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PART XII
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FINANCE, PROPERTY, CONTRACTS AND SUITS
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CHAPTER I.—FINANCE
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General
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264. Interpretation.—In this Part, “Finance Commission” means a
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Finance Commission constituted under article 280.
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265. Taxes not to be imposed save by authority of law.—No tax shall
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be levied or collected except by authority of law.
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266. Consolidated Funds and public accounts of India and of the
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States.—(1) Subject to the provisions of article 267 and to the provisions of
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this Chapter with respect to the assignment of the whole or part of the net
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proceeds of certain taxes and duties to States, all revenues received by the
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Government of India, all loans raised by that Government by the issue of
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treasury bills, loans or ways and means advances and all moneys received by
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that Government in repayment of loans shall form one consolidated fund to be
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entitled “the Consolidated Fund of India”, and all revenues received by the
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Government of a State, all loans raised by that Government by the issue of
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treasury bills, loans or ways and means advances and all moneys received by
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that Government in repayment of loans shall form one consolidated fund to be
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entitled “the Consolidated Fund of the State”.
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(2) All other public moneys received by or on behalf of the Government
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of India or the Government of a State shall be credited to the public account of
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India or the public account of the State, as the case may be.
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(3) No moneys out of the Consolidated Fund of India or the
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Consolidated Fund of a State shall be appropriated except in accordance with
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law and for the purposes and in the manner provided in this Constitution.
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267. Contingency Fund.—(1) Parliament may by law establish a
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Contingency Fund in the nature of an imprest to be entitled “the Contingency
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Fund of India” into which shall be paid from time to time such sums as may be
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determined by such law, and the said Fund shall be placed at the disposal of the
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President to enable advances to be made by him out of such Fund for the
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purposes of meeting unforeseen expenditure pending authorisation of such
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expenditure by Parliament by law under article 115 or article 116.
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133
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134
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THE CONSTITUTION OF INDIA
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(2) The Legislature of a State may by law establish a Contingency Fund in
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the nature of an imprest to be entitled “the Contingency Fund of the State”
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into
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which shall be paid from time to time such sums as may be determined by such
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law, and the said Fund shall be placed at the disposal of the Governor of the St
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ate
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to enable advances to be made by him out of such Fund for the purposes of
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meeting unforeseen expenditure pending authorisation of such expenditure by the
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Legislature of the State by law under article 205 or article 206.
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Distribution of Revenues between the Union and the States
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268. Duties levied by the Union but collected and appropriated by
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the States.—(1) Such stamp duties and such duties of excise on medicinal and
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toilet preparations as are mentioned in the Union List shall be levied by the
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Government of India but shall be collected—
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(a) in the case where such duties are leviable within any Union
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territory, by the Government of India, and
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(b) in other cases, by the States within which such duties are
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respectively leviable.
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(2) The proceeds in any financial year of any such duty leviable within
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any State shall not form part of the Consolidated Fund of India, but shall be
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assigned to that State.
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269. Taxes levied and collected by the Union but assigned to the
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States.— (1) Taxes on the sale or purchase of goods and taxes on the
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consignment of goods shall be levied and collected by the Government of India
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but shall be assigned and shall be deemed to have been assigned to the States
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on or after the 1st day of April, 1996 in the manner provided in clause (2).
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Explanation.—For the purposes of this clause,—
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(a) the expression "taxes on the sale or purchase of goods" shall
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mean taxes on sale or purchase of goods other than newspapers, where
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such sale or purchase takes place in the course of inter-State trade or
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commerce;
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(b) the expression "taxes on the consignment of goods" shall mean
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taxes on the consignment of goods (whether the consignment is to the
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person making it or to any other person), where such consignment takes
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place in the course of inter-State trade or commerce.
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135
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THE CONSTITUTION OF INDIA
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(2) The net proceeds in any financial year of any such tax, except in so
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far as those proceeds represent proceeds attributable to Union territories, shal
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not form part of the Consolidated Fund of India, but shall be assigned to the
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States within which that tax is leviable in that year, and shall be distributed
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among those States in accordance with such principles of distribution as may be
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formulated by Parliament by law.
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(3) Parliament may by law formulate principles for determining when a
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sale or purchase of, or consignment of, goods takes place in the course of inter
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State trade or commerce.
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270. Taxes levied and distributed between the Union and the
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States.—(1) All taxes and duties referred to in the Union List, except the dut
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ies
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and taxes referred to in articles 268 and 269, respectively, surcharge on taxes
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and duties referred to in article 271 and any cess levied for specific purposes
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under any law made by Parliament shall be levied and collected by the
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Government of India and shall be distributed between the Union and the States
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in the manner provided in clause (2).
