news round up - Taxmann
news round up - Taxmann
news round up - Taxmann
- TAGS
- news
- round
- taxmann
- taxmann.com
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
2010] CONSTITUTIONAL AMENDMENT - A PREREQUISITE FOR GST 123<br />
The relevant entries from the Lists with regard to imposition of tax are<br />
mentioned below :—<br />
- Entry 83 of List I empowers the Central Government to put duty of<br />
customs including export duties.<br />
- Entry 84 of List I empowers the Central Government to charge duty<br />
of excise on tobacco and other goods manufactured or produced in<br />
India.<br />
- Entry 92 of List I empowers the Central Government to charge taxes<br />
on service within India, outside India or from outside India or import.<br />
- Entry 92A of List I empowers the Central Government to charge tax<br />
on sale or purchase of goods other than <strong>news</strong>paper, where such sale<br />
or purchase takes place in the course of inter-State trade or commerce.<br />
- Entry 92C of List I empowers the Central Government to tax services<br />
under the Finance Act, 1994.<br />
- Entry 54 of List II empowers the State Government to charge tax on<br />
the sale or purchase or goods other than <strong>news</strong>paper, subject to the<br />
provisions of Entry 92A of Union List.<br />
Article 286 of the Constitution of India states that no law of a State shall<br />
impose, or authorize the imposition of, a tax on the sale or purchase of<br />
goods where such sale or purchase takes place outside the State or in<br />
course of the import of goods into, or export of goods out of the territory<br />
of India.<br />
The Constitution, thus, gives majority power to the Central Government<br />
to collect revenue and fewer powers have been vested in the State<br />
Government. As per the present allocation of jurisdiction in the Constitution,<br />
it is estimated that the Central Government collects 62 per cent of the<br />
revenue in the country while the States collects only 38 per cent of it.<br />
Power to levy at present<br />
2. In accordance with the power vested with the Centre and State under<br />
the Constitution, the Centre and States are levying tax as below :—<br />
� Central Excise, Customs Duty, Central Sales Tax and Service Tax by<br />
the Centre, and<br />
� VAT/Sales tax, Entertainment tax, Luxury tax, by the States.<br />
Since the introduction of service tax in 1994, it is imposed under Entry 97<br />
of List I. It is residuary in nature. Entry 92C was introduced by 88th<br />
Constitution Amendment in 2003 and the Central Government has exclusive<br />
jurisdiction over the same.<br />
Thus, presently the Centre has the power to impose a broad spectrum of<br />
excise duties on manufacture, customs duty, tax on services, inter-State<br />
GOODS & SERVICES TAX CASES ❑ JANUARY 20 - FEBRUARY 4, 2010 ◆ 33