• Talasila. Lakshmi

Abstract The Constitution allots separate legislative heads of taxation to the Centre and the States. The taxes enumerated in the Union List are leviable by the Centre exclusively while those mentioned in the State List are leviable by the States exclusively. The scheme of allocation of taxing powers between the Centre and the States based on the broad principle that the taxes of a local nature have been allotted to the States while taxes which having a tax base over more than one State or which should be levied on a uniform basis through out the country and not vary from state to state, or which can be collected more conveniently by the Centre rather than the States have been allotted to the Centre. A beneficial result of adopting such a methodology of allocation of taxing powers has been to eliminate all the problems of multiple and overlapping taxation which have arisen in an acute form in other federations because of concurrent taxing powers of the Centre and the States. In this Article I have started with federation powers of the Constitution of India in relation to taxation and its implications and effects of tax sharing powers of the Constitution. There after I have discussed the challenges, Amendments which have been made during the process of scheme of tax sharing between the Centre and the States.

Key Words: Levy, Allocation, Federal, Tax sharing, Finance Commission

"Levy of Tax- Constitutional Aspects on Tax Sharing and significance of Federal Powers", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 5, page no.227-232, May-2019, Available :http://www.jetir.org/papers/JETIR1905L32.pdf

"Levy of Tax- Constitutional Aspects on Tax Sharing and significance of Federal Powers", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 5, page no. pp227-232, May-2019, Available at : http://www.jetir.org/papers/JETIR1905L32.pdf