Stress and strain in central-state relations and conflict of interest in framing taxation policies in India
ABSTRACT
The principle of mutatis mutandis applies when we speak of taxation norms in a federal country as to what essentials to be grouped into non- taxable and taxable. With the advent of the Indian Constitution, there was clear cut intention that there shall be separation of powers and each carrying its own sub powers. Legislature brings the beauty as it is responsible for the functioning of a country to a larger extent. It is a federal country and there is distribution of powers as well but maintaining them is a herculean task since it is one of the essential elements of the good governance. Taxation powers provided to each centre and the states under the specific statutes cannot go hand in hand until there is enough resource allocation as the deficiency leads to a conflict which would not work in the favour of the development and growth of the country. Conflict is bound to arise in such a situation as states have a larger responsibility in comparison with the central government as it is always seen that a nation is made of up of its states so states must regulate themselves in order to bring the nation on par with other countries. The federal structures of the countries bring half the problem to voidness as there no department or government is overburdened. There should be equitable allocation of funds from the Centre to the government of each state.
Keywords: mutatis mutandis, taxation, federal, distribution of powers, legislature, conflict
INTRODUCTION
In February, 2024, the states of Karnataka, Kerela and Tamil Nadu expressed dissent and dissatisfaction towards the Centre for unfair tax revenue allocation ahead of the general elections. This led to the Karnataka’s Chief Minister posting on X that it had received 4.71% in the 14th Finance Commission and this figure reduced to 3.64% in the 15th Finance Commission[1]. This further highlighted a significant part of the tax allocation to the states, that is, the criteria used for distribution “high weightage being given to income distance, the distance of the state’s income from the state with the highest income, and population”[2]. Looking at these figures, one can tell that the tax allocation conflict remains a hot topic. Taxes being the largest source of income in India as the money so collected is used in the development and administration of the nation by the government. Organization of Economic Cooperation and Development conducted a study across various federal nations with the title “Navigating Conflict and Fostering Co-operation in Fiscal Federalism” which highlights the intergovernmental disputes and the recommendations that could be made for resolving these disputes. It cites an example saying that during a national program, the central government may raise the tax while on the counterpart, the state government might not want so in order to alleviate the citizens’ burden. Hence this balancing of fiscal powers is required and it varies from country to country depending on its circumstances, subnational autonomy and institutional structure.[3]
Due to this misbalancing, the judiciary always has to step in and resolve the dispute which exposes the deeper sides and bringing out a new dimension to the existing conflict that is, that it cannot be resolved politically and it can only happen through the intervention of judiciary by suggesting cooperation, communication and conflict resolution mechanisms. Like there are several examples at the global level such as the National Economic Policy Board in Brazil[4] and the National Cabinet in Australia[5] which are impactful in promoting resolution of disputes outside the court and improve the intergovernmental relations. In a study conducted by de Biase & Dougherty in 2021[6] and de Mello & Ter- Minassian in 2022[7], both the studies aimed at one inference that the way COVID- 19 pandemic highlighted the importance and need of cooperation and coexistence to address issues which is too complex and as such not a one man’s thing by ‘policy coordination, resource management, transparency, and regulatory framework. Talking about the Indian context, the Article 256[8] of the Constitution of India says: “No tax shall be levied or collected except by the authority of law[9].” Hence this stipulates that the government in no circumstances can impose a tax which is not passed as a law and the determining powers rests with the government at the centre, governments of each state, and local authorities situated within each state like municipal corporations, etc. Before diving into the provisions of taxes, it is important to delve into the topic of territorial nexus which forms the basis of the tax distribution between the centre and the states. Therefore, territorial nexus is nothing but a connection between the subject and the object so that there is enough ground for imposition of taxes. According to Shapiro and Vanden Eynde 2023, “the conflict between the central government and the governments of each state in relation with fiscal incentives increased when in 2009, at the hands of the central government, a novice tax system was introduced which lead to an increase in the powers of holding the state governments in their hands”.[10]
I. RESEARCH OBJECTIVE
This research paper aims to analyze the intergovernmental conflict in relation with the taxes and the imposition of taxes across the world with a larger focus on the Indian context. It also recommends the ways in which the conflict can be resolved by citing the secondary sources such as the studies conducted and the inferences obtained therein.
