Section 2

Amendment status not verified — confirm the current text below against the official source.

Substituted by Act 3 of 1996, Section 8, w.e.f. 30-8-96. * The section came into force on the 26th day of January 1974 vide Extraordinary Gazette No.11, dated 17th January 1974. 237 CHAPTER – VII MUNICIPAL ESTABLISHMENT *111. Appointment of municipal health officer and municipal engineer.- (1) For any municipality the Government may, after consulting the council concerned, sanction a post of municipal health officer and a post of municipal engineer: Provided that in the case of a municipality which has an annual income of less than three lakhs of rupees from ordinary receipts, the Government may, without sanctioning the post of municipal health officer or a municipal engineer, appoint any officer of the Public Health Department or Public Works Department on such terms as may be specified by the Government in this behalf to exercise the powers and discharge the functions of a municipal health officer or a municipal engineer, as the case may be: Provided further that when the officer of the Public Health Department or the Public Works Department is appointed to exercise the powers and discharge the functions under this Act, such of the powers and functions as are exercisable by any authority under this Act or any other law for the time being in force in consultation with the municipal health officer or municipal engineer shall be exercised by such authority after consultation with the concerned officer appointed under the foregoing proviso: Provided also that where is no municipal health officer or municipal engineer, the Commissioner shall exercise the powers and discharge the functions of such officer. (2) The municipal health officer or municipal engineer shall devote his whole time to the duties of his office and shall not undertake any work unconnected with the municipality except with the sanction or under the direction of the Government. (3) All the appointments to posts sanctioned under sub-section (1) shall be made by the Government. (4) All the officers appointed under sub-section (3) shall, save as otherwise provided in the rules relating to the discipline and conduct of those officers, be deemed for all purposes as officers of the council and shall in the exercise of the powers and discharge of the functions under this Act be subject to such control and direction of the Chairman or Commissioner as may be prescribed. * The section came into force on the 26th day of January 1974 vide Extraordinary Gazette No.11, dated 17th January 1974. 238 (5) The Government shall pay out of the Consolidated Fund of the Union territory salaries, allowances, leave allowances, pension and contribution, if any, towards the provident fund or pension-cum-provident fund or pension-cum- gratuity of every officer appointed by the Government under sub-section (3). *112. Government’s Power to regulate the method of recruitment, conditions of service, etc., of officers appointed under section 111.- (1) The Government shall have power.- (a) to make rules to regulate the classification and method of recruitment, conditions of service, pay and allowances, and disciplinary conduct of the officers appointed under section 111; (b) to recover from the council concerned the whole or such proportion of the salary and allowances paid to any such officer and such contribution towards his leave allowance, pension or provident-cum-pension fund or pension-cum-gratuity fund of such officer as the Government may, by general or special order, determine. (2) The Government may at any time withdraw any officer appointed under section 111 and appoint another in his place and it shall withdraw such officer if such withdrawal is recommended by resolution passed at a special meeting called for the purpose and supported by the votes of not less than three-fifths of the sanctioned strength of the council. *113. Provincialisation of any class of municipal officers or servants.- (1) Notwithstanding anything contained in this Act, the Government may, by notification, constitute any class of officers or servants of municipal councils into a common service for the Union territory. Explanation. -- Where such a common service is constituted under this section, the Government shall have power to include into it any class of officers or servants of local authorities established under any law for the time being in force. * The section came into force on the 26th day of January 1974 vide Extraordinary Gazette No.11, dated 17th January 1974. 239 (2) Upon the issue of a notification under sub-section (1), the Government shall have power to make rules to regulate the classification, methods of recruitment, including the manner of and the terms and conditions under which existing officer or servant shall be absorbed into, conditions of service, pay and allowances and discipline and conduct of the common service thereby constituted and such rules may vest jurisdiction in respect of all or any of such matters in relation to such cadre in the Government or in such other authority or authorities as may be specified therein. (3) If any common cadre is constituted under sub-section (1), each council shall every year contribute out of its revenue such sum on account of its share of the expenditure on any officer or servant belonging thereto posted to serve under it incurred or to be incurred in that year for its purposes as the Government may by general or special order determine. Explanation. – In this section and in section 144 “existing officers” or “existing servants” means an officer or servant of an existing council within the meaning of section 506. *114. Establishment of the municipal council.- (1) The council may with the sanction of the Government create such posts of officers and servants other than those specified in sections 111 and 113 as it shall deem necessary for efficient execution of its duties under this Act. (2) The Government may make rules to regulate the qualifications, pay, allowances, discipline and conduct and other conditions of service, the method of recruitment, and authority which may appoint any such officers and servants of municipal councils. (3) The council shall, subject to the approval of the Government, decide the manner in which and the terms and conditions subject to which the existing officers and servants shall be absorbed in the posts created under sub-section (1). (4) Subject to any rules which the Government may make in this behalf under sub-section (2), appointments to all posts under the municipal council the pay or the maximum pay of which exceeds one hundred rupees per mensem shall be made by the municipal council and appointments to all other posts under the municipal council shall be made by the Commissioner. * The section came into force on the 26th day of January 1974 vide Extraordinary Gazette No.11, dated 17th January 1974. 240 *115. Power of Government to transfer officers and servants of municipalities.- (1) Notwithstanding anything contained in this Act, the Government shall have power to transfer any officer or servant of a municipality to the service of any other municipality. (2) The Government shall have power to issue such general or special directions as it may think necessary for the purpose of giving due effect to transfers made under sub-section (1). *116. Power to grant leave to establishment.- The Commissioner may grant leave to all municipal officers and other employees of the municipality. *117. Special provisions regarding officers and other employees of the Government lent to council.