In 1956, 3rd May, the 6th amendment of Indian Constitution was introduced in the Lok Sabha. Its primary aim was to amend or change Articles 286, and 269 to remove anomalies in taxes for inter-State sales. The Act also sought to give effect to recommendations made by the Constitution (Tenth Amendment) Commission. These recommendations included removing the tax on the sale of commodities.
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6th Amendment Of Indian Constitution
The Sixth Amendment of the Constitution of India is known as The Constitution (Sixth Amendment) Act, 1956. The Amendment added new Entry 92-A, converting the topic of taxation of interstate sales to a Union topic. Both Entry 54 and Entry 92 List I were modified by this alteration. As a result of this amendment, the exclusive legislative and executive power of the Union was extended to include taxes on inter-state sales and purchases of items other than newspapers. These taxes were also imposed.
These taxes would be assessed and gathered in line with a law established by the Parliament, but they would not be put in the Consolidated Fund of India. Instead, it would be given to the States under whatever distributional rules that the Parliament might create. The 6th Amendment of Indian Constitution also gives Parliament the authority to establish the standards for establishing when a sale or purchase of goods occurs throughout inter-state trade or commerce
The sixth amendment of the Indian constitution passed by the parliament of India made several changes to the Constitution. The changes were made to Articles 269, and 286, and also to the 7th schedule of the Constitution of India. 7th schedule governs the Distribution of power between the center and states. This amendment changed how states taxed inter-state sales.
It gave the Union sole legislative and executive authority over taxes on interstate buying and selling goods other than newspapers.
The 6th Amendment of Indian Constitution gives Parliament the authority:
- to establish the standards for recognizing when a sale/purchase occurs throughout interstate trade or commerce.
- to establish guidelines for identifying whether a sale or purchase of commodities occurs outside of a State, during the importation or exportation of products into or out of Indian territory.
- to proclaim by law the goods that are particularly significant to interstate trade or commerce as well as to outline the limitations and requirements that any State law (made before to or following the Parliamentary law) would be susceptible to in regard to the system of collection, rates, and other aspects of the tax on the sale or purchase of those products.
|When and where it was introduced?||On 3rd May 1956, it was introduced in Lok Sabha.|
|Who introduced it?||The then Minister of revenue and civil expenditure, Mr. M.C. shah introduced it.|
|When it was commenced?||11 September 1956|
|No. of amendments made in this Act||3|
|Why Was It Introduced?||It was introduced to seek to amend articles 269, and 286 as well as the 7th Schedule of the Constitution to drop certain anomalies in taxes on interstate sales and purchases.|
|The object of the bill||The Bill was intended to install the Commission’s recommendations concerning amending the constitutional provisions about sales tax.|
|Which President assented to the bill?||In 1956 11th of September, Dr. Rajendra prasad assented to the bill.|
|Provisions have been amended||Article 286, Article 269, and 7th schedule of the Constitution of India|
|Amendment in 7th Schedule||Insertion of entry 92A catering taxes on inter-state commerce and trade excluding newspaper. According to the guidelines of entry 92A of List 1, entry 54 of the state list details, the taxes levied on the acquisition or sale of commodities other than newspapers.|
|Amendment in Article 269||The interstate selling of commodities other than newspapers is covered by new Article 269(1)(g). Clause (3) specifies that Parliament must determine what forms an interstate sale.|
|Amendment in Article 286||Introduction of Clause 286(2), stating parliament can enact a law to determine when the sale takes place under clause(1). Clause 286(3) was added, stating that any state law imposing a tax on goods deemed essential by the legislature is bound by the restrictions of the legislation enacted by the Parliament in this regard.|
|Consolidated fund of India||Such taxes would be imposed and collected in line with a law passed by Parliament, but they would not be a part of India’s Consolidated Fund. Instead, they would go to the States themselves in line with any distributional guidelines that may be established by that law.|
|Essential goods||Finally, clause (3) allows Parliament to declare the things that are necessary for societal existence. By clause (3) of the article, the Parliament enacted an Act in 1952 designating many items as vital to the survival of the society, including a variety of foodstuffs, iron, clothing, cattle feeds, steel, raw cotton, etc.|
According to Article 368 of the Constitution, the Bill was approved by the special majority of parliament. It was also adopted by the legislatures of more than half of the States named in Parts A and B of the First Schedule, as required by that article, by resolutions enacted by those legislatures before the Bill containing the amendment was submitted to the President for assent.
The Constitution (Sixth Amendment) Act, 1956, the formal name of the sixth amendment to the Indian Constitution. It introduced tariffs on interstate sales and purchases of products other than newspapers. These taxes wouldn’t be included in the Consolidated Fund of India. Even though these taxes would be assessed and collected in compliance with a parliamentary act.