II. WHY DO WE HAVE TAXES?
As held earlier, the government’s income is mostly and largely generated form the taxes which in turn extensively serves the main agenda of every country’s government imposing tax on its citizens. Yet, the ideal tax collection remains far from perfection as it can only be achieved by “excessive government borrowing, and should do so without discouraging economic activity and without deviating too much from tax systems in other countries.”[11]
III. WHAT ARE THE CHALLENGES FACED BY THE DEVELOPING COUNRTIES WHILE THEY IMPOSE TAXES?
1. In many developing countries, there are instances when the workers who are involved in agriculture or small enterprises are paid seldomly and some are paid in cash, “off the books.” These people do not spend enough in large stores to record sales hence the modern system of raising revenues like imposing taxes on the income and taxes paid by the consumers of a thing becomes null and high tax expectation by the government is thrashed to a level.
2. It is often seen that most of the developing countries do not have a staff that is exemplary, educational, and inculcated with the values and skills needed for this work.
3. To add on, due to the informal structure of the developing countries economy that the policymakers do not have enough data to assess the impacts politically on the tax system hence perpetuates inefficient tax structures.
4. Since there are some developing countries that do not have enough tax policies that is imposed on rich people or them paying property taxes or personal income. It is also because of their great influential power or the political influence or their richness that interferes in making laws that are imposed on them.
Conclusively, it can be said that the countries that are developing need to have policies and laws related to the taxes wherein the skilled people put their work into and deal instead of doing a haphazard work which in turn results into more of protests and menace.
IV. WHAT ARE THE DIFFERENT CATEGORIES OF TAXES SEEN IN THE INDIAN SUBCONTINENT?
To write strictly, the Indian Constitution gives a clear pathway that the powers are separated and distinguished due to which even the taxes that are to be ordained have been divided into three groups, that is, the highest one being the government at the Centre, second one at the State and the last group belongs to the municipal corporations.
Essentially, there are two types of tax structures imposed in India such as the direct taxes and the indirect taxes.
a. Direct tax: We can understand through the nomenclature itself that such a tax is paid by the citizens directly to the government without any intermediate. Such taxes are handled or collected by the Central Board of Direct Taxes (CBDT).
Examples of the direct tax include:
i. Income tax (it is the most prominent and talked about tax paid by the individual to the government and here the individual includes a company, a firm, a cooperative society or societies, trusts and Hindu Undivided Family (HUF).
ii. Gift tax
iii. Wealth tax
iv. Capital gains tax
v. Corporate tax
b. Indirect tax: A category of tax that is opposed to the direct tax, that is, not directly charged from the public. To speak more specifically, these are mostly charges on the goods and services offered to the public. ‘The seller takes these taxes in the prices, which are then collected by the concerned government bodies.’[12]
Examples of the indirect taxes include:
i. Customs duty
ii. Tax on sale of a thing
iii. GST
iv. Value added tax (VAT)
v. Tax on toll
vi. Octroi duty
V. WHO COLLECTS THESE TAXES IN INDIA?
As stated, it is a three tier- system, hence it is divided between them:
i. Income tax, customs duties, central excise duty, etc is looked after by the central government
ii. Agricultural income, professional tax, state excise duty, value added tax, etc. are looked after by the state government
iii. Water tax, property tax, etc. are looked after by the municipal bodies.
As the 2017 incorporation of Goods and Services Tax (GST), it brought within its ambit a lot of taxes and replaced all of them such as:
i. Central excise duty
ii. Service tax
iii. Purchase tax
iv. Octroi
v. Entertainment tax
vi. Sales tax
VI. INTERWOVING OF CONFLICT AND FISCAL POLICIES
A. WORLDWIDE: According to a source, it was said that wars were fought to gain access and control over some resources such as, firstly, the mining booms did give rise to conflict in Africa.[13] Secondly, the fiscal development was a result of the warning of external wars or intimidation to cause external wars.[14] Thirdly, in Nigeria there was insignificant increase in oil price which led to a conflict and thus there was power- sharing agreement at the state level to dissolve the conflict[15].