- (1) (a) The Government may, on the application of any municipal council, place the services of any of its officers or other employees at the disposal of the council to be employed by it for the purposes of this Act. (b) the council shall pay any officer or other employee so employed the salary he may be entitled to receive under the rules of the service to which he belongs, and shall also make any contribution towards pension and leave allowances of such servant as may be required, by the conditions of his service under the Government, to be paid by him or on his behalf. (2) If such officer or other employee while employed by the municipal council or if any other servant of the council does any work for the Government, the Government shall contribute to the municipal fund so much of the salary of such officer or other employee as the Government may consider to be an equivalent for such work. (3) No officer or other employee employed by a municipal council shall without the previous consent of the Government, be dismissed or removed from such employment or placed under suspension during such employment. (4) The officers and other employees employed by municipal council shall be entitled to leave and other privileges in accordance with the regulations applicable to the department of the general administration to which they belong. * The section came into force on the 26th day of January 1974 vide Extraordinary Gazette No.11, dated 17th January 1974. 241 CHAPTER – VIII Taxation *118. Taxes to be imposed.- (1) (a) Subject to any general or special order which the Government may make in this behalf, every municipal council shall impose, for the purposes of this Act, the following taxes, namely: - (i) a property tax; (ii) a profession tax; (iii) a tax on advertisements other than advertisements published in the newspapers. (b) Every municipal council shall, with the sanction of and subject to such rules as may be prescribed by the Government, impose.- (i) a duty on certain transfers of immovable property in the form of additional stamp duty in accordance with the provisions of section 158; (ii) a tax on entertainments. (2) Subject to the previous sanction of the Government and to any general or special order which the Government may make in this behalf every municipal council may levy for the purposes of this Act, any of the following taxes, namely: -- (a) a duty on toddy trees in the form of additional excise duty on toddy trees; (b) a tax on any building or land within municipal limit used for anyone or more of the purposes specified in Schedule III, which shall not exceed five per cent of the tax levied under section 121 and shall be in addition to the fees charged for any licence granted under sub-section (1) of section 355 and the property tax; (c) a toll on animals and vehicles; * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 242 (cc) a fee on every motor vehicle entering into any place of pilgrimage or tourist resort in any municipal area for any specified period or throughout the year, and different rates may be specified for different types of motor vehicles having regard to the local conditions and services rendered by the municipality during such period Explanation—For the purpose of this section, the expression “motor vehicle” shall have the same meaning as assigned to it under section 2 of the Motor Vehicles Act, 1988 (Central Act 59 of 1988)]; (d) any other tax which the Legislature of the Union territory has power to impose in the Union territory. (3) The taxes specified in sub-sections (1) and (2) shall be assessed and levied in accordance with the provisions of this Act and the rules made thereunder. * 119. Resolution of council determining to levy tax.- Any resolution of a municipal council determining to levy a tax shall specify the rate at which any such tax shall be levied and the date from which it shall be levied: Provided that before passing a resolution imposing a tax for the first time or increasing the rate of an existing tax, the council shall publish a notice in at least one newspaper, published in the language of the locality having circulation in the municipality, on the notice-board of the municipal office and in such other places within municipal limits as may be specified by the council and by beat of drum, of its intention, fix a reasonable period not being less than one month for submission of objections or suggestions and consider the objections or suggestions, if any, received within the period specified: Provided further that any resolution abolishing an existing tax or reducing the rate at which a tax is levied shall be immediately reported to the Government and in municipalities which have an outstanding loan either from Government or from the public or any other local authority, such abolition or reduction shall not be carried into effect without the previous sanction of the Government: This clause has come into force with effect from 16.5.2002 vide Act No.9 of 2002 published in the Extraordinary Gazette Part II No.27 dated 22.5.2002. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 243 Provided also that, where any resolution under this section has taken effect for a particular half-year, no proposals to alter the rates or date fixed in such resolution so far as that half-year is concerned shall, without the sanction of or direction from the Government, be taken into consideration by the council. * 120. Notification of new taxes.- When a municipal council shall have determined subject to the provision of section 118 to levy and tax for the first time or at a new rate the Commissioner shall forthwith publish a notification in the official gazette and by beat of drum specifying the rate at which, the date from which and the period, if any, for which, such tax shall, be levied. The property tax * 121. Description and classes of property tax.- (1) If the council by resolution determines that a property tax shall be levied, such tax shall be levied on all buildings, and lands within municipal limits save those exempted by or under this Act or any other law. The property tax may comprise -- (a) a tax for general purposes; (b) a water and drainage tax to provide for expenses connected with the construction, maintenance, repairs, extension or improvement of water or drainage works heretofore provided or hereafter to be provided; (c) a lighting tax to provide for expenses connected with the lighting of the municipality by gas or electricity; and (d) a scavenging tax to provide for expenses connected with removal of rubbish, filth or the carcasses of animals from private premises and cleaning of latrines and cess-pools therein: Provided that where the water and drainage tax is levied, the municipal council shall declare what proportion of the tax is levied in respect of water works and the remainder shall be deemed to be levied in respect of drainage works and the proportion so declared shall also be specified in the notification published under section 120. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 244 (2) Save as otherwise provided in this Act, and subject to the provisions of section 118 and in accordance with the rules made by the Government in this behalf, these taxes shall be levied at such percentages of the annual value of buildings, or lands which are occupied by, or adjacent and appurtenant to, building or both, as may be fixed by the municipal council: Provided that the aggregate of such percentages shall not exceed thirty per cent of the annual value of lands and buildings. (3) (i) The municipal council shall, in the case of lands which are not used exclusively for agricultural purposes and are not occupied by, or adjacent and appurtenant to, buildings, levy these taxes at such percentage of the capital value of such lands not exceeding six per cent of such capital value or at such rates with reference to the extent of such lands as it may fix. (ii) The capital value of such lands shall be determined in such manner as may be prescribed. (4) (a) The municipal council shall, in the case of lands used exclusively for agricultural purposes, levy these taxes at such proportions as it may fix, of the annual value of such lands as calculated in the manner specified in clause (b). (b) (i) In the case of lands held direct from Government on lease or licence, the assessment, lease amount, royalty or other sum payable to the Government for the lands together with any water rate which may be payable for their irrigation, shall be taken to be the annual rent value. (ii) In the case of lands held wholly or partially free from assessment, the full assessment which such lands would bear, together with any water-rate which may be payable for their irrigation, shall be taken to be the annual rental value; and such full assessment and water-rate shall be determined by the Government. 245 (iii) In the case of lands held on any other tenure, the annual rent payable to the landholder, sub-landholder or any other intermediate landholder, holding on an under- tenure, created, continued or recognized by a landholder or sub-landholder, as the case may be, by his tenants, together with any water-rate which may be payable for their irrigation, shall be taken to be the annual rental value; and where such lands are occupied by the owner himself or by any person holding the same from him free of rent or at a favourable rent the annual rental value shall be calculated according to the rates of rent usually paid by occupancy ryots for ryoti lands in the neighbourhood with similar advantage together with any water-rate which may be payable for the irrigation of the lands so occupied. (iv) In the case of lands, the assessment of rent of which is paid in kind, the annual rental value shall be calculated according to the rates of rent established or paid for neighbouring lands of a similar description and quality together with any water-rate which may be payable for the irrigation of the lands first mentioned. (c) If such lands be occupied by tenants, the municipal council shall levy the taxes in equal shares, from the landlord and the tenant respectively. (d) Subject to any rules which the Government may make in this behalf, the Commissioner shall have power to require the staff of the Revenue Department to collect the taxes due to the municipal council in respect of such lands on payment of such remuneration not exceeding five per centum of the gross sum collected as the Government may, by general or special order, determine. *122. Appointment of authorised valuation officer.- (1) The Government may, by notification, (a) appoint such officers including those of Revenue and Public Works Departments of the Government to be authorised valuation officers for the purposes of this Act; and * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 246 (b) define the municipal area within which such officers shall exercise the powers conferred and perform the duties imposed upon them by or under this Act. (2) Each council shall every year pay to the Government such sum out of its revenue for the services rendered or to be rendered in that year by any authorised valuation officer or officers for its purposes, as the Government may, by general or special order, determine. (3) Till such time as an authorised valuation officer is appointed for any municipal area, the powers conferred and duties imposed by or under this Act on such officer shall in that area be exercised and performed by the Commissioner. * 123. Method of assessment of property.- (1) Every building shall be assessed together with its site and other adjacent premises occupied as an appurtenance thereto unless the owner of the building is a different person from the owner of such site or premises. (2) The annual value of land and buildings shall be deemed to be the gross annual rent at which they may reasonably be expected to let from month to month or from year to year less a deduction, in the case of buildings, of **[fifteen per cent] of that portion of such annual rent which is attributable to the buildings alone, apart from their sites and adjacent lands occupied as an appurtenance thereto and the said deduction shall be in lieu of all allowances for repairs or on any other account whatever: Provided that.- (a) in the case of.- (i) any State Government, or (ii) any building of a class not ordinarily let, the gross annual rent of which cannot, in the opinion of the Commissioner, be estimated, the annual value of the premises shall be deemed to be six per centum of the total of the estimated value of the land and the estimated present cost of erecting the building after deducting for depreciation a reasonable amount which shall in no case be less than ten per centum of such cost; * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. ** These terms have come into force with effect from 17.11.2005 vide Act No.6 of 2005 published in the Extraordinary Gazette Part II No.69 dated 18.11.2005. 247 (b) machinery shall be excluded from valuations under this section; and (c) in the case of the buildings and lands referred to in clauses (a) to (g) and (i) of sub-section (1) of section 124, if rent is covered for such buildings and lands by the owner thereof, their annual value shall be deemed to be the amount of rent actually payable to the owner in respect thereof for twelve months, less a deduction, in the case of buildings only, of ten per centum of such amount in lieu of allowance for repairs or any other account whatever. (3) The Government shall have power to make rules regarding the manner in which, the person or persons by whom and the intervals at which, the value of the land, the present cost of erecting the building and the amount to be deducted for depreciation, shall be estimated or revised, in any cases or class of cases to which clause (a) of the proviso to sub-section (2) applies. * 124. General exemptions.- (1) The following buildings and lands shall be exempt from the property tax.