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Intergovernmental Tax Immunities - Union State Financial Relationship
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In this lecture, Bhavin first explains the executive powers of Union and States to indulge in trade. After this he explains the provisions and reasons for tax immunities given to governments from taxes imposed by each other.

Bhavin Sangoi
BA Political Science and Psychology, Mumbai University. Teaching Polity, Economics and international relations for 7 years.

U
Unacademy user
Bro I watched this video only to know what local authorities mean as u might know that local authorities are not exempted from Central Texation....n also what does you mean by saying occasional to ordinary functions
Sir, if railways is exempted from paying tax on electricity consumed by it, then why is it said in news that railways has huge electricity bills to pay and railways is also taking steps to cut down on its energy bill...kindly clear the confusion...
Bhavin Sangoi
3 years ago
Because Tax and tarrif are two different things. Railway is exempt from tax not from tarrif. Railway also have to pay the price of electricity that it uses.
M M
3 years ago
oh ! i got my mistake ! thanks a lot !
Sir,please tell me that council of ministers is collection collectively responsible to Parliament especially loksabha in that capacity he is also individually responsible for his work related to his department (Source OUR Parliament by subash kashyap) but in lakshmikant a minister is responsible to President, so he remains during his pleasure.Both types of MCQs I always misinterpret.
  1. Course Name: In-depth study of Centre State Relations Lesson Name: Union State Financial Relations V Presented by Bhavin Sangoi


  2. About me B.A in Political Science & Psychology Appeared in UPSC CSE Mains Teaching Indian Polity, International Relations, economics &mental Ability since 5 years Experience of teaching for various competitive exams such as NTSE, CET & UPSC Rate, Review and Recommend Follow me on: https://Unacademy.in/user/BhavinSangoi low me on: https/Unacademy in/user/ BhavinSangoi


  3. power to carry on Trade Executive Power of the Union and of each state shall extend to the carrying of any trade or business and to the acquisition, holding and disposal of property and the making of contracts for any purpose. Vthe said executive power of union shall be subject to state legislation in matters of state the said executive power of union shall be subject to state legislation in matters of state list


  4. the said executive power of state shall be subject to union legislation in matters of union list and residuary matters (Article 298) Subject to the provision of part XIII trade, commerce and intercourse through out the territory of India shall be free ( Article 301)


  5. immunity The Property of the center (whether used for sovereign or commercial purpose) is exempt from all taxes by states or authorities within a state The property and income of state (whether used for or accruing by sovereign functions) is exempt from union taxation


  6. continued Union can impose tax on property or income of tax used for or accruing by commercial operations unless declared by Parliament to be incidental to the ordinary functions of government s unless declared by Parliament to be incidenal to the


  7. Corporation and local authorities Corporations or companies of union are considerably separate legal entity and hence they don't enjoy the immunity granted to union from state taxation Property or income of local authorities such as municipalities, district boards, Panchayats etc is not immune from central taxation


  8. Tax on Sale of Electricity Unless Parliament by law provides state shall not impose any tax on consumption or sale of electricity by or to the Government of India or any railway company operating that railway


  9. Inter State River Valley The tax imposed byal not come into effe unless eserved forthe VThe tax imposed by state legislature shall not come into effect unless reserved for the consideration and assented by the President of India, in respect of any water or electricity stored, generated, consumed, distributed or sold by an authority established by any law before the commencement of constitution or law made by Parliament for regulating or developing any inter state river or river valley