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(2) Such percentage, as may be prescribed, of the net proceeds of any
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such tax or duty in any financial year shall not form part of the Consolidated
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Fund of India, but shall be assigned to the States within which that tax or duty
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is leviable in that year, and shall be distributed among those States in such
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manner and from such time as may be prescribed in the manner provided in
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clause (3).
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(3) In this article, "prescribed" means, —
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(i) until a Finance Commission has been constituted, prescribed by
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the President by order, and
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(ii) after a Finance Commission has been constituted, prescribed by
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the President by order after considering the recommendations of the
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Finance Commission.
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271. Surcharge on certain duties and taxes for purposes of the
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Union.—Notwithstanding anything in articles 269 and 270, Parliament may at
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any time increase any of the duties or taxes referred to in those articles by a
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surcharge for purposes of the Union and the whole proceeds of any such
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surcharge shall form part of the Consolidated Fund of India.
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272. [Taxes which are levied and collected by the Union and may be
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distributed between the Union and the States.]— Omitted. by the Constitution
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(Eightieth Amendment) Act, 2000, s. 4.
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136
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THE CONSTITUTION OF INDIA
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273. Grants in lieu of export duty on jute and jute products.—(1)
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There shall be charged on the Consolidated Fund of India in each year as
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grants-in-aid of the revenues of the States of Assam, Bihar, Odisha and West
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Bengal, in lieu of assignment of any share of the net proceeds in each year of
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export duty on jute and jute products to those States, such sums as may be
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prescribed.
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(2) The sums so prescribed shall continue to be charged on the
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Consolidated Fund of India so long as any export duty on jute or jute products
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continues to be levied by the Government of India or until the expiration of ten
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years from the commencement of this Constitution whichever is earlier.
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(3) In this article, the expression “prescribed” has the same meaning as
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in article 270.
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274. Prior recommendation of President required to Bills affecting
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taxation in which States are interested.—(1) No Bill or amendment which
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imposes or varies any tax or duty in which States are interested, or which varie
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s
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the meaning of the expression “agricultural income” as defined for the purpo
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ses
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of the enactments relating to Indian income-tax, or which affects the principles
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on which under any of the foregoing provisions of this Chapter moneys are or
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may be distributable to States, or which imposes any such surcharge for the
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purposes of the Union as is mentioned in the foregoing provisions of this
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Chapter, shall be introduced or moved in either House of Parliament except on
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the recommendation of the President.
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(2) In this article, the expression “tax or duty in which States are
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interested” means—
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(a) a tax or duty the whole or part of the net proceeds whereof are
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assigned to any State; or
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(b) a tax or duty by reference to the net proceeds whereof sums
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are for the time being payable out of the Consolidated Fund of India to
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any State.
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275. Grants from the Union to certain States.—(1) Such sums as
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Parliament may by law provide shall be charged on the Consolidated Fund of
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India in each year as grants-in-aid of the revenues of such States as Parliament
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may determine to be in need of assistance, and different sums may be fixed for
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different States:
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137
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THE CONSTITUTION OF INDIA
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Provided that there shall be paid out of the Consolidated Fund of India as
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grants-in-aid of the revenues of a State such capital and recurring sums as may
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be necessary to enable that State to meet the costs of such schemes of
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development as may be undertaken by the State with the approval of the
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Government of India for the purpose of promoting the welfare of the Scheduled
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Tribes in that State or raising the level of administration of the Scheduled Are
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as
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therein to that of the administration of the rest of the areas of that State:
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Provided further that there shall be paid out of the Consolidated Fund of
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India as grants-in-aid of the revenues of the State of Assam sums, capital and
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recurring, equivalent to—
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(a) the average excess of expenditure over the revenues during the
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two years immediately preceding the commencement of this Constitution
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in respect of the administration of the tribal areas specified in Part I of
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the table appended to paragraph 20 of the Sixth Schedule; and
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(b) the costs of such schemes of development as may be
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undertaken by that State with the approval of the Government of India
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for the purpose of raising the level of administration of the said areas to
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that of the administration of the rest of the areas of that State.
