Which of the following taxes is levied by the Union Government but collected and appropriated by the State Governments as per the Indian Constitution?

💡 Solution & Explanation

Article 268 of the Constitution specifies that stamp duties and duties of excise on medicinal and toilet preparations are levied by the Union Government but collected and retained by the respective State Governments within their jurisdictions. This financial arrangement helps augment state revenues through specific fiscal handles administered under central legislative frameworks. Corporation tax and customs duties are retained by the Centre after statutory devolution.