Chapter V Chapter V

Taxation

Taxes which may be imposed.--A Committee may from time to time and subject to the provisions of this chapter and the rules made in this behalf, impose in the whole or any part of the town area one or more of the undermentioned taxes and fees with the previous sanction of Government :--

1. (a) a town rate in the form of a tax-
   • (i) upon all owners or occupiers of buildings or lands within the town area assessed according to the annual value of such buildings or lands ; provided that if any land is assessed under the Land Revenue Act, the amount of the cesses so assessed shall not exceed the tax assessed on such land under this Act : Provided further that the amount of tax on any land shall not exceed 6% per cent of the annual value of the land ;
   • (ii) upon all residents of the town area according to their circumstances ; provided that the amount of tax payable by any person according to his circumstances shall not exceed Rs. 500 ;
2. (b) a tax upon persons including in any calling, profession or art or carry on business in the town area ;
3. (c) a tax payable by the owner of any vehicle, animal used for riding, draught or burden or dogs which are kept within the limits of the town area : Provided that no tax shall be payable on vehicles, animals or dogs used only for agricultural purposes ;
4. (d) a modified octroi known as Dharat on articles imported within the town limits for consumption or use or sale, or a terminal tax on goods imported into or exported from the town limits ; provided that a terminal tax and octroi shall not be in force in the same town area at the same time ;
5. (e) Teh bazari ;
6. (f) lease of land to be used for town refuse ;
7. (g) dog tax ;
8. (h) tax on boats let out on hire ;
   • (i) entertainment tax ;
9. (j) slaughter house fee ;
10. (k) building fee ;
11. (l) a tax on timber imported into the town area for being sold, or for being stored for more than sixty days ;
12. (m) chhala tax ;
13. (n) thara tax ;
14. (o) tehi bazari ;
15. (p) water tax ;
16. (q) lighting tax ;
17. (r) such other tax or fee as may be approved by the Government.

Procedure in imposing taxes.—(1) A Committee may, at a special meeting, pass a resolution proposing the imposition of any tax or fee under section 24.

1. (2) When such a resolution has been passed, the Committee shall publish a notice in the Government Gazette and in such other manner as may be prescribed, describing the property or person to be taxed, the amount or rate of the tax or fee to be imposed and the system of assessment to be adopted.
2. (3) Any inhabitant objecting to the proposed tax or fee may, within 30 days from the publication of the said notice, submit his objection in writing to the Committee and the Committee shall, at a meeting, take his objection into consideration.
3. (4) If a Committee decides to modify or alter the tax or fee, it shall publish a notice indicating that they are in modification of those published for inviting objections.
4. (5) If no objection to the tax or fee is received within the said period, the Committee shall, after taking into consideration as aforesaid, submit its proposal to the Government with the objections received as aforesaid.
5. (6) When any proposal of a Committee has been sanctioned by the Government, the Government shall notify the imposition of the tax or fee and shall in the notification specify a date on which the tax or fee shall come into force.
6. (7) A notification in the Government Gazette of the imposition of a tax or fee under this Act shall be conclusive evidence that the tax or fee has been imposed in accordance with the provisions of this Act—
   • (a) a description of the property described for its identification ;
   • (b) An assessment list when confirmed by the Committee shall not be subject to revision except upon objection under sub-section
7. (3) or in pursuance of an order under the provisions of section 31.

Assessment of tax.—(1) Subject to any rules made in this behalf by the Government, the Committee established for any town area shall, as soon as may be, prepare a list of the persons liable to pay the tax imposed under items (a),

1. (b) and
2. (m) to
3. (q) of section 24 and the amounts to be paid respectively by such persons as and when it proceeds to impose tax on those items.

1. (2) Every assessment list prepared under sub-section
2. (1) shall, except in cases of taxes under items (a)
   • (ii) and (m), contain the following particulars :-

Duty of furnishing true information regarding liability to town area taxation.—Every person shall, on demand by an officer duly authorized by the Committee in this behalf, furnish such information as may be necessary in order to ascertain whether such person is liable to pay any town area tax ; and every hotel or lodging housekeeper shall, on demand made as aforesaid, furnish a list of all persons residing in such hotel or lodging house.

Power of entry for the purpose of valuation or taxation.—The Committee may authorize any person,—

1. (a) after giving 24 hours' notice to the occupier or, if there be no occupier, to the owner of any building or land at any time, between sunrise and sunset, to enter, inspect and measure any building for the purpose of valuation ;
2. (b) to enter and inspect any stable, coach-house or other place wherein there is reason to believe that there is any vehicle, vessel or animal liable to taxation under this Act or for which a licence has not been duly taken out.

Exemption from tax.—Subject to any rules made in this behalf by the Government, the Government may, by order, exempt in whole or in part from the payment of any tax imposed under this Act, any person or class of persons or description of property.

Publication of assessment list.—The Town Area Committee shall cause a copy of every assessment list prepared or revised as aforesaid and declared by the person authorised by the Committee in this behalf to be posted in a conspicuous place within the town area and shall cause a notice of the same to be maintained in such manner as it may prescribe.

Appeals from assessment of levy of tax.—(1) An appeal against the assessment or levy of any tax or fee under this Act shall lie to the [Government] and the decision of the [Government] shall be final and shall not be called in question in any Court.

1. (2) Court-fee shall not be payable on an appeal under sub-section
2. (1) of this section.
3. (3) An appeal under sub-section
4. (1) shall not be entertained unless the tax or fee has been paid within the specified period.

Payment of tax.—Tax shall be payable on such date as the Committee may, with the previous sanction given by the Government, determine or at such place within the town area :

Writ of demand Writ of demand.—On failure of a person to pay a tax or fee under this Act on or before the due date, the Chairman or in his absence the Vice-Chairman may cause a writ of demand to be served on the defaulter or delivered at or resident within the town area and addressed by name to him or to any other place where he may be residing, and charge of fee per writ of such amount as may be prescribed shall be levied and any expense incurred under this section.

Presentation of the Bill.—(1) ...

1. (2) Every such notice shall specify—
   • (a) the period for which, and
   • (b) the property, occupation or thing in respect of which the tax is claimed, and shall also give notice of the time within which an appeal may be preferred against such claim.
2. (3) If the person does not pay for the payment of the tax within the specified time either—
   • (a) pay the sum demanded in the notice, or
   • (c) prefer an appeal.
3. (4) Such declaration shall be conclusive evidence of its contents and shall not be called in question in any court.
4. (5) Declaration issued under sub-section
5. (3) shall be produced by the Chairman before Collector who shall recover the sum in the same manner as if it were arrears of land revenue.