Doctrine Of Territorial Nexus means that the laws that are passed by the state legislature are not applicable outside of it unless there is a significant connection between the state and the object. 

Territorial means region, or location. Nexus means related to people, things, or events. According to this idea, it is critical for governments to have a sufficient geographical nexus. In the doctrine of territorial nexus, states are permitted to charge taxes on territory outside their border, if there is a legal nexus. 

Significance Of Doctrine Of Territorial Nexus.

· The Indian parliament has the power to pass laws that are relevant to India’s territory or issues that have an impact on the nexus of the nation.

· The states are subject to the territorial nexus doctrine and it is applied in tax matters.

· It is critical for governments and objects to have a significant geographical nexus.

· It is set down in Article 245 of the Indian constitution if there is a relationship or territorial nexus between the subject matter and enacting the law. 

Related Cases Of Doctrine Of Territorial Nexus

Tata Iron and Steel Company Vs Bihar State Tax Act 1958

· Bihar taxed all the sales of Tata Iron and Steel Company inside and outside Bihar.

· Goods are manufactured in Bihar the Supreme court there is a clear case of territorial nexus between the state and Tata Iron and Steel company that can be taxed by law. 

The Territorial Nexus has a broad application and it allows the law to extend beyond the nation’s borders.

Also Read

• What is the Doctrine of Harmonious Construction? | UPSC Polity
• What is the Doctrine of Eclipse? A Simple Explanation | UPSC Polity

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