Chapter VIII Chapter VIII

Taxes to be imposed under this Act

Corporation may increase amount of budget grants and make additional grants. - On the recommendation of the Standing Committee the Corporation may from time to time during a financial year— (a) increase the amount of any budget grant under any head; (b) make an additional budget grant for the purpose of meeting any special or unforeseen requirement arising during the said year; (c) transfer the amount or portion of the amount of the budget grant under any head to the account of budget grant under any other head: Provided that— (i) due regard shall be had to all the requirements of this Act; (ii) in making any increase or any additional budget grant the estimated cash balance at the close of the year shall not be reduced below the sum of rupees one lakh and a half.

Municipal Taxation.

Conservancy tax on what premises to be levied [Section text not available in the official gazette publication.]

General tax on what premises to be levied [Section text not available in the official gazette publication.]

Exemption of property Tax [Section text not available in the official gazette publication.]

Payments to be made to Corporation in lieu of general tax by the Central Government or State Government, as the case may be [Section text not available in the official gazette publication.]

Primary responsibility for property taxes on whom to rest [Section text not available in the official gazette publication.]

Apportionment of responsibility for property tax when the premises assessed are let or sublet [Section text not available in the official gazette publication.]

Person primarily liable for Property tax entitled to credit, if he is a rent payer [Section text not available in the official gazette publication.]

Notice to be given to the Commissioner of all transfers of title of persons primarily liable to payments of property tax [Section text not available in the official gazette publication.]

Form of notice [Section text not available in the official gazette publication.]

Liability for payment of property taxes to continue in the absence of any notice of transfer [Section text not available in the official gazette publication.]

Notice to be given to the Commissioner of the erection of a new building, etc [Section text not available in the official gazette publication.]

Notice to be given to the Commissioner of demolition or removal of a building [Section text not available in the official gazette publication.]

It shall be in the discretion of the Commissioner to disallow any claim for refund of any property tax unless application therefor is made to him in writing within thirty days after the expiry of the half-year or quarter-year, as the case may be, to which the claim relates accompanied by the bill presented to the applicant under section 266 for the amount of the tax from which the refund is claimed.

The property tax on buildings and lands shall, subject to the prior payment of the land revenue, if any, due to the Government thereon, be a first charge upon the said buildings or land and upon the movable property, if any, found within or upon such buildings or lands and belonging to the person liable to such tax:

Provided that all the taxes and dues to the Corporation including the property tax payable to the Corporation [shall be liable to be recovered by way of attachment and sale of immovable property in such manner as may be prescribed.]

1. (1) Except as hereinafter provided, a tax at rates the maxima and minima whereof are specified in Schedule G shall be levied on vehicles, boats and animals which are kept for use in the City for the conveyance of passengers or goods in the case of vehicles and boats, and for riding, racing, draught or burden in the case of animals. Explanation:- A vehicle, boat or animal kept outside the limits of the city but regularly used within such limits shall be deemed to be kept for use in the city.
2. (2) The Corporation shall from year to year, in accordance with section 186 determine the rates at which such tax shall be levied.

1. (1) The tax leviable under section 239 shall not be levied in respect of:-
   • (a) vehicles, boats and animals belonging to the Corporation;
   • (b) vehicles, boats and animals vesting in the State to be used or intended to be used solely for public purposes and not used or intended to be used for purposes of profit;
   • (c) vehicles and boats intended exclusively for the conveyance free of charge of the injured, sick or dead;
   • (d) children's perambulators and tricycles.
2. (2) If any question arises under clause (b) of sub-section (1) whether any vehicle, boat or animal vesting in the State is or is not used or intended to be used for purposes of profit, such question shall be determined by the Government, whose decision shall be final.

The Commissioner may, with the approval of the Stand

It shall be in the discretion of the Commissioner to disallow any claim for refund of any property tax unless application therefor is made to him in writing within thirty days after the expiry of the half-year or quarter-year, as the case may be, to which the claim relates accompanied by the bill presented to the applicant under section 266 for the amount of the tax from which the refund is claimed.

The property tax on buildings and lands shall, subject to the prior payment of the land revenue, if any, due to the Government thereon, be a first charge upon the said buildings or land and upon the movable property, if any, found within or upon such buildings or lands and belonging to the person liable to such tax: Provided that all the taxes and dues to the Corporation including the property tax payable to the Corporation [shall be liable to be recovered by way of attachment and sale of immovable property in such manner as may be prescribed.]

