Earmarked taxes called cesses are mandatory taxes specifically collected for earmarked public purposes. This article looks at the conceptual understanding of earmarking and then uses the Indian experience as a case study to examine how earmarking works in practice and the ensuing challenges. The...

The paper forms part of the book compiling papers presented at the MaiSymposium at WU in 2020. The paper discusses the meaning and scope of various terms in Article 2(1) and 2(2) of OECD MC, 2017 with a focus on taxes on income. The paper undertakes a historical analysis of various deliberations...

Earmarked taxes (called cesses) imposed by the Indian federal government contribute to approximately one-tenth of the federal tax revenues. An analysis of their budgetary treatment reveals many inconsistencies including whether proceeds are maintained in the consolidated fund or extra-budgetary...

The Indian federal government has been increasingly relying on cesses and surcharges as part of its budget. This report gives an overview of the background of taxation in India, an in-depth overview of legal and constitutional issues arising from use of cesses and surcharges and international...

Cess tax is a very important tool in the hands of the taxpayer to make the government accountable. A surcharge is more of a reserve taxing power in the hands of the government to garner funds exclusively for its own purpose. The two should not be confused

The Finance Act, 2015 amended §6(3)(ii) of the Income Tax Act, 1961 to introduce a new test for determining the residential status of companies. The new test is called the ‘Place of Effective Management' test for interpretation of which, the Central Board of Direct Taxes has recently issued...