Chapter XIV LEVY OF CESSES ETC. AND GRANT OF FINANCIAL ASSISTANCE BY GOVERNMENT

204. Levy of local cess etc,. - (1) The Government may levy a local cess at the rate equal to the land revenue on all items of land revenue. (2) The provision of the Karnataka Land Revenue Act, 1964 (Karnataka Act 12 of 1964) and the rule s, notifications and orders made thereunder shall be applicable for payment and recovery of the local cess levied under this section as if the local cess is in addition to the land revenue payable in respect of the land concerned. (3) The entire amount co llected under sub -section (1) from a panchayat area shall be passed on to the Grama Panchayat of that area

205. 1[Duty on transfer of immovable properties]1.- 1[[2[(1) The duty on transfers of immovable property shall be levied in the form of a surcharge at the rate of three percent of the duty imposed by the Karnataka Stamp Act, 1957 on instruments of sale, gift, mortguage, exchange and lease in perpetuity, of immovable property situated within the limits of the area of a Taluk Panchayat:]2 1. Substi tuted by Act 17 of 1996 w.e.f. 23.9.1996. Provided that no 1[duty on transfers]1 is leviable in respect of a mortgage where the amount secured by a mortgage does not exceed two thousand rupees : 150 Provided further that no 1[duty on transfers]1 shall be chargeable in respect of any instrument exempt from stamp duty under the Karnataka Stamp Act, 1957.]1 (2) The Government may, by notification, specify the r ate of 1[duty on transfers]1 leviable under sub -section (1), from time to time. (3) On the introduction of the 1[duty on transfers]1, section 28 of the Karnataka Stamp Act, 1957 shall be read as if it spe cifically required the particulars to be set forth separately in respect of the property situated within and without the limits of a taluk. (4) The entire amount collected under sub -section (1) as 1[duty on transfers]1 in respect of the lands and other properties situated in the taluk shall be passed on to the Taluk Panchayats in the State in proportion to the population of the taluk. (5) The Government m ay make rules for regulating collection of 1[duty on transfers]1 and the payment thereof.

206. Grant to Grama Panchayats. - 2[(1)]2 The Government shall make annually 1[a grant of such amount as it may no tify from time to time, but not less than five lakh rupees]1 to each Grama Panchayat which shall be utilised for meeting the electricity charges, maintenance of water supply schemes, sanitation and other welfare activities. No part of this grant shall be spent towards establishment expenses not related to the aforesaid purposes. 3[(2) Subject to the availability of funds, Government shall allocate such percentage of grants to the Panchayats as may be determined by State Finance Commission out of which twenty percent shall be Untied Grants. (3) The manner of allocation of grants towards Special Component Plan and Tribal Sub Plan to be based on population of scheduled caste and scheduled tribe in the Grama Panchayat area. ]3 2. Renumberd by Act 44 of 2015 w.e.f. 25.02.2016. 3. Inser ted by Act 44 of 2015 w.e.f. 25.02.2016.

207. Establishment grant to Taluk Panchayats and Zilla Panchayats. - The Government shall make a grant to every Taluk Panchaya t and Zilla Panchayat to cover the expenses of establishment at such scale as may be determined by it.

208. Discretionary grant. - The Government may make discretionary grant to the Grama panchayats, Taluk Panchayats and Zilla Panchayats for such purposes and on such terms and conditions as may be decided by it. CHAPTER XV PROPERTIES AND FUNDS OF PANCHAYATS