The subjects on which Union or State or both can levy taxes are de ned in ........

Indian Polity Others

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The subjects on which Union or State or both can levy taxes are de?ned in

An Order of President

The Seventh schedule of the constitution

Part III of the Constitution

A Circular of the Ministry of Finance on an annual basis

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Explanation:

The constitution provided a way to distribute the revenues from captain taxes collected by the centre among the states. The 7th schedule contains a detailed list of this division. Further the recent One Hundred and First Amendment Act, 2016 to the Constitution, in view of introduction of GST, modified the 7th schedule to reflect the present situation of centre state taxation power distribution. Since the taxing abilities of

the states are not necessarily commensurate with their spending responsibilities, some of the centre’s revenues need to be assigned to the state governments