Fixed charges and agreements for payment in lieu of taxes for water supplied.

(1) Fixed charges and agreements for payment in lieu of taxes for water supplied. (2) Power to fix a special rate in lieu of special sanitary cess. (3) Power to compound tax on vehicles or animals. (4) Recovery of sums claimed under this section. (4) Special provisions relating to certain taxes.

(1) A municipality may, instead of imposing a water-rate or where a water-rate has been imposed in individual cases, instead of levying a rate imposed in respect of the supply of water belonging to the municipality to or for use in connection with any private lands or buildings,-

(a) fix at rates not exceeding such as shall be specified in the rules in force under section 271, charges for such supply according to the quantity used, as ascertained by measurement; or

(b) arrange with any person on his application to supply on payment, periodical or otherwise, water belonging to the municipality in such quantities, or for such purposes, whether domestic, ornamental, or irrigational or for trade, manufacture or any other purpose, on such terms and subject to such conditions as it shall fix by agreement with such person :

Provided that -

(a) the meters, connection-pipes and all other works necessary for and incidental to such supply, and all repairs, extensions and alteration of such works shall be under the control of the municipality and the expense thereof shall, so far as it is not inconsistent with the rules or bye-laws of the municipality, to be defrayed by the persons liable for the charges or payments fixed in respect of such supply; and

(b) such supply of water shall be and shall be deemed to have been granted, subject to all such conditions as to the limit or stoppage thereof and as to the prevention of waste or misuse, as are prescribed in the bye-laws for the time being in force under section 275.

(2) Where a municipality has made provision for the cleansing of any factory, hotel or club or any group of buildings or lands used for any one purpose and under one management, it may, instead of levying in respect thereof any special sanitary cess imposed under this Chapter, fix a special rate and the dates and other conditions for periodical payments thereof; such rate, dates and conditions shall be determined either,

(i) in accordance with the rules for the time being in force under section 271, or

(ii) by written agreement with the person who would have been otherwise liable for the cess, provided that in fixing the amount of such rate proper regard shall be had to the probable cost to the municipality of the service to be rendered.

(3) Where a municipality has imposed a tax on vehicles or animals used for riding, draught or burden and kept for such use within the municipal borough, it may compound with the keeper of any livery-stable or of horses or vehicles kept for sale and hire for the payment of a lump sum for any period not exceeding one year at a time, in lieu of any amount which such keeper would otherwise have been liable to pay on account of the tax imposed as aforesaid.

(4) Every sum claimed by a municipality as due under sub-section (1) as charges, payments or expenses, or as a special rate under sub-section (2) or as a lump sum payable under sub-section (3), shall for the purposes of Chapter IX be deemed to be, and shall be recoverable in the same manner as, an amount claimed on account of a tax recoverable under the said Chapter :

Provided that nothing in this section shall affect the right or power of a municipality to contract with any person to supply for use beyond the limits of the municipal borough, at such rates and on such conditions as the municipality may think fit, any quantity of water belonging to the municipality but not required for the purpose of this Act.