- (a) places set apart for public worship and either actually so used or used for no other purpose; (b) choultries for the occupation of which no rent is charged and choultries the rent charged for the occupation of which is used exclusively for charitable purposes; (c) buildings used for educational purposes including hostels, public buildings and places used for the charitable purpose of sheltering the destitute or animals and libraries and play grounds which are open to the public or which are attached to any educational institution. (d) such ancient monuments protected under the Ancient Monuments Preservation Act, 1904 (Central Act 7 of 1904), and such ancient and historical monuments declared by or under the Ancient Monuments and Archaeological Sites and Remains Act, 1958, (Central Act 24 of 1958), to be of national importance or parts thereof, as are not used as residential quarters or as public offices; * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 248 (e) charitable hospitals and dispensaries; (f) hospitals and dispensaries maintained by railway administration; (g) burial and burning grounds included in the book kept at the municipal office under the provisions of this Act; (h) buildings or lands vesting in or belonging to the municipal council; (i) any irrigation work vesting in the Government including the bed of a water-course, or any building or land adjacent and appertaining to such irrigation work; Government lands set apart free for recreation purposes; and all such other Government property being neither building nor land from which in the opinion of the Government any income could be derived as may from time to time be notified by the Government: Provided that nothing contained in clauses (a), (c), (e) and (f) shall be deemed to exempt from property tax any building or land for which rent is payable by the person or persons using the same for the purposes referred to in the said clauses: Provided further that nothing contained in this sub-section shall be deemed to exempt any building or land (other than a building or land vested in or belonging to a municipal council) which is served by the municipal scavenging service, from the scavenging tax. Explanation. – The exemption granted under this sub-section shall not extend to residential quarters attached to schools and colleges not being hostels or to residential quarters attached to hospitals, dispensaries and libraries. (2) The drainage tax shall not be levied on any land used exclusively for agricultural purposes and not deriving any benefit from the drainage works on account of which the tax is imposed. (3) The municipal council may, with previous sanction of the Government, exempt any particular part of a municipality form the payment of the whole or a portion of the water or drainage tax or of the lighting tax on the ground that such area is not deriving full benefit from the water supply and drainage or from the lighting system. 249 (4) The municipal council may exempt any building or land from the whole or any portion of the scavenging tax if it is satisfied that the owner or occupier has made efficient arrangements for the daily removal therefrom of rubbish, filth and carcasses of animals and the cleansing of the latrines and cess-pool therein. (5) The municipal council may by a general resolution exempt any building or land from the property tax --- (i) if the annual value of the same does not exceed a sum specified in the said resolution, such sum not being greater than eighteen rupees, and (ii) if the proprietor does not own any other building or land assessed to the property tax and is not liable to profession or income-tax. * 125. Taxation to be uniform.- (1) The rate of any class of property tax on lands when levied on their annual value under sub-section (2) of section 121 may be lower than the rate of the same class of property tax on buildings but either rate shall be uniform throughout the municipal area on all buildings or on all lands liable to be taxed on their annual value, as the case may be: Provided that the aggregate property tax leviable in any year in the case of piers, wharves, jetties and passenger sheds, latrines and cart-stands, shall not exceed four per centum of their annual value. (2) The rate of any class of property tax shall be uniform throughout the municipal area on all lands liable to be taxed on their capital value. * 126. Preparation of assessment list.- When the property tax is levied, the Commissioner shall cause an assessment list of all lands or buildings or lands and buildings in the municipality to be prepared in the prescribed form. * 127. Authorised valuation officer to check assessment.- When the list of assessment has been completed by the Commissioner, he shall submit the same to the authorised valuation officer appointed by the Government for the municipal area. The authorised valuation officer shall verify the assessment as done by the Commissioner if necessary by inspection of properties concerned, and return the list duly checked and corrected to the Commissioner within a period of two months. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 250 * 128. Publication of notice of assessment list.- When the list of assessment is returned by the authorised valuation officer under the section 127, the Commissioner shall give public notice thereof may be inspected; and every person claiming to be either the owner or occupier of property included in the list, and any agent of such person, shall be at liberty to inspect the list and to make extracts therefrom without charge. * 129. Public notice of time fixed for lodging objections.- (1) The Commissioner shall, at the time of the publication of the assessment list under section 128, give public notice of a date not less than thirty days, after such publication, before which objections to the valuation or assessment in such list shall be made; and in all cases in which any property is for the first time assessed or the assessment is increased, he shall also give notice thereof to the owner or occupier of the property, if known, and if the owner or occupier of the property is not known, he shall affix the notice in a conspicuous position on the property. (2) Objections to the valuation and assessment on any property in such list shall, if the owner or occupier of such property desires to make an objection, be made by such owner or occupier or any agent of such owner or occupier to the Commissioner before the time fixed in the aforesaid public notice, by application in writing, stating the grounds on which the valuation or assessment is disputed and all applications so made shall be registered in a book to be kept by the Commissioner for the purpose. * 130. Objection how to be dealt with.- After the period given in the public notice referred to in section 128 expires, the Commissioner shall forward to the authorised valuation officer for the municipal area, the assessment list along with objections received. The authorised valuation officer shall investigate and dispose of the objections after allowing the objector an opportunity of being heard in person or by agent and cause the result thereof to be noted in the book kept under section 129 and cause any amendment necessary in accordance with such result to be made in the assessment list: Provided that before any such amendment is made the reasons therefor shall be recorded in the book aforesaid. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 251 * 131. Authentic list how far conclusive.- Subject to such alterations as may be made therein under section 132 and to the result of any appeal or revision made under section 189 or section 191, the entries in the assessment list so authenticated and deposited and the entries, if any, inserted in the said list under the provisions of section 132 shall be accepted as conclusive evidence.- (i) for the purposes of all municipal taxes, of the valuation, or annual rent, on the basis prescribed in section 123, of buildings or lands or both buildings and lands to which such entries respectively refer; and (ii) for the purposes of the tax for which such assessment list has been prepared of the amount of the tax leviable on such buildings or lands or both buildings and lands in any half year in which such list is in force. * 132. Amendment of assessment list.