Notice of demand and notice fee

Notice of demand and notice fee:

1. (1) Save as otherwise provided in this Act, if the amount of the property tax for which a bill has been presented under section 252 is not paid within thirty days from the presentation thereof or if the tax on advertisements is not paid after it has become due, the Chairman may cause to be served upon the person liable for the payment of the same, a notice of demand in such form as may be specified by the Executive Council.
2. (2) For every notice of demand which the Chairman causes to be served on any person under this section, a fee of such amount, not exceeding twenty-five rupees, as the Board of Councillors may determine shall be payable by such person and shall be included in the cost of recovery.
3. (3) If any person liable for payment of any tax under this Act does not, within thirty days of the service of the notice of demand, pay the sum due, he shall be deemed to be in default.
4. (4) When a person liable for payment of any tax under this Act is deemed to be in default under sub-section (3), such sum, not exceeding fifteen percent of the amount of the tax, as may be determined by the Board of Councillors may be recovered from him by way of penalty, in addition to the amount of the tax and the fee payable under sub-section (2).
5. (5) On the amount of a bill remaining unpaid after its presentation under sub-section (1) of section 252 simple interest shall be payable at such rate, not exceeding ten percent per annum, as may be determined by the Board of Councillors from time to time, on the said amount from the day next after the expiry of thirty days from the commencement of the quarter following that in which the bill is presented. Explanation: In calculating the interest payable under this sub-section, a fraction of a rupee in the amount of a bill on which interest is to be calculated shall:
   • (a) where it is less than 50 paise, be left out of account, and
   • (b) where it is not less than 50 paise, be taken as one rupee.
6. (6) The amount due as penalty or interest under this section shall be recoverable as an arrear of tax under this Act.