B. INDIA: A new tax introduction in 2009 led to the increment of the holding and controlling for the sub- national governments according to a study.[16]
To move further, we need to understand the background and it was that in August 2009, the Indian government at the centre introduced a tax called the ad- valorem tax which was charged in the states of the Indian subcontinent which specifically dealt with the mining and extraction of the ores made out from the iron, this was a shocking impact as it did not affect any other mineral ores and just the iron and this was primarily considered one of the reasons of the conflict amongst others. This was a significant change as earlier the states received zero share of the iron mined in their boundary measured in rate per tonne and post the introduction of the tax then contributing to the 5% of some states’ budgets leading to manifold increase in the reward to the state and their budget for each year.
The Indian part which is located on the Centre- East and profoundly known as the Red- Corridor of the country was mostly affected and a hub of conflict due this reason. There were intense clashes between the Maoists insurgents and the state. “As state governments are responsible for managing counter- insurgency efforts within their territory, the royalty hike had the potential to affect the incentives they faced when allocating efforts in iron- rich districts.”[17] This conflict intensified in all centre -east regions with iron ores in comparison with other districts. A graph was made by a study to depict the conflict and the vice versa attacks between the police and the Maoists. The study also added that the conflict can also arise because of the illegal mining conducted by the Maoists in their belt.
VII. TAXATION POWERS AS ENLSITED UNDER THE INDIAN CONSITUTION
A. PROVISIONS RELATABLE WITH SUCH POWERS
Taxation laws in India are prevalent and to some extent, there is a restriction put up for the state and their powers and only given to the central legislatures and this is set up by the article 245(2)[18] of the Indian Constitution. Clause 2 holds that parliament has the powers to make laws on extra- territorial operation of such laws but such power is not conferred on the state legislature. Hence such laws passed by the Parliament cannot be deemed invalid and if by chance, the law is made by the state legislature, it can be challenged in the courts and can only be given the liberty if proved beyond reasonable doubt that there exists a territorial nexus.
B. DOCTRINE OF TERRITORIAL NEXUS
This doctrine implies that the object on which it has to be applied need not necessarily be within the four walls of any state. If it can be proved that there is enough territorial nexus (territorial connection) of the object with the State concerned, then there will be voidness or illegality. A real link between the state objected and the object should be such that it can be declared valid beyond any reasonable doubt. This doctrine has prominently and primarily been used in the taxation cases.
In Wallace Brothers and Company Limited V. Income Tax Commissioner Bombay AIR 1948[19], a firm functioning in India was a partner to the Company working in England. The Company made an overall profit and the income tax authorities functioning in India levied income tax on the company. It was held that the imposition of tax was valid as there was sufficient connection established between India and the Company incorporated in England.
In another landmark case of Tata Iron & Steel Company Limited V. State of Bihar[20], the court held that there that the territorial nexus doctrine itself does not impose tax but it is a medium which helps and lets the legislature decide and deal fairly in the imposition of taxes. Hence it only indicates situations under which the doctrine can be enforced. To set as an example, we can talk about the sale of goods which deals with facet that the most important is that the goods should be available as it is the main component through which the property will pass. To constitute a sufficient nexus or connection, there should be a “presence of goods at the date for the agreement of the sale in the taxing state or production or manufacture in that state of goods, the property wherein eventually passed as a result of the sale wherever that might have taken place, constituted a sufficient nexus between state and the sale.”
List I which is related to the Union list is looked after by the Centre hence the taxes enumerated are dealt with by the Central government while the taxes laid down in the List II are dealt with by the State government. The Concurrent List does not have much tax entries as it goes on to do multiple overlapping and conflict hence not much has enlisted therein.
The List I and II fairly show that the taxes have been distributed in such a way that there is no conflict. Thus, based on the principle that the local strata taxes or taxes local by nature are provided to be collected by the states while the taxes that involve the inclusion of more than one state or the tax which need to be collected uniformly throughout the country and that which can be easily be collected by the Centre in comparison with the State are to be collected by the authorities responsible at the Centre.
