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Consider the following statements and identify the right ones.
i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.
ii. The constitution also provides for transferring certain tax revenues from union list to states.
i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.
ii. The constitution also provides for transferring certain tax revenues from union list to states.
- a)i only
- b)ii only
- c)both
- d)none
Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements and identify the right ones.i. Centr...
Explanation:
The correct answer is option 'B' - ii only. Let's understand why.
Statement i:
Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.
This statement is incorrect. The central government in India does have the power to impose taxes that are not mentioned in the state or concurrent list. The Constitution of India provides for three lists - the Union List, the State List, and the Concurrent List. The Union List consists of subjects on which only the central government can make laws, and it includes taxes such as income tax, customs duty, and central excise duty. The State List consists of subjects on which only the state governments can make laws, and it includes taxes such as sales tax and stamp duty. The Concurrent List consists of subjects on which both the central and state governments can make laws, and it includes taxes such as service tax and value-added tax (VAT). Therefore, the central government has the power to impose taxes not mentioned in the state or concurrent list.
Statement ii:
The constitution also provides for transferring certain tax revenues from union list to states.
This statement is correct. The Constitution of India provides for the distribution of tax revenues between the central and state governments. Article 270 of the Constitution deals with the distribution of taxes between the Union and the States. It allows for the transfer of certain tax revenues from the Union List to the states. These tax revenues are referred to as "grants-in-aid" and are meant to supplement the resources of the states. The grants-in-aid are made by the central government to the states based on the recommendations of the Finance Commission. The Finance Commission is a constitutional body that is appointed every five years to make recommendations on the distribution of tax revenues between the Union and the states. Therefore, the constitution does provide for transferring certain tax revenues from the Union List to the states.
In conclusion, the correct statements are ii only.
The correct answer is option 'B' - ii only. Let's understand why.
Statement i:
Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.
This statement is incorrect. The central government in India does have the power to impose taxes that are not mentioned in the state or concurrent list. The Constitution of India provides for three lists - the Union List, the State List, and the Concurrent List. The Union List consists of subjects on which only the central government can make laws, and it includes taxes such as income tax, customs duty, and central excise duty. The State List consists of subjects on which only the state governments can make laws, and it includes taxes such as sales tax and stamp duty. The Concurrent List consists of subjects on which both the central and state governments can make laws, and it includes taxes such as service tax and value-added tax (VAT). Therefore, the central government has the power to impose taxes not mentioned in the state or concurrent list.
Statement ii:
The constitution also provides for transferring certain tax revenues from union list to states.
This statement is correct. The Constitution of India provides for the distribution of tax revenues between the central and state governments. Article 270 of the Constitution deals with the distribution of taxes between the Union and the States. It allows for the transfer of certain tax revenues from the Union List to the states. These tax revenues are referred to as "grants-in-aid" and are meant to supplement the resources of the states. The grants-in-aid are made by the central government to the states based on the recommendations of the Finance Commission. The Finance Commission is a constitutional body that is appointed every five years to make recommendations on the distribution of tax revenues between the Union and the states. Therefore, the constitution does provide for transferring certain tax revenues from the Union List to the states.
In conclusion, the correct statements are ii only.
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Consider the following statements and identify the right ones.i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.ii. The constitution also provides for transferring certain tax revenues from union list to states.a)i onlyb)ii onlyc)bothd)noneCorrect answer is option 'B'. Can you explain this answer?
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