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(1A) On and from the formation of the autonomous State under article
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244A,—
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(i) any sums payable under clause (a) of the second proviso to
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clause (1) shall, if the autonomous State comprises all the tribal areas
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referred to therein, be paid to the autonomous State, and, if the
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autonomous State comprises only some of those tribal areas, be
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apportioned between the State of Assam and the autonomous State as the
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President may, by order, specify;
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(ii) there shall be paid out of the Consolidated Fund of India as
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grants-in-aid of the revenues of the autonomous State sums, capital and
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recurring, equivalent to the costs of such schemes of development as
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may be undertaken by the autonomous State with the approval of the
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Government of India for the purpose of raising the level of
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administration of that State to that of the administration of the rest of the
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State of Assam.
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(2) Until provision is made by Parliament under clause (1), the powers
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conferred on Parliament under that clause shall be exercisable by the President
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by order and any order made by the President under this clause shall have effect
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subject to any provision so made by Parliament:
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Provided that after a Finance Commission has been constituted no order
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shall be made under this clause by the President except after considering the
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recommendations of the Finance Commission.
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138
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THE CONSTITUTION OF INDIA
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276. Taxes on professions, trades, callings and employments.—(1)
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Notwithstanding anything in article 246, no law of the Legislature of a State re
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lating
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to taxes for the benefit of the State or of a municipality, district board, loca
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l board or
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other local authority therein in respect of professions, trades, callings or
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employments shall be invalid on the ground that it relates to a tax on income.
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(2) The total amount payable in respect of any one person to the State or
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to any one municipality, district board, local board or other local authority in
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the State by way of taxes on professions, trades, callings and employments
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shall not exceed two thousand and five hundred rupees per annum.
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*
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*
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*
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*
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(3) The power of the Legislature of a State to make laws as aforesaid
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with respect to taxes on professions, trades, callings and employments shall not
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be construed as limiting in any way the power of Parliament to make laws with
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respect to taxes on income accruing from or arising out of professions, trades,
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callings and employments.
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277. Savings.—Any taxes, duties, cesses or fees which, immediately
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before the commencement of this Constitution, were being lawfully levied by
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the Government of any State or by any municipality or other local authority or
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body for the purposes of the State, municipality, district or other local area
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may, notwithstanding that those taxes, duties, cesses or fees are mentioned in
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the Union List, continue to be levied and to be applied to the same purposes
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until provision to the contrary is made by Parliament by law.
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278. [Agreement with States in Part B of the First Schedule with
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regard to certain financial matters.] Rep. by the Constitution (Seventh
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Amendment) Act, 1956, s. 29 and Sch.
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279. Calculation of “net proceeds”, etc.—(1) In the foregoing
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provisions of this Chapter, “net proceeds” means in relation to any tax or d
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uty
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the proceeds thereof reduced by the cost of collection, and for the purposes of
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those provisions the net proceeds of any tax or duty, or of any part of any tax
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or
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duty, in or attributable to any area shall be ascertained and certified by the
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Comptroller and Auditor-General of India, whose certificate shall be final.
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(2) Subject as aforesaid, and to any other express provision of this
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Chapter, a law made by Parliament or an order of the President may, in any
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case where under this Part the proceeds of any duty or tax are, or may be,
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assigned to any State, provide for the manner in which the proceeds are to be
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calculated, for the time from or at which and the manner in which any
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payments are to be made, for the making of adjustments between one financial
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year and another, and for any other incidental or ancillary matters.
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139
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THE CONSTITUTION OF INDIA
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280. Finance Commission.—(1) The President shall, within two years
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from the commencement of this Constitution and thereafter at the expiration of
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every fifth year or at such earlier time as the President considers necessary, b
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y
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order constitute a Finance Commission which shall consist of a Chairman and
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four other members to be appointed by the President.
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(2) Parliament may by law determine the qualifications which shall be
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requisite for appointment as members of the Commission and the manner in
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which they shall be selected.
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(3) It shall be the duty of the Commission to make recommendations to
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the President as to—
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(a) the distribution between the Union and the States of the net
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proceeds of taxes which are to be, or may be, divided between them
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under this Chapter and the allocation between the States of the respective
|
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|
|
|
shares of such proceeds;
|
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|
|
|
(b) the principles which should govern the grants-in-aid of the
|
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|
|
|
revenues of the States out of the Consolidated Fund of India;
|
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|
|
|
(bb) the measures needed to augment the Consolidated Fund of a
|
|
|
|
|
State to supplement the resources of the Panchayats in the State on the basis
|
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|
|
|
of the recommendations made by the Finance Commission of the State;
|
2015-04-23 07:30:14 +00:00
|
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|
(c) the measures needed to augment the Consolidated Fund of a
|
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|
|
|
State to supplement the resources of the Municipalities in the State on
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|
|
the basis of the recommendations made by the Finance Commission of
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|
the State;
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|
(d) any other matter referred to the Commission by the President
|
2015-04-23 07:29:52 +00:00
|
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|
|
in the interests of sound finance.