C. TAXES COLLECTED BY THE CENTRE (LIST I)
List I entries that run from 1 to 81 adjudge legislative powers to the Parliament and thereafter entries 81 to 92B deal with the entries that put the Parliament under the position of imposing taxes on such entries. Therefore, the non- agricultural income tax is collected by the centre and agricultural income is collected by the State and the apex court has held there is always and should be a broader interpretation, that is, a liberal interpretation to be given so that a comprehensive connotation[21] can be inferred.
In order to aid legislative competence, the entries in the list I are grouped are in two different groups hence taxation in a different group.[22]
D. TAXES COLLECTED BY THE STATE (LIST II)
Entries 45 to 63 deal with taxation powers held by the state government of each state. The major revenue for the state is the sales tax. Entry 54 was subject to an amendment by the 46 Amendment Act, 1982 which added clause 29 to Article 366 which removed the restrictions imposed by the judiciary and include such transactions as and bring them within the ambit of tax charged on sale of goods or purchase of goods. Article 277[23] gives the permission to the states, local bodies at the commencement of the Constitution for levying taxes though it falls under the union list.
E. TAXES UNDER THE CONCURRENT LIST
Entry 35 only lays down the guidelines and directions to be followed while levying tax on vehicles that are propelled mechanically and nothing else is inferred from the wordings mentioned therein. Hence, it does not impose any taxes[24].
F. TAXES THAT ARE OUTSIDE THE PURVIEW OF THE CENTRE AND THE STATE
1. Article 276[25] debars the government of each state from charging its citizens any tax related to profession and trade.
2. Articles 287[26] and 288[27] debars the state from imposing a tax on electricity.
3. Sales tax which is imposed on the sale of anything, property or alike or dislike matters are outside the scope of the state government’s authority of levying tax.
G. SALES TAX RESTRICTION
It was made in order to prevent any mishap between the inter- state conflict and trade and commerce that happens internationally:
1. Inter -state sale is restricted since it can act as a hindrance in the doctrine of free flow of trade and commerce via different states amongst themselves which in turn would given disastrous results in terms of economy.
2. The Central Sales Tax Act, 1956 enacted by the Parliament and it levies taxes while it is collected by the state concerned for its own use.
3. Foreign import and export are exempted from state taxation.
4. Article 286(3)[28] is of utmost importance while dealing with the restriction based on sale tax.
H. INTERPRETATION OF TAX ENTRIES
As held earlier that the mutatis mutandis[29] principle also applies to the tax entries and that it must be interpreted broadly[30] and literally. The highes court of India, that is, the Supreme Court has highlighted that the principle of interpretation of entries as[31], “the cardinal rule of interpretation is that the entries in the legislative lists are not be read in a narrow or restricted sense and that each general word should be held to all ancillary or subsidiary matters which can be fairly and reasonably be said to be comprehended in it.”[32]
Further in another case decided by the Supreme Court, it has been held that the legislature has the authority or the power to levy taxes in prospective as well as retrospective nature. [33]
To another matter in the court, it was declared that the illegal taxes can only be undone when the illegality or the invalidity is removed by the concerned authority and by no other means can be it be declared valid. Hence any disregard or disobey of the decisions of any Court would lead to Contempt of Court therefore, follow steps of validating instead of overruling.[34]
Hence, in adjudging the validation of levying of a tax, the nature and the character has to be determined to underline this issue and the legislative competence and power held.
Orient Paper Mills case[35], the court held that while imposing any tax, the legislature has the authority to establish means and ways for the collection of the tax efficiently, to determine the procedures for assessing obligations on tax and to create provisions that are aiming at prevention of tax evasion.
In B. Krishna Bhatt case[36],it was held that the authority designated for imposition of the tax could only do so within the framework of the law if it provided services to the taxpayers; since in the present case no service was provided, the tax collection was rendered unlawful.
In Belsund Sugar case[37], in which the Supreme Court invalidated a state law that put taxes on the sugar products. It held that since the supply and distribution of sugar products is covered under the concurrent list hence the union list mentioning this shall prevail instead of the state leying fees.
