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Which amidst the following taxes collected by the Union is not mandated to be assigned to the states?                    
  • a)
    Terminal taxes on goods or passengers carried by railway, sea or air.    
  • b)
    Taxes on railway fares and freights    
  • c)
    Taxes on consignment of goods    
  • d)
    Service tax
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which amidst the following taxes collected by the Union is not mandate...


Service tax is not mandated to be assigned to the states for collection.

Service Tax:
- Service tax is a tax levied by the Central Government on services provided or agreed to be provided excluding services covered under the negative list.
- It is not mandated to be assigned to the states as it is collected and appropriated by the Central Government.
- Unlike other taxes like terminal taxes on goods or passengers carried by railway, sea or air, taxes on railway fares and freights, and taxes on consignment of goods, which are assigned to the states for collection.

Other Taxes:
- Terminal taxes on goods or passengers carried by railway, sea or air, taxes on railway fares and freights, and taxes on consignment of goods are collected by the Union but are mandatorily assigned to the states for collection and appropriation.
- These taxes are shared between the Union and the states as per the recommendations of the Finance Commission.

In conclusion, while taxes like terminal taxes on goods or passengers carried by railway, sea or air, taxes on railway fares and freights, and taxes on consignment of goods are assigned to the states for collection, service tax is solely collected and appropriated by the Central Government without being assigned to the states.
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Which amidst the following taxes collected by the Union is not mandate...
As per Article 268-A of the Constitution of India, Service tax is levied by Union and collected and appropriated by the Union and States. Service tax is a part of Central Excise in India. It is a tax levied on services provided in India, except the State of Jammu and Kashmir. As per article 269, the taxes levied and collected by the union but assigned to the States are: duties in respect of succession to property other than agricultural land; estate duty in respect of property other than agricultural land; terminal taxes on goods or passengers carried by railway, sea or air; taxes on railway fares and freights; taxes on the sale or purchase of newspapers and on advertisements published therein; taxes on the consignment of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter State trade or commerce, etc.
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Which amidst the following taxes collected by the Union is not mandated to be assigned to the states? a)Terminal taxes on goods or passengers carried by railway, sea or air. b)Taxes on railway fares and freights c)Taxes on consignment of goods d)Service taxCorrect answer is option 'D'. Can you explain this answer?
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Which amidst the following taxes collected by the Union is not mandated to be assigned to the states? a)Terminal taxes on goods or passengers carried by railway, sea or air. b)Taxes on railway fares and freights c)Taxes on consignment of goods d)Service taxCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which amidst the following taxes collected by the Union is not mandated to be assigned to the states? a)Terminal taxes on goods or passengers carried by railway, sea or air. b)Taxes on railway fares and freights c)Taxes on consignment of goods d)Service taxCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which amidst the following taxes collected by the Union is not mandated to be assigned to the states? a)Terminal taxes on goods or passengers carried by railway, sea or air. b)Taxes on railway fares and freights c)Taxes on consignment of goods d)Service taxCorrect answer is option 'D'. Can you explain this answer?.
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