Consider the following statements 1 A State Legislature needs the approval of the President for impo...........

Indian Polity State Legislature

Consider the following statements.

1) A State Legislature needs the approval of the President for imposing any tax.

2) A bill imposing restrictions on the freedom of inter-state trade and commerce in the Parliament can be introduced only after Presidential assent.

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

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Explanation:

Statement 1 is incorrect because for subjects enumerated in State List, State Legislature doesnt require permission of president.

Exception: Under Article 274 Constitution of India: Prior recommendation of President required to Bills affecting taxation in which States are interested which include:

(a) A tax or duty the whole or part of the net proceeds whereof are assigned to any State; or

(b) A tax or duty by reference to the net proceeds whereof sums are for the time being payable out of the Consolidated Fund of India to any State.

Statement 2: Under Article 302, the Parliament can restrict the freedom of trade between different states, if it is necessary for the public interest. This restriction can be applied on any State or it may also be placed in any part of the territory of India. While the Parliament has the power to impose restrictions on the freedom of trade in any State or part of the territory of India, this power is subjected to the provisions of Article 303 of the Indian Constitution which provides that the Parliament cannot impose a restriction on any State in favour of another State.