The National Council for Applied Economic Research is a non- profit institute that publishes its researches on the topic of the economy and social development which is presented and available both to the government and the public.[38]
The National Institute of Public Finance and Policy has well-read research in the field of economy as well and it also provides alternative dispute resolution mechanisms.[39]
VIII. TAXING POWERS OF STATES IN SELECTED FEDERAL COUNTRIES
According to a publication by Research Gate[40], few figures related to state allocation of taxing powers in federal countries:
| State taxes as % total taxes | Share of state taxes which states can set rates | Share of state revenues | |
| Australia | 15.3 | 100.0 | 41.1 |
| Austria | 8.8 | 7.0 | 3.7 |
| Belgium | 22.8 | 63.8 | 57.1 |
| Canada | 35.5 | 98.4 | 76.0 |
| Germany | 21.8 | 2.4 | 1.9 |
| Spain | 18.1 | 58.3 | 32.7 |
| Switzerland | 27.0 | 90.4 | 57.4 |
IX. TAX POLICY IN UNITED STATES OF AMERICA
1. In America, the Tax Policy Office functions as the nodal institution for development and institution of programs, internal revenue codes, tax treaties negotiations, a legalised as well as economic inference for tax policies in domestic and international tax imposition areas. Apart from this, the Tax Policy Office presents budget estimates, policy choices dealing with economy and finance as well helps in taking smooth decisions regarding the cash management.
2. Treasury of the America releases a ‘Greenbook’ which lists the administration’s revenue proposals. Tax expenditures “describe revenue losses attributable to provisions of Federal tax laws which allow a special exclusion, exemption, or deduction from gross income or which provide a special credit, a preferential rate of tax, or a deferral tax liability. These exceptions are often viewed as alternatives to other policy instruments, such as spending or regulatory programs.”[41]
3. In relation to international taxes, the American government has several taxes such as taxes on treaties and relate documents and a page dedicated to it is also created,
4. Taxes on information exchange agreements, there is an act called the Foreign Account Tax Compliance Act, etc. Reports related to the exchange in foreign department and a concrete view of the tax imposed by giving a thorough analysis in response to the Congressional Mandate, etc.
5. Various governmental institutions run to help resolve the intergovernmental conflicts such as the Intergovernmental Fiscal Relations Committee, a standing committee of the National Academy of Public Administration, the National Association of State Budget Officers.
X. TAX POLICY IN GERMANY
1. In Germany, a lot of institutions and committees aid in fiscal collaboration across various tiers of the government. Bunesrat (Federal Council) it allows for the integration of the regional interests so that their representation is also made in decision making[42] by Lander at the federal level.
2. It also aids in intergovernmental communication and cooperation via regular dialogues as it increases mutual trust and understanding.
3. It also acts as an alternative dispute resolution mechanism according to Jeffery 2007.
4. Vermittlungsausschuss[43] is another joint committee that has representatives from the Bundestag and Bundesrat that helps in resolving conflicts and promoting mutual trust and cooperation between the federalism and the Lander.
5. The Federal Constitutional Court (FCC) functions to address laws and review them and the government’s compliance with the Basic laws.
6. The Basic Laws function as the grundnorm for the Germany as it distributes powers between the Federation and the Lader.[44] As Article 28 of the Basic Law reads that the local authorities should manage their affairs, financial matters included therein.
7. Wherein, there is a situation created that the federal laws are overlapping the state laws then the federal laws prevail which is turn is a result of harmonisation and fostering regional diversity.
8. After the unification of Germany, there have been several ups and downs in the matters of economy and strains in the social conditions of the Lander, hence a system named ‘modernising federalism’ arose which paved for a nation’s problems and challenges to be addressed and this was notably driven forward and taken care of by the FCC through its decisions and judgements.
9. According to Werner, 2018, the FCC has helped in equalisation of the fiscal[45] system which made the redistribution of financial resources from the wealthier states to the less affluent ones.
XI. TAX POLICY IN BRAZIL
1. Brazil is a federal system with three tier government and the Federal government as the highest authority that sees national concerns and legislative and executive authority.
2. The second tier is the state government that looks after the education, healthcare, environment, and transportation while the third tier is the municipalities focussing on local development across all areas and categories.