- (1) The Commissioner, in consultation with the authorised valuation officer, may at any time alter the assessment list by inserting or altering an entry in respect of any property, such entry having been omitted from or erroneously made in the assessment list through fraud, accident or mistake or in respect of any building constructed, altered, added to or reconstructed in whole or in part, where such construction, alteration, addition or reconstruction has been completed after the preparation of the assessment list, after giving notice to any person interested in the alternation of the list of a date not less than one month from the date of service of such notice, before which any objection to the alteration should be made. (2) An objection made by any person interested in any such alteration, before the time fixed in such notice, and in the manner provided by section 130 shall be dealt with in all respects as if it were an application under the said section. (3) An entry or alteration made under this section shall, subject to the provisions of sections 189 and 191 have the same effect as it had been made in the case of a building constructed, altered, added to or reconstructed on the day on which such construction, alteration, addition or reconstruction was completed or on the day on which the new construction, alteration, addition or reconstruction was first occupied, whichever first occurs, or in other cases, on the earliest day in the half-year on which the circumstances justifying the entry or alteration existed; and the tax or the enhanced tax, as the case may be, shall be levied in such half-year in the proportion which the remainder of the half-year after such day bears to the whole half-year. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 252 * 133. Assessment to be done after every five years.- The assessment of every property in the municipal area shall, as far as practicable, be done not less than once in five years and once done shall remain in force for five years. Subject to rules made in this behalf, the Commissioner may, for the purpose of assessment divide the municipal area into such suitable divisions as he deems fit or may undertake the work for the whole municipal area simultaneously. The publication of the authenticated assessment list shall be done not later than the 30th day of June of the year to which the list relates. * 134. Property tax a first charge on property;- The property tax on buildings and lands shall, subject to the prior payment of land revenue, if any, due to the Government thereon, be a first charge upon the said buildings or lands and upon the movable property, if any, found within or upon the same and belonging to the person liable to pay such tax. * 135. Primary responsibility for property taxes on whom to rest.- (1) The property tax shall be levied every half-year and shall be paid by such person or persons as are primarily liable under sub-section (2) and sub-section (3) and section 136, within fifteen days from the date of commencement of the half-year. (2) Subject to the provisions of sub-section (3), property tax assessed upon any premises shall be primarily leviable as follows, namely: - (a) if the premises are held immediately from the Government or from the council, from the actual occupier thereof: Provided that property tax due in respect of buildings vesting in the Government and occupied by servants of the Government or other person on payment of rent shall be leviable primarily from the Government; (b) if the premises are not so held.- (i) from the lessor, if the premises are let; (ii) from the superior lessor, if the premises are sub- let; (iii) from the person in whom the right to let the premises vests, if they are unlet; (iv) from the person in possession, if the premises are not let out to him. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 253 (3) If any land has been let for any term exceeding one year to a tenant and such tenant has built upon the land, the property tax assessed upon the said land and upon the building erected thereon shall be primarily leviable from the said tenant or any person deriving title from the said tenant by the operation of law or by assignment or transfer but not by sub-lease or legal representative of the said tenant or person whether the premises be in the occupation of the said tenant or person or legal representative or a sub-tenant. * 136. Apportionment of responsibility for property tax when the premises assessed are let or sub-let.- (1) If any premises assessed to any property tax are let, and their annual value exceeds the amount of rent payable in respect thereof to the person from whom, under the provisions of section 135, the said tax is leviable, the said person shall be entitled to receive from his tenant the difference between the amount of the property tax levied from him and the amount which would be leviable from him if the said tax were calculated on the amount of rent payable to him. (2) If the premises are sub-let and their annual value exceeds the amount of rent payable in respect thereof to the tenant by his sub-tenant, or the amount of rent payable in respect thereof to a sub-tenant by the person holding under him, the said tenant shall be entitled to receive from his sub-tenant or the sub-tenant shall be entitled to receive from the person holding under him, as the case may be, the difference between any sum recovered under this section from such tenant or sub- tenant and the amount of property tax which would be leviable in respect of the said premises if the annual value thereof were equal to the difference between the amount of rent which such tenant or sub-tenant receives and the amount of rent which he pays. (3) Any person entitled to receive any sum under this section shall have, for the recovery thereof, the same rights and remedies as if such sum were rent payable to him by the person from whom he is entitled to receive the same. * 137. Person primarily liable for property tax entitled to credit, if he is a rent payer.- If any person who is primarily liable for the payment of any property tax himself pays rent to another person (other than the Government or the council) in respect of the premises upon which such tax is assessed, he shall be entitled to credit in account with such other person for such sum as would be leviable on account of the said tax if the amount of the rent payable by him were the annual value of the said premises. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 254 * 138. Person primarily liable for a property tax how to be designated if his name cannot be ascertained.- (1) Where the name of the person primarily liable for the payment of a tax on buildings or lands or both in respect of any premises cannot be ascertained it shall be sufficient to designate him in the assessment book, and in any notice which it may be necessary to serve upon the said person under this Act, as “the holder” of such premises, without further description. (2) If in any such case, any person in occupation of the premises shall refuse to give such information as may be requisite for determining who is primarily liable as aforesaid, such person shall himself be liable until such information is obtained, for all taxes on buildings, or lands or both leviable on the premises of which he is in occupation. * 139. Vacancy remission.