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What does Appropriation of Tax mean?

edited February 2013 in Polity & Governance
''Service Tax is levied by the Center but Collected and Appropriated by the States"

I know about levy and collection but what's meant by Appropriation?
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Comments

  • Basically the Centre levies the tax.
    The proceeds of the tax are collected by the States and go to the States. The Centre doesn't get the collected tax. The States use the proceeds.
    Law

    "We've got to live, no matter how many skies have fallen."
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  • Both the tax definition and quantum is decided by the Union, while the state collects it and spends (appropriates) it.
    Currently Answering Questions on ForumIAS | Do not call me Sir, I am no Knight |
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  • Tax is used by the States for various purposes...that's what is meant by appropriation....
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  • edited February 2013
    ya...got it...

    thank you @alex, @Neyawn and @rajiv...
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  • under art 268-A service tax is collected and appropriated by both centre and states. the money does not go to states exclusively
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