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|
|
(4) The Commission shall determine their procedure and shall have such
|
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|
|
|
powers in the performance of their functions as Parliament may by law confer
|
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|
|
on them.
|
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|
|
281. Recommendations of the Finance Commission.—The President
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|
|
|
shall cause every recommendation made by the Finance Commission under the
|
|
|
|
|
provisions of this Constitution together with an explanatory memorandum as to
|
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|
|
the action taken thereon to be laid before each House of Parliament.
|
|
|
|
|
Miscellaneous Financial Provisions
|
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|
282. Expenditure defrayable by the Union or a State out of its
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|
|
|
revenues.—The Union or a State may make any grants for any public purpose,
|
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|
|
|
notwithstanding that the purpose is not one with respect to which Parliament or
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|
|
|
the Legislature of the State, as the case may be, may make laws.
|
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|
|
|
|
|
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|
140
|
|
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|
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|
|
|
|
|
THE CONSTITUTION OF INDIA
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|
283. Custody, etc., of Consolidated Funds, Contingency Funds and
|
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|
|
moneys credited to the public accounts.—(1) The custody of the
|
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|
|
|
Consolidated Fund of India and the Contingency Fund of India, the payment of
|
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|
|
|
moneys into such Funds, the withdrawal of moneys therefrom, the custody of
|
|
|
|
|
public moneys other than those credited to such Funds received by or on behalf
|
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|
|
|
of the Government of India, their payment into the public account of India and
|
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|
|
|
the withdrawal of moneys from such account and all other matters connected
|
|
|
|
|
with or ancillary to matters aforesaid shall be regulated by law made by
|
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|
|
Parliament, and, until provision in that behalf is so made, shall be regulated b
|
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|
|
|
y
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|
|
rules made by the President.
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|
(2) The custody of the Consolidated Fund of a State and the
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|
|
Contingency Fund of a State, the payment of moneys into such Funds, the
|
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|
|
|
withdrawal of moneys therefrom, the custody of public moneys other than
|
|
|
|
|
those credited to such Funds received by or on behalf of the Government of the
|
|
|
|
|
State, their payment into the public account of the State and the withdrawal of
|
|
|
|
|
moneys from such account and all other matters connected with or ancillary to
|
|
|
|
|
matters aforesaid shall be regulated by law made by the Legislature of the
|
|
|
|
|
State, and, until provision in that behalf is so made, shall be regulated by rul
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|
|
|
es
|
2015-04-23 07:29:54 +00:00
|
|
|
|
made by the Governor of the State.
|
2015-04-23 07:29:52 +00:00
|
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|
|
284. Custody of suitors' deposits and other moneys received by
|
|
|
|
|
public servants and courts.—All moneys received by or deposited with—
|
|
|
|
|
(a) any officer employed in connection with the affairs of the
|
|
|
|
|
Union or of a State in his capacity as such, other than revenues or
|
|
|
|
|
public moneys raised or received by the Government of India or the
|
|
|
|
|
Government of the State, as the case may be, or
|
|
|
|
|
(b) any court within the territory of India to the credit of any
|
|
|
|
|
cause, matter, account or persons,
|
|
|
|
|
shall be paid into the public account of India or the public account of State, a
|
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|
|
|
s
|
|
|
|
|
the case may be.
|
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|
|
285. Exemption of property of the Union from State taxation.—(1)
|
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|
|
|
The property of the Union shall, save in so far as Parliament may by law
|
|
|
|
|
otherwise provide, be exempt from all taxes imposed by a State or by any
|
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|
|
|
authority within a State.
|
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|
|
|
(2) Nothing in clause (1) shall, until Parliament by law otherwise
|
|
|
|
|
provides, prevent any authority within a State from levying any tax on any
|
|
|
|
|
property of the Union to which such property was immediately before the
|
|
|
|
|
commencement of this Constitution liable or treated as liable, so long as that
|
|
|
|
|
tax continues to be levied in that State.
|
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|
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|
|
|
|
|
141
|
|
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|
|
|
|
|
|
|
THE CONSTITUTION OF INDIA
|
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|
|
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|
|
286. Restrictions as to imposition of tax on the sale or purchase of
|
|
|
|
|
goods.—(1) No law of a State shall impose, or authorise the imposition of, a
|
|
|
|
|
tax on the sale or purchase of goods where such sale or purchase takes place—
|
|
|
|
|
(a) outside the State; or
|
|
|
|
|
(b) in the course of the import of the goods into, or export of the
|
|
|
|
|
goods out of, the territory of India.