The Commissioner shall cause tables of octroi for the time being leviable, specifying the rates at which and the articles on which the same are leviable to be printed in the Telangana Gazette and local daily newspapers and to be affixed in a conspicuous position at every place at which the same octroi is levied.

1. (1) No octroi shall be leviable on any article which, at the time of its importation, is certified by an officer empowered by the Government in this behalf to be the property of the State, to be used or intended to be used solely for public purposes and not to be used or intended to be used for purposes of profit.
2. (2) If any article on which octroi is payable is imported under a written declaration signed by the importer that such article is being imported for the purpose of fulfilling a specified contract with the Government or otherwise for the use of the Government the amount if any of the octroi paid thereon shall be refunded in full on production, at any time within six months after importation, of a certificate signed by an officer empowered by the Government in this behalf stating that the article so imported has become the property of the State, is used or intended to be used solely for a public purpose and is not used or intended to be used for purposes of profit.

Any article imported into the city for the purpose of immediate exportation may at the option of the importer be exempted from the levy of octroi if such article is conveyed direct from the place of import, to the place of export by such routes, within such time, under such supervision and on payment of such fees therefor as shall be determined by the Standing Committee.

1. (1) When any article upon which octroi has been paid shall be exported from the city, the full amount of the octroi so paid shall, subject to the provisions hereinafter contained, be refunded.
2. (2) Such refunds shall be paid under such bye-laws as shall from time to time be framed in this behalf.

²⁵⁷ Omitted

The entertainment tax shall be levied on all payments for admission to a theatre, cinema, carnival or to any other place of entertainment, at rates the maxima and minima whereof are specified in Schedule J.

The entertainment tax shall not be leviable in respect of any entertainment, performance or show-

1. (a) for admission to which no charge or only a nominal charge, as may be prescribed, is made;
2. (b) which is not open to the general public on payment;
3. (c) the proceeds of which

²⁶² Omitted

²⁶⁸ Omitted

Any article imported into the city for the purpose of immediate exportation may at the option of the importer be exempted from the levy of octroi if such article is conveyed direct from the place of import, to the place of export by such routes, within such time, under such supervision and on payment of such fees therefor as shall be determined by the Standing Committee.

(1) When any article upon which octroi has been paid shall be exported from the city, the full amount of the octroi so paid shall, subject to the provisions hereinafter contained, be refunded. (2) Such refunds shall be paid under such bye-laws as shall from time to time be framed in this behalf.

278[257. [XXX]]

1. (1) If the warrant is not in the meantime suspended by the Commissioner or discharged, the goods and chattels or vehicles or animals seized shall, after the expiry of the period named in the notice served under the last preceding section, be sold by order of the Commissioner, who shall apply the proceeds or such part thereof as shall be requisite in discharge of the sum due and of the costs of recovery.
2. (2) The surplus, if any, shall be forthwith credited to the municipal fund, but if the same be claimed by written application to the Commissioner within one year from the date of the sale, a refund thereof shall be made to the person in possession of the goods and chattels or vehicles or animals at the time of the seizure.

Fees for distraints For every distraint made under this Act a fee shall be charged at the rate set forth in Schedule N, and the said fee shall be included in the costs of recovery.

The Commissioner may, in his discretion, remit the whole or any part of any fee chargeble under the last preceding section or under sub-section (2) of section 268.

1. (1) If the tax on any vehicle or animal governed by the provisions of section 265, is not paid and a number-plate is not obtained and affixed to the vehicle within thirty days from the date on which the tax became due, the Commissioner may at any time thereafter seize and detain the vehicle and the animal, if any, used or employed in drawing the vehicle and, if the owner or other person entitled thereto does not within seven days from the date of such seizure and detention claim the same and pay the tax due together with the charges incurred in connection with the seizure and detention, the Commissioner may cause the same to be sold and apply the proceeds of the sale or such part thereof as shall be requisite in discharge of sum due and the charges incurred as aforesaid: Provided that if any person becomes the owner or obtains possession or control of any vehicle or animal on which the tax is due after the expiry of the said period of thirty days and the tax thereon has remained unpaid, he shall pay the same in the manner prescribed immediately after he becomes the owner or obtains possession or control of such vehicle or animal and on failure to do so the vehicle or animal shall, if it is not already seized and detained be liable to be seized and detained and sold as aforesaid: Provided further that no vehicle or animal used therefor shall be seized and detained under this section when actually employed in the conveyance of goods.
2. (2) The surplus, if any, remaining after the application of the proceeds of a sale under sub-section (1) in the manner provided therein shall be disposed of in the manner provided in sub-section (2) of section 272.

