, income tax, goods and services tax, Union excise duty and customs duty. A part of the taxes is shared with state governments.
Correct Option: D. A sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax is usually set as a percentage by the government charging the tax. Sales tax can be levied either by the Central or State Government or Central Sales tax department.
Typically, own tax revenue of states constitutes the largest share in the revenue receipts of states. … As seen in Figure 4, states such as Delhi, Maharashtra, Tamil Nadu, and Karnataka are less dependent on the centre and generate most (over 70%) of their revenue on their own.
Initially, the Constitution provided for the sharing of only two Central taxes with States. Article 270 permitted mandatory sharing of the net proceeds of income tax levied and collected by the Union with the States. … The shares of the States in Union excise duties were to be paid from the Consolidated Fund of India.
Under GST, CGST is a tax levied on Intra State supplies of both goods and services by the Central Government and will be governed by the CGST Act. … This implies that both the Central and the State governments will agree on combining their levies with an appropriate proportion for revenue sharing between them.
Which tax is not collected by central government?
An important restriction on this power is Article 265 of the Constitution which states that “No tax shall be levied or collected except by the authority of law”.
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Central government of India.
| SL. No. | Taxes as per Union List |
|---|---|
| 92B | Taxes on the consignment of goods in the course of inter-State trade or commerce |
Which state pays highest tax in India?
As the GST rollout has completed four years, an analysis shows that Maharashtra has highest number of GST payers at 15,131 followed by Karnataka, Tamil Nadu, Haryana, West Bengal and Telangana.
Taxes on income (other than agricultural income and corporation tax) shall be levied and collected by the centre but compulsorily distributed between the centre and the states in such manner as prescribed by the president on the recommendations of the Finance Commission.
Which state gets most money from center?
As per the notification, Uttar Pradesh got the highest amount of Rs8,255 crore, while Bihar, Madhya Pradesh, and Maharashtra received Rs4,632 crore, Rs3,630.6 crore, Rs2,824.5 crore, respectively.
Which is the richest state in India?
HYDERABAD: Claiming that Telangana is the richest state in the country, chief minister K Chandrasekhar Rao said the state’s per capita income is over Rs 2.2 lakh which is higher than the national per capita income (GDP) of Rs 1 lakh. He said Telangana stands next only to Karnataka’s GSDP in the country.
Which city is highest tax payer in India?
India’s economic hub Mumbai has topped the government’s direct tax collection targets as India sets region-wise goals for collection of personal income tax and corporate tax financial year 2020-21.
Which tax is collected and levied by the Center but assigned to states?
Article 268-A: Service Tax Levied by the Centre but Collected and Appropriated by the Centre and the States. Service tax is levied by the centre but makes part of divisible pool of proceeds.
Which tax is levied by the state government?
The taxation system in India empowers the state governments to levy income tax on agricultural income, professional tax, value added tax (VAT), state excise duty, land revenue and stamp duty.
What is the Article 279?
(1) The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and First Amendment) Act, 2016, by order, constitute a Council to be called the Goods and Services Tax Council.