constituent assembly of india debates (proceedings)- volume vii

(14) Not less than 50 per cent of the net proceeds of the excise on tobacco to be divided between
Provinces on the basis of estimated consumption. (Para 57)*
(15) Not less than 60 per cent. of the net proceeds from Succession and Estate Duties to be divided
between the Provinces on the following basis:-- Duties in respect of real property on the basis of
allocation of the property, and of the balance, three-fourths on the basis of the residence of the deceased
and one-fourth on the basis of population. (Para 58)*
(16) Net effect of the recommendations, to transfer annually a sum of the order of Rs. 30 crores from
the Centre to the Provinces. (Para 59)*
(17) A Finance Commission with a High Court Judge or ex-High Court Judge as Chairman and four
other members to be entrusted with the following functions:--viz. (a) allocation between the Provinces of
their shares of centrally administered taxes assigned to them; (b) to consider applications for grants-inaid
for Provinces and report thereon; (c) to consider and report on other matters referred to it by the
President. (Paras 66-67)*
(18) The Commission to review the position every five years, or, in special circumstances, earlier.
(Para 70)*
(19) A tax levied by the Centre under its residuary powers, not to ensure to the benefit of a nonacceding
State unless it agrees to accede to the Centre in respect of that subject. (Para 72)*
(20) Trading operations of Units, as also of Local Bodies, whether carried on within or without their
jurisdiction, to be liable to Central Income-tax or a contribution in lieu, but quasi-trading operations
incidental to the normal functions of Government not to be taxed. (Para 74)*
(21) The President to be empowered in an emergency to suspend or vary the normal financial
provisions in the Constitution. (Para 75)*
(22) A few minor changes suggested in regard to the procedure in financial matters. (Para 77)*
(23) No change to be made in respect of borrowing powers of Units. --(Paras 81-82)*
(24) Early arrangement to be made for the preparation of regular budgets and the maintenance of
appropriate accounts and audit by all acceding States. (Para 86)*
(25) States gradually to develop all the taxes in the Provincial Legislative List and correspondingly
give up taxes in the Federal List. (Para 87)*
(26) Maritime customs and excises in States to be taken over by the Centre, the States being
compensated therefore if necessary. (Paras 89 and 90)*
(27) The Indian Income-tax Act to be applied to all the federating States, and 75 per cent. of the net
proceeds attributable to the States to be divided between them. (Para 91)*
(28) A States Commission to be set up with five members with wide knowledge of the financial
administration of Provincial, Federal or State Governments. (Para 94)*
(29) The States Commission to examine the privileges and immunities etc. of States and to suggest
suitable compensation for the extinction of these rights and liabilities. (Para 94)*