Taxes are Levied and Collected by the Union but Assigned to the States within which they are leviable.
Find out the correct option below:
I. Taxes on transactions in the stock exchange
II. Tax on the sale and purchase of newspapers including advertisements
III. Estate duty in respect of property other than agricultural land
IV. Stamp duty and duties of excise on the medical and toilet preparations
5Q:
Taxes are Levied and Collected by the Union but Assigned to the States within which they are leviable.
Find out the correct option below:
I. Taxes on transactions in the stock exchange
II. Tax on the sale and purchase of newspapers including advertisements
III. Estate duty in respect of property other than agricultural land
IV. Stamp duty and duties of excise on the medical and toilet preparations
- 1Only I & II are correctfalse
- 2I,II & III are correcttrue
- 3All are correctfalse
- 4Only IV & I are correctfalse
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Answer : 2. "I,II & III are correct"
Explanation :
There are taxes that are levied and collected by the Union, but the entire proceeds of which are assigned to the states, in the proportion determined by the Parliament.
These taxes include Succession and Estate duty; Terminal Taxes on goods and passengers; Taxes on railway freight and fares; Taxes on transactions in stock exchanges and futures markets; and Taxes on the sale and purchase of newspapers and advertisements therein.
Hence Taxes on Advertisements were levied and collected by the centre but their net proceeds are wholly transferred to states.
After 2017 this tax was subsumed under GST.