1. (1) If the sum due on account of any property tax remains unpaid after a bill for the same has been duly served on the person primarily liable for the payment thereof and the said person be not the occupier for the time being of the premises in respect of which the tax is due, the Commissioner may serve a bill for the amount on the occupier of the said premises, or, if there are two or more occupiers thereof, may serve a bill on each of them for such portion of the sum due as bears to the whole amount due the same ratio which the rent paid by such occupier bears to the aggregate amount of rent paid by them both or all in respect of the said premises.
2. (2) If the occupier or any of the occupiers fails within thirty days from the service of any such bill to pay the amount therein claimed, the said amount may be recovered from him in accordance with the foregoing provisions.
3. (3) No arrear of a property-tax shall be recovered from any occupier under this section, which has remained due for more than one year, or which is due on account of any period for which the occupier was not in occupation of the premises on which the tax is assessed.
4. (4) If any sum is paid by, or recovered from an occupier under this section, he shall be entitled to credit therefor in account with the person primarily liable for the payment of the same.

1. (1) If the Commissioner shall at any time have reason to belive that any person from whom any sum is due on account of any property-tax or tax on vehicles and animals, [XXX] is about forthwith to remove from the city, the Commissioner may direct the immediate payment by such person of the sum so due by him and cause a bill for the same to be served on him.
2. (2) If, on service of such bill, the said person does not forthwith pay the sum due by him, the amount shall be leviable by distress and sale in the manner hereinbefore provided, except that it shall not be necessary to serve upon the defaulter any notice of demand, and the Commissioner's warrant for distress and sale may be issued and executed without any delay.

Instead of proceeding against a defaulter by distress and sale as hereinbefore provided, or after a defaulter shall have been so proceeded against unsuccessfully or with only partial success any sum due or the balance of any sum due, as the case may be, by such defaulter, on account of a property-tax or of tax on vehicles and animals [XXX] may be recovered from him by a suit in any court of competent jurisdiction.

1. (1) No distraint shall be made, no prosecution shall be commenced and no suit shall be instituted in respect of any sum due to the Corporation on account of a property tax or tax on vehicles and animals or any other sum due under this Act after the expiration of the period of three years from the date on which distrant might have been made or after the expiration of a period of six years from the date on which prosecution might first have been commenced or after the expiration of nine years from the date on which a suit might have been first instituted, as the case may be, in respect of such sum.
2. (2) It shall be the duty and responsibility of the Commissioner to place before the Standing Committee, a list of arrears due to the Corporation under this Act which, if no action is taken within the period specified in sub-section (1), are likely to be time-barred, at least one year before the expiry of the said period stating the reasons for the delay in the recovery of such amount and requesting for the instructions or directions of the Standing Committee in regard to the recovery of such arrears:

Collection of Octroi how to be effected

1. (1) Octroi -
   • (a) may be collected under the orders of the Commissioner, by municipal officers and servants appointed in this behalf; or
   • (b) if the Commissioner thinks fit, may, with the approval of the Standing Committee, be formed by him for any period not exceeding one year at a time or be collected by or under the orders of any person whom the Commissioner, with the approval of the Standing Committee, appoints to be his agent for this purpose.
2. (2) Octroi shall be collected, and refunds of Octroi shall be made, at such places and be managed and controlled in such manner as the Commissioner with the approval of the Standing Committee shall from time to time direct.

Every person authorised under section 279 to collect or to refund Octroi shall have in respect of its collection or refund such powers and privileges and be subject to such liabilities in respect of anything done by him or for the purpose of collecting or refunding Octroi as may from time to time, be prescribed and in respect of the confiscation of goods in connection therewith such powers as are conferred by the foregoing provisions of this Act in respect of distress of movable property or vehicles, boats and animals.

The Commissioner may, with the approval of the Standing Committee from time to time, write off any sum due on account of any tax or of the costs of recovery of any tax which shall in his opinion be irrecoverable.

