Report Scams
For a Better India
Updating protected services for a safer Bharat. Jai Hind.
Finance, Property, Contracts
(1) Union property is exempt from all state/local taxation, unless Parliament provides otherwise. (2) A pre-existing state/local tax on Union property that was already validly being levied before the Constitution's commencement can continue, until Parliament legislates otherwise.
As a matter of federal comity, states cannot simply tax central government property - this keeps the Union's assets free from being taxed by the various states in which they happen to be located, unless Parliament itself decides to allow it.
This is why a state cannot levy its own property tax on a central government building or Union-owned land within that state, without Parliament's specific authorisation.