|
2015-04-23 07:29:53 +00:00
|
|
|
|
*
|
|
|
|
|
*
|
|
|
|
|
*
|
|
|
|
|
*
|
|
|
|
|
(2) Parliament may by law formulate principles for determining when a
|
|
|
|
|
sale or purchase of goods takes place in any of the ways mentioned in clause (1)
|
|
|
|
|
.
|
2015-04-23 07:30:05 +00:00
|
|
|
|
(3) Any law of a State shall, in so far as it imposes, or authorises the
|
|
|
|
|
imposition of,—
|
|
|
|
|
(a) a tax on the sale or purchase of goods declared by Parliament
|
|
|
|
|
by law to be of special importance in inter-State trade or commerce; or
|
|
|
|
|
(b) a tax on the sale or purchase of goods, being a tax of the
|
|
|
|
|
nature referred to in sub-clause (b), sub-clause (c) or sub-clause (d) of
|
|
|
|
|
clause (29A) of article 366,
|
|
|
|
|
be subject to such restrictions and conditions in regard to the system of levy,
|
|
|
|
|
rates and other incidents of the tax as Parliament may by law specify.
|
2015-04-23 07:29:52 +00:00
|
|
|
|
287. Exemption from taxes on electricity.—Save in so far as
|
|
|
|
|
Parliament may by law otherwise provide, no law of a State shall impose, or
|
|
|
|
|
authorise the imposition of, a tax on the consumption or sale of electricity
|
|
|
|
|
(whether produced by a Government or other persons) which is—
|
|
|
|
|
(a) consumed by the Government of India, or sold to the
|
|
|
|
|
Government of India for consumption by that Government; or
|
|
|
|
|
(b) consumed in the construction, maintenance or operation of any
|
|
|
|
|
railway by the Government of India or a railway company operating that
|
|
|
|
|
railway, or sold to that Government or any such railway company for
|
|
|
|
|
consumption in the construction, maintenance or operation of any
|
|
|
|
|
railway,
|
|
|
|
|
and any such law imposing, or authorising the imposition of, a tax on the sale
|
|
|
|
|
of electricity shall secure that the price of electricity sold to the Government
|
|
|
|
|
of
|
|
|
|
|
India for consumption by that Government, or to any such railway company as
|
|
|
|
|
aforesaid for consumption in the construction, maintenance or operation of any
|
|
|
|
|
railway, shall be less by the amount of the tax than the price charged to other
|
|
|
|
|
consumers of a substantial quantity of electricity.
|
|
|
|
|
|
|
|
|
|
142
|
|
|
|
|
|
|
|
|
|
THE CONSTITUTION OF INDIA
|
|
|
|
|
|
|
|
|
|
288. Exemption from taxation by States in respect of water or
|
|
|
|
|
electricity in certain cases.—(1) Save in so far as the President may by order
|
|
|
|
|
otherwise provide, no law of a State in force immediately before the
|
|
|
|
|
commencement of this Constitution shall impose, or authorise the imposition
|
|
|
|
|
of, a tax in respect of any water or electricity stored, generated, consumed,
|
|
|
|
|
distributed or sold by any authority established by any existing law or any law
|
|
|
|
|
made by Parliament for regulating or developing any inter-State river or riverva
|
|
|
|
|
lley.
|
|
|
|
|
Explanation.—The expression “law of a State in force” in this clause
|
|
|
|
|
shall include a law of a State passed or made before the commencement of this
|
|
|
|
|
Constitution and not previously repealed, notwithstanding that it or parts of it
|
|
|
|
|
may not be then in operation either at all or in particular areas.
|
|
|
|
|
(2) The Legislature of a State may by law impose, or authorise the
|
|
|
|
|
imposition of, any such tax as is mentioned in clause (1), but no such law shall
|
|
|
|
|
have any effect unless it has, after having been reserved for the consideration
|
|
|
|
|
of
|
|
|
|
|
the President, received his assent; and if any such law provides for the fixatio
|
|
|
|
|
n
|
|
|
|
|
of the rates and other incidents of such tax by means of rules or orders to be
|
|
|
|
|
made under the law by any authority, the law shall provide for the previous
|
|
|
|
|
consent of the President being obtained to the making of any such rule or order.