1. (1) An officer of the Local Government Service, the bill collector or other employee of the Corporation, entrusted with the collection of sums due to the Corporation under this Act, shall be liable for the loss, waste or misapplication of any money or other property owned by or vested in the Corporation, if such loss, waste or misapplication is a direct consequence of his neglect or misconduct and a suit for compensation may be instituted against him by the Standing Committee with the previous sanction of the Government or by the Government.
2. (2) No such suit shall be instituted after three years after the accrual of the cause of action.

1. (1) Subject to the provisions hereinafter contained, appeals against any rateable value or tax fixed or charged under this Act shall be heard and determined by the Judge.
2. (2) But no such appeal shall be heard by the said Judge, unless -
   • (a) it is brought within fifteen days after the accrual of the cause of complaint;
   • (b) a complaint has previously been made to the Commissioner under section 221 and such complaint has been disposed of;
   • (c) a complaint has been made, by the person aggrieved within fifteen days after the first received notice of any amendment made in the assessment book under section 225 and his complaint has been disposed of;
   • (d) in the case of an appeal against a tax, the amount claimed from the appellant has been deposited by him with the Commissioner. 282A. Omitted [XXX]

For the purposes of the last preceding section, cause of complaint shall be deemed to have occurred as follows, namely:—

1. (a) in the case of an appeal against a rateable value, on the day when the complaint made to the Commissioner under section 221 against such value is disposed of;
2. (b) in the case of an appeal against any amendment made in the assessment book, under section 255 during the financial year on the day when the complaint made to the Commissioner by the person aggrieved against such amendment is disposed of;
3. (c) in the case of an appeal against a tax, on the day when payment thereof is demanded or when a bill therefor is served.

Where in any appeal under section 282 the parties agree that any matter in difference between them shall be referred to arbitration, they may, at any time before a decision is given in such appeal, apply in writing to the Judge for an order of reference on such matter and on such application being made, the provisions of the Arbitration Act, 1940 relating to arbitration in suits shall, so far as they can be made applicable, apply to such application and the proceedings to follow thereon, as if the Judge were a Court within the meaning of that Act and the application were an application made in a suit.

1. (1) If any party to an appeal against a rateable value under section 282 makes an application to the Judge either before the hearing of the appeal, but before evidence as to value has been adduced, to direct a valuation of any premises in relation to which the appeal is made, the Judge may, in his discretion, appoint a competent person to make the valuation and any person so appointed shall have power to enter on, survey and value the premises in respect of which the direction is given: Provided that, except when the application is made by the Commissioner, no such direction shall be made by the Judge unless the applicant gives such security as the Judge thinks proper for the payment of the costs of valuation under this sub-section.
2. (2) The costs incurred for valuation under sub-section (1) shall be costs in the appeal, but shall be payable in the first instance by the applicant.
3. (3) The Judge may, and on the application of any party to the appeal, shall call as a witness the person appointed under sub-section (1) for making the valuation and, when he is so called, any party to appeal shall be entitled to cross examine him.

1. (1) If, before or on the hearing of an appeal under section 282, any question of law or usage having the force of law, or the construction of a document arises on which the Judge entertains reasonable doubt, the Judge may either of his own motion or on the application of the party to the appeal, draw up a statement of the facts of the case and the point on which doubt is so entertained and refer such statement with his own opinion on the point for the decision of the High Court.
2. (2) Where a reference is made to the High Court under sub-section (1), the provisions of Rules 2 to 5, both inclusive of Order XLVI in the First Schedule to the Code of Civil Procedure, 1908, shall so far as they can be made applicable, apply.

An appeal shall lie to the High Court from any decision of the Judge in an appeal under section 282 -

1. (a) by which a rateable value in excess of rupees two thousand is fixed, and
2. (b) upon a question of law or usage having the force of law or the construction of a document.

The costs of all proceedings in appeal under section 282 before the Judge including those of arbitration under section 284 and of valuation under section 285 shall be payable by such parties in such proportion as the Judge shall direct and the amount thereof shall, if necessary, be recoverable as if the same were due under a decree of the court.

1. (1) Every rateable value fixed under this Act against which no complaint is made as hereinbefore provided, and the amount of every sum claimed from any person under this Act on account of any tax, if no appeal therefrom is made as hereinbefore provided, and the decision of the Judge aforesaid upon any appeal against any such value or tax, if no appeal is made therefrom and the decision of the High Court upon appeal under section 287, shall be final.
2. (2) Effect shall be given by the Commissioner to every such decision.