(1) TAXES LEVIED BY THE CENTRE BUT COLLECTED AND APPROPRIATED BY THE STATES (Article 268): This category includes the following taxes and duties: (i) Stamp duties on bills of exchange,cheques, promissory notes,policies of insurance, transfer of shares and others. (ii)Excise duties on medicinal and toilet preparations containing alcohol and narcotics. The proceeds of these duties levied within any state do not form a part of the Consolidated Fund of India, but are assigned to that state. And SERVICE TAX LEVIED BY THE CENTRE BUT COLLECTED AND APPROPRIATED BY THE CENTRE AND THE STATES (Article 268-A): Taxes on services are levied by the Centre. But, their proceeds are collected as well as appropriated by both the Centre and the states. The principles of their collection and appropriation are formulated by the Parliament.