Which tax is levied by the Central Government but

Solution

• This is based on the division of financial powers under the Indian Constitution (Seventh Schedule).
• Stamp Duties on documents  (except those specified in the Union List) fall under the  State List . However,  Stamp Duties on certain financial instruments  (like cheques, bills of exchange, etc.) are levied under the  Union List (Article 268) . As per Article 268, these duties are  levied by the Centre but collected and appropriated by the States  in which they are levied.
• Corporation Tax is levied and collected by the Centre.
• Taxes on Agricultural Income are levied and collected by States.
• Professional Tax is levied and collected by States (subject to a ceiling).