3. The Fiscal Responsibility law (LRF)[46] is an act that represents the Brazil government’s efforts towards harmonisation of the disputes and conflict resolution as it helps in ‘fiscal discipline and transparency. This law with its enactments too had some loopholes which had to be looked after by the Supreme Federal Court.
4. CONFAZ (National Council of Finance Policy) was made which acts as the main institutional nodal body for looking after the tax coordination in the country.
5. In 2023, Brazil introduced a tax reform for fostering economic growth.[47] ‘the reform consolidates multiple taxes on goods and services into a single Value Added Tax (VAT) thereby reducing the tax compliance burden on businesses and aiming to enhance the overall efficiency of the tax collection process.’
CONCLUSION
Intergovernmental disputes exist across the globe and that too also in the federal countries where the power of each tier of government is equally distributed and that it has enough to maintain itself without jumping or overlapping on others. Yet, there are some issues that remain and the only solution is the clearer definition of power and responsibilities with judiciary to act as the interpreter and the protector since any law or act that violates even a single provision would bring avalanche in almost every power of the country. Another change should be the establishment of more committees, boards and councils, research centres that help to keep a check and balance and a platform for dialogue sharing.
Given the above tax policies, there can be an inference made that there should be avoidance of conflict between the State government and the Central government as it can lead to the growth and development of the nation. Any nation’s economic image gives it a forte in situations of grouping them into developed, developing or the third world countries. The economy can be boosted through the process of imposition of tax that is fair enough for the states to implement and allocate their resources for the growth of their cities and development at the local level. Due to the irregular and unfair distribution of resources between the three groups, the local authorities at times run out of the necessities and the development suffers a major setback with no inclusion of its in the future as well. It is up to the Central Government of every federal nation as well as a call upon the developing nations to fund themselves so that the citizens benefit because the rural areas’ development led to the nation’s development as it is one of the basic units. The bodies that are functioning to keep a check and balance on the imposing of the taxes should have an eagle’s eye so that further conflicts and disputes could be prevented.
Notes:-
[1] The Indian Express, https://www.newindianexpress.com/business/2024/Feb/11/centre-state-tax-sharing-row-no-problem-with-formula-say-experts#:~:text=Recently%2C%20Karnataka%20Chief%20Minister%20Siddaramaiah,decrease%20of%20107%20basis%20points ( Dec. 14, 2024).
[2] Ibid.
[3] Sean Dougherty and Tatiana Mota, Navigating conflict and fostering co-operation in fiscal federalism, 48, OECDpublishing, 3, (2024), https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/07/navigating-conflict-and-fostering-co-operation-in-fiscal-federalism_98bc9f50/3d5c8c20-en.pdf .
[4] Confaz Fazenda, https://www.confaz.fazenda.gov.br/ (last visited Dec. 15, 2024).
[5] Australia National Cabinet, https://federation.gov.au/national-cabinet (last visited Dec. 15, 2024).
[6] de Biase & Dougherty, 2021
[7] De Mello & Ter- Minassian, 2022.
[8] INDIA CONST. art. 256.
[9] Ibid.
[10] Shapiro, J N, O Vanden Eynde, “Fiscal Incentives for Conflict: Evidence from India’s Red Corridor,” Review of Economics and Statistics, 105, 217- 225.
[11] International Monetary Fund, https://www.imf.org/external/pubs/ft/issues/issues27/ (last visited Dec. 15, 2024).
[12] Yes bank, https://www.yesbank.in/blogs/fixed-deposit/what-are-different-types-of-taxes-in-india#:~:text=The%20Central%20Government%20collects%20income,tax%2C%20property%20tax%2C%20etc (last visited Dec. 16, 2024).
[13] Berman,N, M Couttenier, D Rohner and M Thoeing, This mine is mine! How minerals fuel conflicts in Africa, American Economic Review, 107(6), 1564- 1610 (2017).
[14] Besley and T Person, The Origins of State Capacity: Property Rights, Taxation and Politics, American Economic Review,99(4), 1218-44 (2009).