- (1) when any building whether ordinarily let or occupied by the owner himself has been vacant and unlet for thirty or more consecutive days in any half-year, the Commissioner shall remit so much (not exceeding one half) of such portion of the tax as relates to the building only as is proportionate to the number of days during which the building was vacant and unlet in the half-year. (2) Every demand for remission under sub-section (1) shall be made during the half-year in respect of which the remission is sought or in the following half-year and not afterwards. (3) (a) No demand for such remission shall be entertained unless the person liable for the tax or his agent has previously thereto delivered notice to the Commissioner: - (i) that the building is vacant and unlet; or (ii) that the building will be vacant and unlet from a specified date either in the half-year in which notice is delivered or in the succeeding half-year. (b) The period in respect of which the remissions made shall be calculated -- (i) if remission is sought in respect of the half-year in which notice is delivered from the date of delivery of the notice or from the date on which the building became vacant and unlet, whichever is later; and * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 255 (ii) if remission is sought in respect of the half-year succeeding that in which the notice is delivered, from the commencement of the half-year in respect of which remission is sought or from the date on which the building became vacant and unlet, whichever is later. (c) Every notice under clause (a) shall expire with the half-year succeeding that during which it is so delivered, and shall have no effect thereafter. * 140. Obligation of transferor and transferee to give notice of transfer.- (1) Whenever the title of any person primarily liable to the payment of property tax on any premises to or over such premises is transferred, the person whose, title is transferred and the person to whom, the same shall be transferred shall, within three months after the execution of the instrument of transfer or after its registration if it be registered or after the transfer is effected, if no instrument be executed, give notice of such transfer to the Commissioner. (2) In the event of the death of any person primarily liable as aforesaid the person to whom the title of the deceased shall be transferred as heir or otherwise shall give notice in writing of such transfer to the Commissioner within one year from the death of the deceased. (3) The notice to be given under this section shall be in such form as the Commissioner may direct and the transferee or the person to whom the title passes, as the case may be, shall if so required, be bound to produce before the Commissioner any documents evidencing the transfer or succession. (4) Every person who makes a transfer as aforesaid without giving such notice to the Commissioner shall, in addition to any other liability which he incurs through such neglect, continue liable for the payment of property tax assessed on the premises transferred until he gives notice or until the transfer shall have been recorded in the municipal registers but nothing in this section shall be held to affect.- (a) the liability of the transferee for the payment of the said tax, or (b) the prior claim of the municipal council under section 134. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 256 *141. Notice to be given to the Commissioner of the construction, reconstruction or demolition of building.- (1) (a) If any building in a municipality is constructed or reconstructed, the person primarily liable for the property tax assessed on the building shall give notice thereof to the Commissioner within fifteen days from the date of completion or occupation of the building whichever is earlier. (b) If such date falls within the last two months of a half-year, the person primarily liable for the property tax shall, subject to notice being given under clause (a), be entitled to a remission of the whole of the tax or enhanced tax, as the case may be, payable in respect of the building only for that half-year. (c) If such date falls within the first four months of a half-year, the person primarily liable for the payment of the said tax shall, subject to notice being given under clause (a), be entitled to a remission of so much not exceeding a half of the tax or enhanced tax, as the case may be, payable in respect of the building, only for that half-year as is proportionate to the number of days in that half-year preceding such date. (2) (a) If any building in a municipality is demolished or destroyed, the person primarily liable for payment of the said tax shall, until notice thereof is given to the Commissioner, be liable for the payment of the property tax which would have been leviable had the building not been demolished or destroyed. (b) If such notice is given within the first two months of a half-year, the person primarily liable for the payment of the said tax shall be entitled to a remission of so much not exceeding a half of the tax payable in respect of the building only for that half-year as is proportionate to the number of days in that half-year succeeding the demolition or destruction, as the case may be. * 142. Remission of tax in areas included or excluded in the middle of a half- year.- (1) If any area is constituted into or included within, a municipality, the person primarily liable for the property tax assessed on every building or land in such area shall -- * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 257 (a) if the date of such constitution or inclusion falls within the last two months of a half-year, not be liable to pay any property tax in respect thereof for that half-year; and (b) if such date falls within the first four months of a half-year, be entitled to a remission of so much (not exceeding a half of the property tax payable in respect thereof for that half-year) as is proportionate to the number of days in that half-year preceding such date. (2) If a municipality is abolished or if any area is excluded from a municipality, the owner of every building or land in such are a shall be entitled- (a) if the date of such abolition or exclusion falls within the first two months of a half-year to a remission of the whole of the property tax payable in respect thereof for that half-year; and (b) if such date falls within the last four months of a half-year, to a remission of so much (not exceeding a half of the property tax payable in respect thereof for that half-year) as is proportionate to the number of days in that half-year succeeding such date. (3) No remission shall be granted under sub-section (2) in respect of any building or land unless an application for such remission is made to the Commissioner within three months from the date of the abolition of the municipality or the exclusion of the area in which the building or land is situated. * 143. Power of Commissioner to call for information.- (1) For the purpose of assessing the property tax, the authorised valuation officer or the Commissioner, as the case may be, may, by notice, call on the owner or occupier of any building or land to furnish him, within thirty days after the service of the notice, where the notice is served upon any State Government or a company and within seven days after such service in other cases, with returns of the rent payable for the land or building, the cost of erecting the building and the measurements of the land and with such other information as the authorised valuation officer or the Commissioner may require, and every owner and occupier on whom such notice is served shall be bound to comply with it and to make a true return to the best of his knowledge or belief. