Center-State Financial Relations
Center State Financial Relations
Part 12 of the Constitution According to 268-281, a provision has been made about the financial relations between the Union and the States. The basic principles of the division of revenue between the Centre and the States are-
(1) Functionality
(2) Adequacy and
(3) Suitability
There are two characteristics of financial relations between the Union and the States in India.
(1) Division of powers of taxation between the Union and the States.
(2) Division of revenue between the Union and the States
(1) Division of Powers of Taxation
Which of the following are correct : (a) Article 263 prohibits the imposition of tax, not the imposition of Fees. (b) The Central Government has the right to levy tax on the subjects mentioned in the Union List. | |||
| Right Option : B | |||
| View Explanation | |||
According to Article 268-281, a provision has been made about the _______________________ relations between the Union and the States. | |||
| Right Option : C | |||
| View Explanation | |||
Which of the following are correct : (a) The basic principles of the division of revenue between the Centre and the States are- functionality, adequacy and suitability. (b) According to Article 262, tax shall be imposed or collected only by the authority of law or otherwise not. (c) States have the right to levy taxes on the subjects mentioned in the State List. | |||
| Right Option : C | |||
| View Explanation | |||
Students / Parents Reviews [20]
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