OPSC OAS 2021 PrelimsPolityQuestion 13
Solved previous year question from the OPSC OAS/OCS 2021 Preliminary Examination (General Studies), with the official answer key and a detailed explanation.
Question
Which of the following taxes are levied and collected by Union but assigned to States?
(i) Corporation tax
(ii) Excise duty on tobacco
(iii) Duties in respect of succession to property other than Agriculture land
(iv) Stamp duties on Bills of Exchange
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Answer & Explanation
Correct answer: (B) (iii) only
- (i)Corporation Tax- It is levied and collected by the union Government and its net proceeds are assigned to the Union Government. It is shared with states only through Finance Commission devolution. Hence, Option (i) is incorrect
- (ii)Excise duty on tobacco-Under Article 246, the Union Government can levy excise duty on tobacco. Excise Duty levied on tobacco is collected by States and assigned to the Union Government. Hence, Option (ii) is incorrect.
- (iii)Duties in respect of succession to property other than Agriculture land- Under Article 269(1) of the Indian Constitution Duties in respect of succession to property other than Agriculture land will be levied and collected by Union but assigned to States. Hence, the (iii) Option is correct.
- (iv)Stamp duties on Bills of Exchange- Article 268 of the Indian Constitution says that Stamp Duties on Bills of exchange will be levied by the Union Government, but they are collected by State Government. Hence, Option (iv) is incorrect.
