Union and State Relations

(Article 245-263)

  1. Legislative Relations
  2. Administrative Relations
  3. Financial Relations

Article 262 Adjudication of disputes relating to waters of inter-state rivers or river valleys.

Article 263 Inter-State Council

II. Inter States Council

Inter–State Council is one of the important extra judicial bodies formed in 1990 on the recommendation of Sarkaria Commission. The Article 263 of Constitution empowers the President to appoint or establish an Inter–States Council for (1) enquiring into & advising upon inter–states disputes. (2) investigate & discuss on subjects in which States alone or States & Union have common interest.

The Council is headed by the Prime Minister & its members include 6 Cabinet Ministers & Chief Ministers of States.

III. Zonal Council

Zonal Councils were constituted on the recommendation of States Reorganization Commission 1956. In 1956, five zonal councils were established – North, South, East, West & Central. In 1971, the 6th Zonal Council was established, i.e. North–east Zonal Council. Its objectives are:–

(a) To promote collective approach &sorting out common problems of the member States.

(b) For providingcooperation for the implementation of development plans & progress.

Composition :  The Union Home Minister is the ex–officio chairman of all the Zonal Councils. Each Zonal Council includes the Chief Ministers of the member States & the Administrators of the Union Territories. The Chief Secretaries of the member states are also included.

Finance, Property,Contracts and Suits (Article 264-300A)

Article 266 Consolidated Fund of India

Article 267 Contingency Fund of India

Part XII

Inter-State Trade and Commerce(Article 301-307)

Article 301: Freedom of trade, commerce and intercourse.

Article 302: Power of Parliament to impose restrictions on trade, commerce and intercourse.

Article 303: Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce.

Article 304: Restrictions on trade, commerce and intercourse among states.

Article 305: Saving of existing laws providing for state monopolies.

Article 306: Power of certain States in Part B of the First Schedule to impose restrictions on trade and commerce (Re-pealed).

Article 307: Appointment of Authority for carrying out the purposes of Articles 301 to 304.

Part XIV

Services under the Union and the States – Article 308-323

Article 312: All India Services.

Article 315: Public Services Commissions for the Union and for the States.

On the recommendation of the Lee Commission in the year 1926 the first Public Service Commission was set up.

1935 Government of India Act provided for the establishment of a Federal Public Service Commission and Provincial Public Services Commission.

The Chairman and other members of the UPSC are appointed by the President of India.

At least half of the members are civil servants with at least 10 years experience in central or state services.

The tenure of each member is six years or up to the age of 65, whichever is earlier.

Members of the UPSC can be removed by the President on the charges of mis-behaviour, if these charges are upheld by the Supreme Court.

Distribution of Taxes

Taxes Belonging to Union Exclusively

  1. Customs
  2. Corporation
  3. Taxes on capital values of assets of Individuals and Company.
  4. Surcharge on income Tax.
  5. Fees in respect of matters in Union List.

Taxes Belonging to States Exclusively

  1. Land revenue.
  2. Stamp duty except in documents included in the Union List.
  3. Succession duty, estate duty and income tax on agricultural land.
  4. Taxes on passengers and goods carried on inland waterways.
  5. Taxes on lands and buildings, mineral rights.
  6. Taxes on animals and boats, road vehicles, on advertisements, electricity, luxuries and amusements, etc.
  7. Taxes on the entry of goods.
  8. Sales tax.
  9. Tolls.
  10. On matters in the State List.
  11. On profession, trade, etc. (not exceeding 2,500 per annum (List II).