Question

How is the tax shared between government and states?

Answer 1

scheme for the distribution of revenues between the Union and the states is laid down in the articles 268 to 273 the proceeds of all the taxes lived by the state of pulley written by that concerned state himself while taxes in the union list may be in path allowed to the states Union list customs Corporation tax taxes on capital value of assets surcharge on Income Tax extra they are some taxes and duties in the union list like on sale or purchase of goods and services other the newspaper and Taxes on consignment of goods article 273 grants may be given by the union to the state of Assam Bihar Orissa West Bengal in the lieu of export duty of jute and jute products article 275 may be given to any state in needed as may be demat essentially firstly the share of states in the next revenues of the centre is evaluated for this purpose it is necessary SSD vertical gap between the Union and State the vertical graph is the difference between in normality assessed expenditure share and revenue capacities of the Union and the states secondly the horizontal sharing of the vertical gap between state financial commission has used equality offences as it to guiding principles while recommending inter shares of states and tax devotion criteria for the area capacity distance is equal to state average tax to comparible gsdp ratio of all states and discipline States on Revenue to state revenue expenditure