Taxation of Automobiles –A discourse on the eternal tug for taxes between States
In India, the taxation system is based on fiscal federalism i.e. the Centre and State have independent taxing powers. Some taxes are levied by the Centre but collected and assigned to States. One such example is that of sales tax. Sales tax was undisputedly, one of the prime sources of revenue for States before GST. Thus, States attempted to envelop most sales transactions within their taxing jurisdiction, which at times conflict and compete with other States’ taxing powers.
Through this article, our Partner, Mr. Dharnendra Kumar Rana and Associate, Ms. Sneha Ghosh have discussed these conflicts from the perspective of sale of automobiles.
Please click below to read our article titled “Taxation of Automobiles –A discourse on the eternal tug for taxes between States“ on the issue.