UPSC Indian Polity and Civics Federalism and Center State Relation Question Bank Centre-State Relations

Consider the following pairs:

1. Taxes levied by the union but collected and appropriated by the states : Stamp duties

2. Taxes levied and collected by the centre but assigned to the states : Taxes on the sale of goods in the course of inter- states trade

Which of the pairs given above is/are correctly matched?

A) Only 1

B) Only 2

C) Both 1 and 2

D) Neither 1 nor 2

Correct Answer: C

1.	Taxes levied by the union but collected and appropriated by the states	:	Stamp duties
2.	Taxes levied and collected by the centre but assigned to the states	:	Taxes on the sale of goods in the course of inter- states trade