India has a federal form of government, and hence a federal finance system. The essence of federal form of government is that the Centre and the State Governments should be independent of each other in their respective, constitutionally demarcated spheres of Action. Once the fundamentals of the government are spelt out, it becomes equally important that each of the government should be provided with sources of raising adequate revenues to discharge the functions entrusted to it. For the successful operation of the federal form of government financial independence and adequacy for the backbone.
Sales taxes are most important revenue for the state sin India. While the taxes vary in their design, they are generally levied in the first point
…show more content…
List III is a concurrent List, which includes administration of justice, economic and social planning, trade and commerce, etc. According to Article 246, Seventh Schedule, Parliament has exclusive powers to make laws regarding matters enumerated in List I, not withstanding the provisions of the other clauses of this Article. On the other hand, the Legislature of any state has exclusive power to make laws for the state regarding any of the matters enumerated in List II, subject to other clauses[5]. With regard to List III, both the Parliament and a State Legislature can make laws but the law listed in I or III, vests with the Union. Thus, the Union has supremacy over a wide range of the legislative field. These lists include the powers of taxation also. The union List includes among others, taxes on income other than agricultural income, excise duties, customs and corporation tax. The State list includes land revenue, excise on Alcoholic liquors, tax on agricultural incomes, estate duty, taxes on sale or purchase of goods, taxes on vehicles, on professions, on luxuries, on entertainment, on stamp duties, etc. the concurrent list does not include any important taxes. Accordingly there are both mandatory and enabling provisions in the Constitution for facilitating a wide-ranging transfer of resources, arranged in a systematic manner, through
1) Levy of duties by the Center but
Britain, to begin with, has no written constitution due to the country’s own constitutional structure’s stability. It remains uncodified, yet it’s legal sources stem from Acts of parliament, European Union law, equity and common law,. Therefore the varying powers of parliamentary sovereignty and the rule of law will be considered against these sources.
Among these last few Articles is where the Constitution lays out how and when the state is allowed to tax its citizens. In three short pages, it manages to lay out how property, real estate, estates, motor vehicles and fuel, income, inheritance, and food can be taxed.
The second of the tax components is sales tax. Sales tax is usually controlled by the counties as
Federalism is the federal principle or system of government. Multiple governments function and rule given territories and different sets of people. In this system the sovereignty of a country is constitutionally divided between a national or a central government and other state or principle governments where political and admistrative powers are shared between them. The Framers chose federalism as a way of government because they assumed that governmental power inevitably poses a hazard to single liberty, the exercise of governmental power must be reserved, and that to split governmental control is to avoid its manipulation.
1. Supremacy of National Law: The Constitution and federal law are the supreme law of the land; they pre-empt state constitutions and state law. Article 6, section 2 explains that when a dispute occurs between the state and national government the national government pre-empts conflicting state and local laws, making them unenforceable. The hierarchy of the law is as follows:
Federalism is the system of government in which power is divided by constitution between central and regional government. Federalism is a term that covers the relationship between the states and the federal government, from constitutional issues to the most of the issues happening around the country . It covers laws and rights of the citizens that can be either taken care of by the state or federal government. This paper will be explaining how federalism is important and difference between federalists and anti-federalists .
A monarchy is a person, mostly meaning king, who ruled the whole country in absolute power as the founders were from; however the founders didn't want the king to rule for having too much power. A king can command everyone as everyone must obey, can control everyone lives whenever he want, and can also punish everyone without a reason. If he is a good king which is good, but for a bad is a dangerous as many of lives may be lost which is an unfair problem. As the founders won the revolution, they created a federalist government with check and balance. A federalist government system is divided into two governments which are the fifty state governments and the federal government both control the country. Each government divide into three branches
8. The state parliament makes laws that effect most areas of our lives, such as education, health and transport.
Taxation is by which governments finance their expenditure by requiring costs on corporate entities and citizens. The government uses tax to discourage or encourage certain economic choices. Example, reduce in taxable personal or household rent by the amount paid as interest on home contract loans results in greater construction activity and generates more jobs. An essential function of taxation is to support government expenditures. Different justifications and explanations for taxes have offered throughout history. New taxes were used to support ruling classes, raise armies and build defenses. Often, the authority to tax stemmed from a divine or supranational right. Taxes are significant source of revenue, and its collection is one of the most important functions performed by the state
Parliamentary controls can only come into action before the bill is passed and made into law. Once the new law is official Parliament can no longer do anything to alter or rid of this law. That duty is passed onto the Judiciary.
Duties on imported goods such as alcoholic beverages, motor vehicles, cigarettes, and gasoline and oil continue to be major sources of government incomeIndividual
Legislation or also known as Statutory Law is the laws that are made by the legislature such as Parliament and State Assemblies under powers conferred on them by the constitution. It is divided into two categories which are Federal Legislation and State Legislation. Federal Legislation is applicable to all states which is enacted by the Parliament while State Legislation is applicable only to a particular state such as Selangor and was enacted by the State Assemblies.
In Article 44, the legislative authority of the Federation shall be vested in a Parliament, which shall consist of the Yang di-Pertuan Agong and two Majlis (Houses of Parliament) to be known as the Dewan Negara (Senate) and the Dewan Rakyat (House of Representatives).
To define parliamentary sovereignty does not seem too complicated when it is assessed in isolation. Only in connection with other constitutional principles difficult tensions arise. The orthodox view of parliamentary sovereignty is simply that only parliament has the right to make or unmake law and that no other institution can challenge that right. This also includes the rule that parliament cannot bind its successors. Parliament can follow its own procedural rules as it wishes and court cannot examine the procedure by which legislation has been passed (enrolled bill rule).
This essay examines the trajectory of India’s fiscal policy with particular focus on historical trends, the development of fiscal discipline frameworks, the recent experience of fiscal response to the global financial crisis and subsequent return to a fiscal consolidation path. The initial years of India’s planned development strategy were characterized by a conservative fiscal policy whereby deficits were kept under control. The tax system was geared to transfer resources from the private sector to fund the large public sector driven industrialization process and also cover social welfare schemes. Indirect taxes were a larger source of revenue than direct taxes. However, growth was anemic and the system was prone to inefficiencies. In the 1980s some attempts were made to reform particular sectors and make some changes in the tax system. But the public debt increased, as did the fiscal deficit. Triggered by higher oil prices and political uncertainties, the balance of payments crisis of 1991 led to economic liberalization. The reform of the tax system commenced with direct taxes increasing their share in