|
|
|
|
|
289. Exemption of property and income of a State from Union
|
|
|
|
|
taxation.—(1) The property and income of a State shall be exempt from Union
|
|
|
|
|
taxation.
|
|
|
|
|
(2) Nothing in clause (1) shall prevent the Union from imposing, or
|
|
|
|
|
authorising the imposition of, any tax to such extent, if any, as Parliament may
|
|
|
|
|
by law provide in respect of a trade or business of any kind carried on by, or o
|
|
|
|
|
n
|
|
|
|
|
behalf of, the Government of a State, or any operations connected therewith, or
|
|
|
|
|
any property used or occupied for the purposes of such trade or business, or any
|
|
|
|
|
income accruing or arising in connection therewith.
|
|
|
|
|
(3) Nothing in clause (2) shall apply to any trade or business, or to any
|
|
|
|
|
class of trade or business, which Parliament may by law declare to be incidental
|
|
|
|
|
to the ordinary functions of Government.
|
|
|
|
|
|
|
|
|
|
143
|
|
|
|
|
|
|
|
|
|
THE CONSTITUTION OF INDIA
|
|
|
|
|
|
|
|
|
|
290. Adjustment in respect of certain expenses and pensions.—
|
|
|
|
|
Where under the provisions of this Constitution the expenses of any court or
|
|
|
|
|
Commission, or the pension payable to or in respect of a person who has served
|
|
|
|
|
before the commencement of this Constitution under the Crown in India or
|
|
|
|
|
after such commencement in connection with the affairs of the Union or of a
|
|
|
|
|
State, are charged on the Consolidated Fund of India or the Consolidated Fund
|
|
|
|
|
of a State, then, if—
|
|
|
|
|
(a) in the case of a charge on the Consolidated Fund of India, the
|
|
|
|
|
court or Commission serves any of the separate needs of a State, or the
|
|
|
|
|
person has served wholly or in part in connection with the affairs of a
|
|
|
|
|
State; or
|
|
|
|
|
(b) in the case of a charge on the Consolidated Fund of a State, the
|
|
|
|
|
court or Commission serves any of the separate needs of the Union or
|
|
|
|
|
another State, or the person has served wholly or in part in connection
|
|
|
|
|
with the affairs of the Union or another State,
|
|
|
|
|
there shall be charged on and paid out of the Consolidated Fund of the State or,
|
|
|
|
|
as the case may be, the Consolidated Fund of India or the Consolidated Fund of
|
|
|
|
|
the other State, such contribution in respect of the expenses or pension as may
|
|
|
|
|
be agreed, or as may in default of agreement be determined by an arbitrator to
|
|
|
|
|
be appointed by the Chief Justice of India.
|
2015-04-23 07:29:54 +00:00
|
|
|
|
290A. Annual payment to certain Devaswom Funds.—A sum of
|
|
|
|
|
forty-six lakhs and fifty thousand rupees shall be charged on, and paid out of,
|
|
|
|
|
the Consolidated Fund of the State of Kerala every year to the Travancore
|
|
|
|
|
Devaswom Fund; and a sum of thirteen lakhs and fifty thousand rupees shall be
|
|
|
|
|
charged on, and paid out of, the Consolidated Fund of the State of Tamil Nadu
|
|
|
|
|
every year to the Devaswom Fund established in that State for the maintenance
|
|
|
|
|
of Hindu temples and shrines in the territories transferred to that State on the
|
|
|
|
|
1st day of November, 1956, from the State of Travancore-Cochin.
|
2015-04-23 07:29:59 +00:00
|
|
|
|
291. [Privy purse sums of Rulers.] Rep. by the Constitution (Twenty-sixth
|
|
|
|
|
Amendment) Act, 197l, s. 2.
|
2015-04-23 07:29:52 +00:00
|
|
|
|
CHAPTER II.—BORROWING
|
|
|
|
|
292. Borrowing by the Government of India.—The executive power
|
|
|
|
|
of the Union extends to borrowing upon the security of the Consolidated Fund
|
|
|
|
|
of India within such limits, if any, as may from time to time be fixed by
|
|
|
|
|
Parliament by law and to the giving of guarantees within such limits, if any, as
|
|
|
|
|
may be so fixed.
|
|
|
|
|
293. Borrowing by States.—(1) Subject to the provisions of this article,
|
|
|
|
|
the executive power of a State extends to borrowing within the territory of Indi
|
|
|
|
|
a
|
|
|
|
|
upon the security of the Consolidated Fund of the State within such limits, if a
|
|
|
|
|
ny,
|
|
|
|
|
as may from time to time be fixed by the Legislature of such State by law and to
|
|
|
|
|
the giving of guarantees within such limits, if any, as may be so fixed.
