Answer-Which tax is levied by the Central Government but collected and appropriated by the States?

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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.

Which tax is levied by the Central Government but collected and appropriated by the States?

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