Chapter VIII Chapter VIII

Taxes and Fees

111[(1) Every Panchayat shall, in such manner and subject to such exemptions as may be prescribed and not exceeding the maximum rate specified in Schedule – III, levy tax upon building and lands which are not subject to agricultural assessment, within the limits of the Panchayat area and shall revise rate of such tax once in every three years by minimum increase of 10% thereon: Provided that where an owner of the building or land has left the Panchayat area or cannot otherwise be found, the occupier of such building or land shall be liable for the tax leviable on such owner.]

112[(1-A) The tax as aforesaid shall also be levied on building constructed without authorization within the limits of Panchayat area: Provided that nothing in this sub-section shall amount to regularization of unauthorized construction of such building:

Provided further that nothing in this sub-section shall prevent any competent aurhority from taking any action against such building in accordance with law.]

1. (2) A Panchayat may levy water rate for supply of water for drinking and other purposes.
2. (3) A Panchayat may also levy all or any of the following tax and fees at such rates as the Panchayat 113[shall] determine but not exceeding the maximum specified in Schedule III and in such manner and subject to such exemptions as may be prescribed, namely:—
   • (a) tax on entertainment other than cinematograph shows;
   • (b) tax on vehicles, other than motor vehicles; (c) 114[***]
   • (d) pilgrim fee on persons attending the jatras, festivals, etc., where necessary arrangement for water supply, health and sanitation are made by the Panchayat;
   • (e) market fee on persons who expose their goods for sale in any market place;
   • (f) fee on the registration of cattle brought for sale in any market place;
   • (g) fee on buses and taxies and auto-stands provided adequate facilities are provided for the travellers by the Panchayat 115[...]
   • (h) fees on grazing cattle in the grazing lands 116[;] 117[(i) lighting tax;
   • (j) drainage tax;
   • (k) tax on profession, trades, calling and employment;
   • (l) fees for sale of goods in melas, fairs and festivals; (m) {garbage disposal tax ;}] 119[(n) 120[***].

1. (1) When any tax, cess, rate or fee becomes due, a Panchayat shall, with the least practicable delay, cause to be presented to the person liable for the payment thereof, a bill for the amount due from him, specifying the date on or before which the amount shall be paid.
2. (2) If any person fails to pay any tax or fee or any other sum due to the Panchayat under this Act or the rules or bye-laws on or before the specified date of payment, the Panchayat shall cause a notice of demand in the prescribed form to be served on the defaulter.
3. (3) The presentation of every bill under sub-section (1) and the service of every notice of demand under sub-section (2), shall be effected by the Secretary or an officer duly authorized by him in this behalf,—
   • (a) by giving or tendering the bill or notice to the person to whom it is addressed; or
   • (b) if such person is not found, by leaving the bill or notice at his last known place of abode, if within the limits of the Panchayat area or by giving or tendering the bill or notice to some adult member or servant of his family; or
   • (c) if such person does not reside within the limits of the Panchayat area and his address elsewhere is known to the person directing the issue of the bill or notice then by forwarding the bill or notice to such person by registered post, under cover bearing the said address; or
   • (d) if none of the means as aforesaid be available then by causing the bill or notice to be affixed on some conspicuous part of the building or land, if any, to which the bill or notice relates.
4. (4) If the tax, rate, fee or other amounts for which a notice of demand has been served is not paid within thirty days from the date of such service, the Panchayats may recover the amount due alongwith a penalty of ten percent of the sum due, by distraint and sale of the movable property of the defaulter in the prescribed manner.
5. (5) Fees for,—
   • (a) every distraint made under sub-section (4);
   • (b) every notice of demand issued under sub-section (2);
   • (c) the cost of maintaining any live-stock seized under sub-section (4), shall be chargeable at such rates as may be prescribed.
6. (6) Notwithstanding anything contained in the foregoing sub-section, any tax, rate or fee payable to a Panchayat shall be recoverable as an arrear of land revenue.

Subject to such rules as may be prescribed, any person aggrieved by the assessment, levy or imposition of any tax, rate or fees under section 153, may appeal to the prescribed authority, whose decision shall be final.

1. (1) Subject to such rules as may be prescribed, when the owner of any industry or factory established in any Panchayat area provides sanitary and other amenities for the building and land used for the industry or as factory quarters for employees and for other purposes connected with undertaking, the Panchayat may in lieu of the taxes, rates or fees payable under this Act in respect of such buildings and lands receive such amount annually as may be agreed upon between the Panchayat and such owner.
2. (2) Where no such agreement as is referred to in sub-section (1) can be reached, the matter may be referred to the Zilla Panchayat and the Zilla Panchayat may, after giving to the Panchayat and the owner concerned an opportunity of being heard, determine the amount payable by such owner and such determination shall be binding on the Panchayat and such owner.
3. (3) The Zilla Panchayat may by notification direct that the provision of sub-section (1) shall be applicable to such other establishments as may be specified in such notification.

The tax, rate, fee or other amount payable to the Panchayat may be collected by such agency as the Panchayat may appoint in this behalf, provided that it shall be lawful for a Panchayat to lease the right to collect any tax, rates, fees or other amount that may be imposed under this Act, by public auction or by tender, subject to the rules prescribed and the amount due under such lease shall be recoverable in the manner provided in this Chapter.