Assessment and realization of taxes.

(1) Every tax levied in any area under any head of taxation mentioned in section 37 shall be deemed to be an addition to a tax levied under the same head in such area under the law for the time being in force governing the municipalities or gram panchayats, as the case may be, and all the provisions of such law relating to the incidence assessment or realisation of such tax or in any manner connected therewith shall be applicable accordingly:

Provided that the Government may direct that the said provisions shall apply subject to such modifications and restrictions, as may be prescribed.

(2) In particular, any such tax levied in any area within the jurisdiction of a gram panchayat under any head of taxation, other than land cess or local cess shall be realised by such authority as may be prescribed as an addition to a tax levied under the same head under the law for the time being in force governing gram panchayats. Out of the proceeds of the tax so realised, such percentage as may be prescribed shall be deducted towards the collection charges and the balance shall be paid by such authority into the Government treasury.