How is the 'vertical' and 'horizontal' devolution of taxes to the states decided? Highlighting the concerns raised by certain states regarding the devolution of taxes, suggest corrective measures.

Linked PYQ

You have done MBA from a reputed institution three years back but could not get campus placement due to COVID-19 generated recession. However, after a lot of persuasion and series of competitive tests including written and interview, you managed to get a job in a leading shoe company. You have ageur parents who are dependent and staying with you. You also recently got married after getting this decent job. You were allotted the Inspection Section which is responsible for clearing the final product. In first one year, you learnt your job well and was appreciated for your performance by the management. The company is doing good business for last five years in domestic market and this year it is decided even to export to Europe and Gulf countries. However, one large consignment to Europe was rejected by their Inspecting Team due to certain poor quality and was sent back. The top management ordered that ibid consignment to be cleared for the domestic market. As a part of Inspecting Team, you observed the glaring poor quality and brought to the knowledge of the Team Commander. However, the top management advised all the members of the team to overlook these defects as the management cannot bear such a huge loss. Rest of the team members except you promptly signed and cleared the consignment for domestic market, overlooking glaring defects. You again brought to the knowledge of the Team Commander that such consignment, if cleared even for domestic market, will tarnish the image and reputation of the company and will be counter-productive in the long run. However, you were further advised by the top management that if you do not clear the consignment, the company will not hesitate to terminate your services citing certain innocuous reasons. (a) Under the given conditions, what are the options available to you as a member of the Inspecting Team? (b) Critically evaluate each of the options listed by you. (c) What option would you adopt and why? (d) What are the ethical dilemmas being faced by you? (e) What can be the consequences of overlooking the observations raised by the Inspecting Team?