## CONSTITUTION 268

### CONSTITUTION 268 — Duties levied by the Union but collected and appropriated by the States
- https://unisonlegal.in/statutes/constitution/268

> 268. Duties levied by the Union but collected and appropriated by the
States.-(1) Such stamp duties 2*** as are mentioned in the Union List shall be
levied by the Government of India but shall be collected-
(a) in the case where such duties are leviable within any 3[Union
territory], by the Government of India, and
(b) in other cases, by the States within which such duties are
respectively leviable.
(2) The proceeds in any financial year of any such duty leviable within
any State shall not form part of the Consolidated Fund of India, but shall be
assigned to that State.
4268A. [Service tax levied by Union and collected and appropriated by
the Union and the States.].-Omitted by the Constitution (One Hundred and
First Amendment) Act, 2016, s. 7 (w.e.f. 16-9-2016).

1. The words "or Rajpramukh" omitted by the Constitution (Seventh Amendment) Act,
1956, s. 29 and Sch. (w.e.f. 1-11-1956).
2. The words "and such duties of excise on medicinal and toilet preparations"
omitted by the Constitution (One Hundred and First Amendment) Act, 2016, s. 6,
(w.e.f. 16-9-2016).
3. Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch., for "State
Specified in Part C of the First Schedule" (w.e.f. 1-11-1956).
4. Ins. by the Constitution (Eighty-eighth Amendment) Act, 2003, s. 2 (date not notifed).
IndiaCode
269. Taxes levied and collected by the Union but assigned to the
States.-1[(1) Taxes on the sale or purchase of goods and taxes on the
consignment of goods 2[except as provided in article 269A] shall be levied and
collected by the Government of India but shall be assigned and shall be deemed
to have been assigned to the States on or after the 1st day of April, 1996 in the
manner provided in clause (2).
Explanation.-For the purposes of this clause,-
(a) the expression "taxes on the sale or purchase of goods" shall
mean taxes on sale or purchase of goods other than newspapers, where
such sale or purchase takes place in the course of inter-State trade or
commerce;
(b) the expression "taxes on the consignment of goods" shall mean
taxes on the consignment of goods (whether the consignment is to the
person making it or to any other person), where such consignment takes
place in the course of inter-State trade or commerce.
(2) The net proceeds in any financial year of any such tax, except in so far
as those proceeds represent proceeds attributable to Union territories, shall not
form part of the Consolidated Fund of India, but shall be assigned to the States
within which that tax is leviable in that year, and shall be distributed among those
States in accordance with such principles of distribution as may be formulated by
Parliament by law.]
3[(3) Parliament may by law formulate principles for determining when a
4[sale or purchase of, or consignment of goods] takes place in the course of interState trade or commerce.]