[15]T Fetzer and SKyburz, Cohesive Insitutions and Political Violence, Review of Economics and Statics, 1-46 (2022).
[16] Shapiro, J N, O Vanden Eynde supra note at 9.
[17] VoxDev, https://voxdev.org/topic/institutions-political-economy/how-fiscal-policies-intensified-conflict-india (last visited on Dec. 16, 2024).
[18] INDIA CONST. art. 245, cl.2.
[19] Wallace Brothers and Company Limited V. income Tax Commissioner Bombay AIR 1948.
[20] Tata Iron & Steel Company Limited V. State of Bihar, AIR 1958 SC 452.
[21] Taxes on income other than agricultural income.
[22] All India Federation of Tax Practicers V. Union of India, AIR 2007 SC 2990.
[23] INDIA CONST. art. 277.
[24] State of Assam V. Labanya Probha Debi, AIR 1967 SC 1575.
[25] INDIA CONST. art. 276.
[26] INDIA CONST. art. 287.
[27] INDIA CONST. art. 288.
[28] INDIA CONST. art. 286, cl.3.
[29] Meaning: things being changed which are to changed.
[30] Hindustan Lever V. State of Maharashtra, AIR 2004 SC 326.
[31] Elel Hotels and Investment Limited V. Union of India, AIR 1990 SC 1664.
[32] Ibid.
[33] Chhotabhai Jethabhai Patel V. Union of India, AIR 1962 SC 1006.
[34] Rai Ram Krishna V. State of Bihar, AIR 1963 SC 1967.
[35] Orient Paper Mills V. State of Orissa, AIR 1979 SC 321.
[36] B. Krishna Bhatt V. State of Karnataka, AIR 2001 SC 1885.
[37] Belsund Sugar Co. Ltd. V. State of Bihar AIR 1999 SC 3125.
[38] NCAER, https://www.ncaer.org/ (last visited Dec. 17, 2024).
[39] Supriyo De, Direct Taxes Litigation Management and Alternative Dispute Resolution, 394, NIPFP Working Paper Series, 1-32 (2023), https://www.nipfp.org.in/media/medialibrary/2023/04/WP__394_2023.pdf
[40]ResearchGate,https://www.researchgate.net/figure/Taxing-Power-of-States-in-Selected-Federal-Countries_tbl2_228158339, (last visited Dec. 17, 2024).
[41] U.S. Department of the Treasury, https://home.treasury.gov/policy-issues/tax-policy#:~:text=Tax%20Expenditures%20describe%20revenue%20losses,as%20spending%20or%20regulatory%20programs (last visited Dec. 17, 2024).
[42]Sean Dougherty and Tatiana Mota, Navigating conflict and fostering co-operation in fiscal federalism, 48, OECD publishing , 58, (2024), https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/07/navigating-conflict-and-fostering-co-operation-in-fiscal-federalism_98bc9f50/3d5c8c20-en.pdf .
[43] Vermittlungsaucsschuss, https://www.vermittlungsausschuss.de/VA/DE/homepage/homepage-node.html (last visited Dec. 17, 2024).
[44] Sean Dougherty and Tatiana Mota, Navigating conflict and fostering co-operation in fiscal federalism, 48, OECD publishing , 55, (2024), https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/07/navigating-conflict-and-fostering-co-operation-in-fiscal-federalism_98bc9f50/3d5c8c20-en.pdf .
[45] German fiscal equalisation, Werner (2018).
[46] Sean Dougherty and Tatiana Mota, Navigating conflict and fostering co-operation in fiscal federalism, 48, OECD publishing , 42, (2024), https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/07/navigating-conflict-and-fostering-co-operation-in-fiscal-federalism_98bc9f50/3d5c8c20-en.pdf .
[47]Sean Dougherty and Tatiana Mota, Navigating conflict and fostering co-operation in fiscal federalism, 48, OECD publishing , 47, (2024), https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/07/navigating-conflict-and-fostering-co-operation-in-fiscal-federalism_98bc9f50/3d5c8c20-en.pdf .
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Author: Pritam Mehta, IXth Semester, Vth Year, Batch 2025, National Law University, Ranchi | Email: [email protected]
