THE DRAFT CONSTITUTION 225
THE GAZETTE OF INDIA EXTRAORDINARY, FEB. 26,1948 257
Provided that the President may at any time after the expiration of five years from such com- mencement terminate or modify any such agreement if after consideration of the report of the Finance Commission he thinks it necessary to do so. 5
Calculation 259. (1) In the foregoing provisions of this of “net pro- Chapter, “net proceeds” means in relation to any ceed”, etc. tax or duty the proceeds thereof reduced by the cost of collection, and for the purposes of those provi- sions the net proceeds of any tax or duty, or of any 10 part of any tax or duty, in or attributable to any area shall be ascertained and certified by the Auditor- General of India, whose certificate shall be final.
(2) Subject as aforesaid, and to any other express provision in this Chapter, a law made by Parliament 15 or an order of the President may, in any case where under this Part of this Constitution 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 20 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.
Finance 260. (1) The President shall, at the expiration of 25 Commission. five years from the commencement of this Constitution and thereafter at the expiration of every fifth year or at such other time as the President considers necessary, by order constitute a Finance Commission which shall consist of a Chairman and four other 30 members to be appointed by the President.
(2) Parliament may, by law, determine the qualifications which shall be requisite for appoint- ment as members of the Commission and the manner in which they shall be selected. 35
(3) It shall be the duty of the Commission to make recommendations to the President as to—
(a) the distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them 40 under this Chapter and the allocation between the States of the respective shares of such proceeds;