|
|
|
|
|
|
|
|
|
|
144
|
|
|
|
|
|
|
|
|
|
THE CONSTITUTION OF INDIA
|
|
|
|
|
|
|
|
|
|
(2) The Government of India may, subject to such conditions as may be
|
|
|
|
|
laid down by or under any law made by Parliament, make loans to any State or,
|
|
|
|
|
so long as any limits fixed under article 292 are not exceeded, give guarantees
|
|
|
|
|
in respect of loans raised by any State, and any sums required for the purpose
|
|
|
|
|
of making such loans shall be charged on the Consolidated Fund of India.
|
|
|
|
|
(3) A State may not without the consent of the Government of India raise
|
|
|
|
|
any loan if there is still outstanding any part of a loan which has been made to
|
|
|
|
|
the State by the Government of India or by its predecessor Government, or in
|
|
|
|
|
respect of which a guarantee has been given by the Government of India or by
|
|
|
|
|
its predecessor Government.
|
|
|
|
|
(4) A consent under clause (3) may be granted subject to such
|
|
|
|
|
conditions, if any, as the Government of India may think fit to impose.
|
|
|
|
|
CHAPTER III.—PROPERTY, CONTRACTS, RIGHTS, LIABILITIES,
|
|
|
|
|
OBLIGATIONS AND SUITS
|
|
|
|
|
294. Succession to property, assets, rights, liabilities and obligations
|
|
|
|
|
in certain cases.—As from the commencement of this Constitution—
|
|
|
|
|
(a) all property and assets which immediately before such
|
|
|
|
|
commencement were vested in His Majesty for the purposes of the
|
|
|
|
|
Government of the Dominion of India and all property and assets which
|
|
|
|
|
immediately before such commencement were vested in His Majesty for
|
|
|
|
|
the purposes of the Government of each Governor’s Province shall vest
|
|
|
|
|
respectively in the Union and the corresponding State, and
|
|
|
|
|
(b) all rights, liabilities and obligations of the Government of the
|
|
|
|
|
Dominion of India and of the Government of each Governor's Province,
|
|
|
|
|
whether arising out of any contract or otherwise, shall be the rights,
|
|
|
|
|
liabilities and obligations respectively of the Government of India and
|
|
|
|
|
the Government of each corresponding State,
|
|
|
|
|
subject to any adjustment made or to be made by reason of the creation before
|
|
|
|
|
the commencement of this Constitution of the Dominion of Pakistan or of the
|
|
|
|
|
Provinces of West Bengal, East Bengal, West Punjab and East Punjab.
|
|
|
|
|
295. Succession to property, assets, rights, liabilities and obligations
|
|
|
|
|
in other cases.—(1) As from the commencement of this Constitution—
|
|
|
|
|
(a) all property and assets which immediately before such
|
|
|
|
|
commencement were vested in any Indian State corresponding to a State
|
|
|
|
|
specified in Part B of the First Schedule shall vest in the Union, if the
|
|
|
|
|
purposes for which such property and assets were held immediately
|
|
|
|
|
before such commencement will thereafter be purposes of the Union
|
|
|
|
|
relating to any of the matters enumerated in the Union List, and
|
|
|
|
|
|
|
|
|
|
145
|
|
|
|
|
|
|
|
|
|
THE CONSTITUTION OF INDIA
|
|
|
|
|
|
|
|
|
|
(b) all rights, liabilities and obligations of the Government of any
|
|
|
|
|
Indian State corresponding to a State specified in Part B of the First
|
|
|
|
|
Schedule, whether arising out of any contract or otherwise, shall be the
|
|
|
|
|
rights, liabilities and obligations of the Government of India, if the purposes
|
|
|
|
|
for which such rights were acquired or liabilities or obligations were incurred
|
|
|
|
|
before such commencement will thereafter be purposes of the Government
|
|
|
|
|
of India relating to any of the matters enumerated in the Union List,
|
|
|
|
|
subject to any agreement entered into in that behalf by the Government of India
|
|
|
|
|
with the Government of that State.
|
|
|
|
|
(2) Subject as aforesaid, the Government of each State specified in Part B
|
|
|
|
|
of the First Schedule shall, as from the commencement of this Constitution, be t
|
|
|
|
|
he
|
|
|
|
|
successor of the Government of the corresponding Indian State as regards all
|
|
|
|
|
property and assets and all rights, liabilities and obligations, whether arising
|
|
|
|
|
out
|
|
|
|
|
of any contract or otherwise, other than those referred to in clause (1).
