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Indian Constitution Imposes Restriction on Taxing Powers of the Centre and States.

SYNOPSIS : The articles 276, 287 and 288 of Indian constitution restricts the State to levy tax on Inter-State sales or purchase

Posted On : 13-11-2024

Indian Constitution Imposes Restriction on Taxing Powers of the Centre and States

The Article 276 of Indian Constitution restricts the State's Power to levy Taxes on Profession and Trade

The Article 287 and 288 restricts State's power to levy tax on Electricity

1. States are debarred from levying a tax on inter-state sale or purchase
2. No State can tax a sale or purchase taking place outside the State.
3. A State is debarred from levying a tax on sale or purchase taking place in the course of import and export
4. Parliament is empowered to impose restrictions on State taxation of sale or purchase