I think u are right Prem. let me explain with an example. Tata makes cars. They buy raw material from outside. pays central taxes on importing the parts in ports (anywhere, not only Munbai) He sells major chunk of cars in Delhi & North (assumed). A major chunk of tax is collected from buyer including Octroi, Sales tax and everything else which is paid by Delhi buyer. Plus he got his earning from the price of car in Delhi. Now if he lives in Mumbai, he declares his profit and tax in Mumbai. This does not mean that Mumbai generated that revenue for Indian Govt. Mumbai politicians have spreaded this misinformation for their own reasons.