|
|
|
|
|
296. Property accruing by escheat or lapse or as bona vacantia.—
|
|
|
|
|
Subject as hereinafter provided, any property in the territory of India which, i
|
|
|
|
|
f
|
|
|
|
|
this Constitution had not come into operation, would have accrued to His Majesty
|
|
|
|
|
or, as the case may be, to the Ruler of an Indian State by escheat or lapse, or
|
|
|
|
|
as
|
|
|
|
|
bona vacantia for want of a rightful owner, shall, if it is property situate in
|
|
|
|
|
a
|
|
|
|
|
State, vest in such State, and shall, in any other case, vest in the Union:
|
|
|
|
|
Provided that any property which at the date when it would have so
|
|
|
|
|
accrued to His Majesty or to the Ruler of an Indian State was in the possession
|
|
|
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or under the control of the Government of India or the Government of a State
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shall, according as the purposes for which it was then used or held were
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purposes of the Union or of a State, vest in the Union or in that State.
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Explanation.—In this article, the expressions “Ruler” and “Indian State<74>
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<EFBFBD><EFBFBD>
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have the same meanings as in article 363.
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2015-04-23 07:30:03 +00:00
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297. Things of value within territorial waters or continental shelf
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and resources of the exclusive economic zone to vest in the Union.— (1) All
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lands, minerals and other things of value underlying the ocean within the
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territorial waters, or the continental shelf, or the exclusive economic zone, of
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India shall vest in the Union and be held for the purposes of the Union.
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(2) All other resources of the exclusive economic zone of India shall also
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vest in the Union and be held for the purposes of the Union.
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THE CONSTITUTION OF INDIA
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146
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(3) The limits of the territorial waters, the continental shelf, the exclusive
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economic zone, and other maritime zones, of India shall be such as may be
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specified, from time to time, by or under any law made by Parliament.
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2015-04-23 07:29:54 +00:00
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298. Power to carry on trade, etc.— The executive power of the Union
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and of each State shall extend to the carrying on of any trade or business and t
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o
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the acquisition, holding and disposal of property and the making of contracts
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for any purpose:
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Provided that—
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(a) the said executive power of the Union shall, in so far as such
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trade or business or such purpose is not one with respect to which
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Parliament may make laws, be subject in each State to legislation by the
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State; and
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(b) the said executive power of each State shall, in so far as such
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trade or business or such purpose is not one with respect to which the
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State Legislature may make laws, be subject to legislation by Parliament.
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2015-04-23 07:29:52 +00:00
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299. Contracts.—(1) All contracts made in the exercise of the executive
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power of the Union or of a State shall be expressed to be made by the
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President, or by the Governor of the State, as the case may be, and all such
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contracts and all assurances of property made in the exercise of that power shal
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l
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be executed on behalf of the President or the Governor by such persons and in
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such manner as he may direct or authorise.
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(2) Neither the President nor the Governor shall be personally liable in
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respect of any contract or assurance made or executed for the purposes of this
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Constitution, or for the purposes of any enactment relating to the Government
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of India heretofore in force, nor shall any person making or executing any such
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contract or assurance on behalf of any of them be personally liable in respect
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thereof.
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300. Suits and proceedings.—(1) The Government of India may sue or
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be sued by the name of the Union of India and the Government of a State may
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sue or be sued by the name of the State and may, subject to any provisions
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which may be made by Act of Parliament or of the Legislature of such State
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enacted by virtue of powers conferred by this Constitution, sue or be sued in
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relation to their respective affairs in the like cases as the Dominion of India
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and
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the corresponding Provinces or the corresponding Indian States might have
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sued or been sued if this Constitution had not been enacted.
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147
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THE CONSTITUTION OF INDIA
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(2) If at the commencement of this Constitution—
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(a) any legal proceedings are pending to which the Dominion of
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India is a party, the Union of India shall be deemed to be substituted for
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the Dominion in those proceedings; and
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(b) any legal proceedings are pending to which a Province or an
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Indian State is a party, the corresponding State shall be deemed to be
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substituted for the Province or the Indian State in those proceedings.
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2015-04-23 07:30:04 +00:00
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CHAPTER IV.—RIGHT TO PROPERTY
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300A. Persons not to be deprived of property save by authority of
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law.— No person shall be deprived of his property save by authority of law.
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