constituent assembly of india debates (proceedings)- volume vii

2. Corporation Tax. [Items
46 in Federal Leg. List]
3. Central Excise duties (on
tobacco and other goods except
alcoholic liquors. (item 46)
Orissa
East Punjab
Assam
Wholly Federal Madras
There is provision for sharing in
full for in part [Sec. 140 (1) ] but
not so far shared.
future none of the poorer
provinces should get an amount
lower that that payable on the
basis of population. The
distribution should be governed
not by residence of the assessees
but by the place where the
income is earned. The basic
factors must be population and
the place where the income is
earned. If any modifications are
to be made they must be done
with the object of assisting the
financially poorer provinces
among which Bihar is at the very
bottom.
Distribution of 50 % may
continue as at present but the
percentages should be revised
taking into consideration the
factor also of the state of
development in addition to those
of corporation and residence used
by Sir Otto. Due weightage to be
given to undeveloped provinces.
Should the provincial share
exceed 12 crores, 75% of the
exceeds may be left to the
discretion of the Central
Government.
After the partition the East
Punjab Province faces a deficit of
about 3 crores : its share of
income tax proceeds should be
very appreciably increased to
meet the deficit fully.
75 % . There should be a drastic
revision of the shares of
provinces in income tax receipts
having regard to the facts that
Sind and N. W. F. P. go out that
the amounts now available in the
divisible pool have enormously
exceeded the original estimate
and some provinces are now
getting , as a result income tax
amounts exceeding the entire
revenues of some others.
At least 50 % of the net proceed
to go to provinces.
Bombay 75 % for provinces.
U. P
C. P
50 % for provinces on population
basis.
C. P. suggests the inclusion of
Corporation tax and taxes on
Capital assets in taxes on income
for distribution.
Madras Should be entirely provincialized.
Bombay
Should be provincialized or not
less than 50 % of the net
proceeds on each producing unit
to be allotted to that unit.
U. P. Should be entirely provincialized