Constitution of India · Section Article 268
Duties levied by the Union but collected and appropriated by the States
Article 268 — Duties levied by the Union but collected and appropriated by the States
- Duties levied by the Union but collected and appropriated by the States.—(1) Such stamp duties 2*** as are mentioned in the Union List shall be levied by the Government of India but shall be collected—
- (a) in the case where such duties are leviable within any 3[Union territory], by the Government of India, and
- (b) in other cases, by the States within which such duties are respectively leviable. (2) The proceeds in any financial year of any such duty leviable within any State shall not form part of the Consolidated Fund of India, but shall be assigned to that State.
Plain English Summary
This article explains how certain taxes or duties (like stamp duties) that are legally imposed by the Central Government (Union) but are actually collected and used by the State Governments are managed. It specifies whether the central government collects them directly or if the respective state collects them.
Key Points
- Duties listed in the Union List are levied by the Government of India.
- Collection depends on the location: If the duty is within a Union territory, the Central Government collects it; otherwise, the State where the duty applies collects it.
- The money collected for these duties does not go into the Consolidated Fund of India but is assigned to the specific State.
Why It Matters
This article clarifies the financial responsibility: it shows that while the Union sets the rules for certain taxes, the actual collection and allocation of the revenue fall directly to the respective State governments.
Landmark Judgements
No major landmark judgements.