Constitution Section 279 — Calculation of “net proceeds”, etc

Part XII — FINANCE, PROPERTY, CONTRACTS AND SUITS — General

Constitutional

Summary

The term "net proceeds" refers to the total money collected from a tax or duty, minus the costs of collecting it. The Comptroller and Auditor-General of India is responsible for calculating and officially certifying the net proceeds for any area, and that certificate is considered final and cannot be challenged. Parliament or the President can make laws or orders to decide how these proceeds are calculated, when and how payments are made to states, how adjustments between financial years work, and any other related matters.

Official Text

(1) In the foregoing provisions of this Chapter, “net proceeds” means in relation to any tax or duty the proceeds thereof reduced by the cost of collection, and for the purposes of those provisions the net proceeds of any tax or duty, or of any part of any tax or duty, in or attributable to any area shall be ascertained and certified by the Comptroller and Auditor-General of India, whose certificate shall be final.

(2) Subject as aforesaid, and to any other express provision of this Chapter, a law made by Parliament or an order of the President may, in any case where under this Part the proceeds of any duty or tax are, or may be, assigned to any State, provide for the manner in which the proceeds are to be calculated, for the time from or at which and the manner in which any payments are to be made, for the making of adjustments between one financial year and another, and for any other incidental or ancillary matters.