Article 115 of the Constitution of India

(2) The Legislature of a State may by law establish a Contingency Fund in the nature of an imprest to beentitled “the Contingency Fund of the State” into whichshall be paid from time to time such sums as may bedetermined by such law, and the said Fund shall beplaced at the disposal of the Governor 1***of the State to enable advances to be made by him out of such Fund for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by theLegislature of the State by law under article 205 orarticle 206. Distribution of Revenues between the Union and the States 268. (1) Such stamp duties and such duties of excise on medicinal and toilet preparations as are mentioned inthe Union List shall be levied by the Government ofIndia but shall be collected— (a) in the case where such duties are leviable within any 2[Union territory], by the Government of India, and (b) in other cases, by the States within which such duties are respectively leviable.Contingency Fund. Duties levied by the Union butcollected andappropriated bythe States. 1The words “or Rajpramukh” omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. 2Subs. by s. 29 and Sch., ibid., for “State specified in Part C of the First Schedule”.THE CONSTITUTION OF INDIA (Part XII. —Finance, Property, Contracts and Suits. — Arts. 267-268.)161 (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. *[268A. (1) Taxes on services shall be levied by the Government of India and such tax shall be collected and appropriated by the Government of India and the States in the manner provided in clause (2). (2) The proceeds in any financial year of any such tax levied in accordance with the provisions of clause (1) shall be— (a) collected by the Government of India and the States; (b) appropriated by the Government of India and the States, in accordance with such principles of collection and appropriation as may be formulated by Parliament by law.] 269. 1[(1) Taxes on the sale or purchase of goods and taxes on the consignment of goods shall be levied andcollected 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 mannerprovided 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 ofgoods 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 itor to any other person), where such consignment takes place in the course of inter-State trade or commerce.Service tax levied by Union and collectedand appropriated bythe Union and theStates. Taxes levied and collected by theUnion but assignedto the States. *Ins. by the Constitution (Eighty-eighth Amendment) Act, 2003, s. 2 (which is yet not in force, date to be notified later on). 1Subs. by the Constitution (Eightieth Amendment) Act, 2000, s. 2, for cls. (1) and (2).THE CONSTITUTION OF INDIA (Part XII. —Finance, Property, Contracts and Suits. — Arts. 268-269.)162 (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.] 1[(3) Parliament may by law formulate principles for determining when a 2[sale or purchase of, or consignment of, goods] takes place in the course of inter-State trade or commerce.] 3[270. (1) All taxes and duties referred to in the Union List, except the duties and taxes referred to in articles *[268 and 269], respectively, surcharge on taxes and duties referred to in article 271 and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States in the manner provided in clause (2). (2) Such percentage, as may be prescribed, of the net proceeds of any such tax or duty in any financial year shall not form part of the Consolidated Fund of India, but shall be assigned to the States within which that tax or duty is leviable in that year, and shall be distributed among those States in such manner and from such time as may be prescribed in the manner provided in clause (3). (3) In this article, “prescribed” means, — (i) until a Finance Commission has been constituted, prescribed by the President by order, and (ii) after a Finance Commission has been constituted, prescribed by the President by order after considering the recommendations of the Finance Commission.]Taxes levied and distributed betweenthe Union and theStates. 1Ins. by the Constitution (Sixth Amendment) Act, 1956, s. 3. 2Subs by the Constitution (Forty-sixth Amendment) Act, 1982, s. 2, for “sale or purchase of goods”. 3Subs. by the Constitution (Eightieth Amendment) Act, 2000, s. 3, for art. 270 (w.e.f. 1-4-1996). *The words and figures in brackets shall stand substituted as “articles 268, 268A and 269” by the Constitution (Eighty-eighth Amendment) Act, 2003, s. 3 (which is yet not inforce, date to be notified later on).THE CONSTITUTION OF INDIA (Part XII. —Finance, Property, Contracts and Suits. — Arts. 269-270.)163 271. Notwithstanding anything in articles 269 and 270, Parliament may at any time increase any of theduties or taxes referred to in those articles by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part of the Consolidated Fundof India. 272. [Taxes which are levied and collected by the Union and may be distributed between the Union and the States.]Rep. by the Constitution (Eightieth Amendment) Act , 2000 , s. 4. 273. (1) There shall be charged on the Consolidated Fund of India in each year as grants-in-aid of the revenues of the States of Assam, Bihar, Orissa and West Bengal, inlieu of assignment of any share of the net proceeds in each year of export duty on jute and jute products to those States, such sums as may be prescribed. (2) The sums so prescribed shall continue to be charged on the Consolidated Fund of India so long as any export duty on jute or jute products continues to be levied by the Government of India or until the expiration of ten years from the commencement of this Constitutionwhichever is earlier. (3) In this article, the expression “prescribed” has the same meaning as in article 270. 274. (1) No Bill or amendment which imposes or varies any tax or duty in which States are interested, orwhich varies the meaning of the expression “agricultural income” as defined for the purposes of the enactments relating to Indian income-tax, or which affects the principleson which under any of the foregoing provisions of this