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 258 (2) For the purpose aforesaid the authorised valuation officer or the Commissioner may enter, inspect, survey and measure such building or land, after giving twenty-four hours notice to the owner or occupier. The profession tax. *144. Profession tax.- (1) If the council by a resolution determines that profession tax shall be levied.- (a) every company which, after the date specified in the notification published under section 120 transacts business in the municipality for not less than sixty days in the aggregate in any half-year; and (b) every person, who after the said date, in any half-year exercises a profession, art or calling or transacts business or holds any appointment, public or private within the municipality for not less than sixty days in the aggregate, or outside the municipality but who resides in the municipality for not les than sixty days in the aggregate, or resides in the municipality for not less than sixty days in the aggregate and is in respect of any income from investments, shall pay a half-yearly tax not exceeding the rates specified in Schedule IV and assessed in such manner as may be prescribed. (2) A person shall be chargeable under the class appropriate to his aggregate income from all the sources specified in sub-section (1) as being liable to the tax. (3) If a company or person proves that it or he has paid the sum due on account of the profession tax levied under this Act or any other Act, for the same half-year to any municipality or local authority in the Union territory of Puducherry, such company or person shall not be liable, by reason merely of change of place of business, exercise of profession, art or calling, appointment or residence, to pay to any other municipality or local authority more than the difference between such sum and the amount to which it or he is otherwise liable for the profession tax for the half-year under this Act. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 259 (4) (a) Nothing contained in this section shall be deemed to render a person who resides within the local limits of one local authority and exercises his profession, art or calling or transacts business or holds any appointment within the limits of any other local authority or authorities liable to profession tax for more than the higher of the amounts of the tax leviable by any of the local authorities. (b) In such a case the Government shall apportion the tax between the local authorities in such manner as it deems fit and the decision of the Government shall be final. * 145. Liability of members of firms, associations and joint Hindu families to profession tax.- The profession tax leviable on a firm, association or joint Hindu family may be levied on any adult member of the firm, association or family. * 146. Liability of servants or agents to profession tax.- (1) If a company or person employs a servant or agent to represent it or him, for the purpose of transacting business in a municipality, such company or person shall be deemed to transact business in the municipality and such servant or agent shall be liable for the profession tax, in respect of the business of such company or person, whether or not such servant or agent has power to make binding contracts on behalf of such company or person. (2) Where one company or person is the agent of another company or person, the former company or person shall not be liable separately to the profession tax, on the same income as that of the principal. * 147. Service of notice on failure of payment of tax.- If the profession tax due from any company or person is not paid, the Commissioner shall cause a notice to be served on such company or person to pay it within fifteen days of the date of such service. * 148. Statements, returns, etc., to be confidential.- All statements made, returns furnished or accounts or documents produced in connection with the assessment of profession tax by any company or person shall be treated as confidential and copies thereof shall not be granted to the public. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 260 * 149. Owner or occupier to furnish list of persons liable to tax.- The Commissioner may, by notice, require the owner or occupier of any building or land and every secretary or manager of a hotel, boarding or lodging house, club, or residential chambers to furnish within a specified time a list in writing containing the names of all persons occupying such building, land, hotel, boarding or lodging house, club, or residential chambers and specifying the profession, art, calling or appointment of very such person and the rent, if any, paid by him and the period of such occupation. * 150. Requisition on employers or their representatives to furnish list.- The Commissioner may, by notice, require any employer or the head or secretary or manager of any public or private office, hotel, boarding house or club or of a firm or company.- (a) to furnish within a specified time a list in writing of the names and residential addresses of all persons employed by such employer or by such office, hotel, boarding-house, club, firm or company as officers, servants dub ashes, agents, suppliers, or contractors, with a statement of the salary or income of such employed persons, and (b) to furnish particulars in regard to any company of which such employer, head, secretary or manager, as the case may be, is the agent. * 151. Deduction of profession tax from salary or wages or other sum.- (1) Every employer shall, on receipt of a requisition from the Commissioner, deduct from the salary or wages of any person employed by the employer as an officer or a servant or from any sum payable by the employer to any person employed by the employer as dubash, agent, supplier or contractor, such amount of profession tax, as may be specified in such requisition as being due from such employed person. Explanation. – In this sub-section, “employer” includes the head or secretary or manager of any public or private office, hotel, boarding-house, club, firm or company. (2) Every person responsible for making any deduction under sub-section (1) may, at the time of making the deduction, increase or reduce the amount to be deducted under sub-section (1) for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the half-year. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 261 (3) Any deduction made in accordance with provisions of sub-sections (1) and (2) and paid to the municipality shall be treated as a payment of profession tax on behalf of the person from whose salary or wages the deduction was made or on behalf of the person to whom the sum from which the deduction was made is payable, and credit shall be given to him for the amount so deducted on the production of the certificate furnished under sub-section (5) in respect of the profession tax, if any, due from that person for the relevant half-year under this Act. (4) Any sum deducted in accordance with the provisions of sub-section (1) and (2) shall, be paid within the prescribed time to the credit of the municipality. (5) Every person making the deduction under sub-section (1) or sub-section (2) shall, at the time of payment of the salary or wages or sum, furnish to the person to whom such payment is made a certificate to the effect that profession tax has been deducted, and specifying the amount so deducted and such other particulars as may be prescribed. (6) Where profession tax due from any employed person is deducted under sub-section (1) or sub-section (2) the person from whose salary or wages the deduction was made or the person to whom the sum from which the deduction was made is payable shall not be called upon to pay the tax himself to the extent to which tax has been so deducted. (7) Every person making the deduction under sub-section (1) or sub-section (2) shall prepare and, within such period as may be prescribed after the expiry of the half-year, deliver or cause to be delivered to the Commissioner in the prescribed form and verified in the prescribed manner, a return in writing showing the name and residential address of every person from whose salary or wages deduction was made under sub-section (1) or sub-section (2), and of every person to whom the sum from which such deduction was made is payable, the amount so deducted, and the half-year to which the deduction relates. (8) If any person responsible for making any deduction under sub-section (1) or sub-section (2) fails to comply with any of the provisions of this section, he shall be punishable with fine which may extend to five hundred rupees: Provided that nothing contained in this sub-section shall apply to the Central Government or any State Government or any officer of any such Government. (9) The provisions of this section shall apply notwithstanding any law to the contrary for the time being in force. 262 Tax on advertisements other than advertisements published in the newspapers * 152. Tax on advertisements.- +[(1) Every person who erects, exhibits, fixes or retains upon or over any land, building, wall, hoarding or structure any advertisement or who displays any advertisement to public view in any manner whatsoever, in any place whether public or private, shall pay on every advertisement which is so erected, exhibited, fixed, retained, or displayed to public view, a tax as determined by the Council at such rates which shall not be less than the rates specified in Schedule VII]. +[(2) The rates of the tax shall be determined by the Council subject to the condition that they shall not be less than the minimum laid down in that Schedule]. Provided that no tax shall be levied under this section on an y advertisement or a notice.- (a) of a public meeting; or (b) of an election to any legislative body or the council; or (c) of a candidature in respect of such an election: Provided further that no such tax shall be levied on advertisement which is not a sky-sign and which .- (a) is exhibited within the window of any building; or (b) relates to the trade or business carried on within the land or building upon or over which such advertisement is exhibited, or to any sale or letting of such land or building or any effects therein or to any sale, entertainment or meeting to be held upon or in the same; or (c) relates to the name of the land or building upon or over which the advertisement is exhibited, or to the name of the owner or occupier of such land or building; or (d) relates to the business of any railway administration; or (e) is exhibited within any railway station or upon any wall or other property of a railway administration except any portion of the surface of such wall or property fronting any street. Explanation. 1. -- In this section, “structure” includes any movable board on wheels used as an advertisement or an advertisement medium. * The section came into force on the 1 st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. + Sub-section (1) and (2) of Section 152 has been amended vide Act No.5 of 2017 w.e.f. 17th May, 2017. 263 Explanation. 2.—In this section, “sky-sign” means any advertisement, supported on or attached to any post, pole, standard, frame-work or other support wholly or in part upon or over any land, building, wall or structure which, or any part of which sky-sign, shall be visible against the sky from some point in any public place, including all and every part of any such post, pole, standard, frame-work or other support, and also includes any balloon, parachute or other similar device employed wholly or in part for the purposes of any advertisement upon or over any land, building or structure or upon or over any public place but does not include .- (a) any flagstaff, pole, vane or weather-cock, unless adapted or used wholly or in part for the purposes of any advertisement; or (b) any sign, or any board, frame or other contrivance securely fixed to or on the top of the wall or parapet of any building or on the cornice or blocking course of any wall, or to the ridge of a roof: Provided that such board, frame or other contrivance shall be of one continuous face and not open work, and does not extend in height more than one metre above any part of the wall, or parapet or ridge to, against or on which it is fixed or supported; or (c) any advertisement relating to the name of the land or building upon or over which the advertisement is exhibited, or to the name of the owner or occupier of such land or building; or (d) any advertisement relating exclusively to the business of a railway administration and placed wholly upon or over any railway, railway station, yard, platform or station approach belonging to a railway administration, and so placed that it cannot fall into any street or public place; or (e) any notice of land or building to be sold, or let placed upon such land or building. Explanation. 3. – In this section, “public place” means any place which is open to the use and enjoyment of the public, whether it is actually used or enjoyed by the public or not. 264 * 153. Prohibition of advertisements without written permission.- (1) No advertisement shall, after the levy of the tax under section 152 had been determined upon by the council, be erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding or structure within the municipality or shall be displayed in any manner whatsoever in any place without the written permission of the Commissioner. (2) The Commissioner shall not grant such permission if.- (i) the advertisement contravenes any bye-law made by the council under this Act; or (ii) the tax, if any, due in respect of the advertisement has not been paid. (3) Subject to the provisions of sub-section (2), in the case of an advertisement liable to the advertisement tax, the Commissioner shall grant permission for the period to which the payment of the tax relates and no fee shall be charged in respect of such permission: Provided that the provisions of this section shall not apply to any advertisement erected, exhibited, fixed or retained on the premises of a railway administration relating to the business of a railway administration. *154. Permission of the Commissioner to become void in certain cases.- The permission granted under section 153 shall become void in the following cases, namely.- (a) if any addition to the advertisement be made, except for the purpose of making it secure, under the direction of the Commissioner; (b) if any material change be made in the advertisement or any part thereof; (c) if the advertisement or any part thereof falls otherwise than through accident; (d) if any addition or alteration be made to, or in, the land, building, wall, hoarding or structure upon or over which the advertisement is erected, exhibited, fixed or retained, and such addition or alteration involves the disturbance of the advertisement or any part thereof; and * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 265 (e) if the buildings, wall, hoarding or structure upon or over which the advertisement is erected, exhibited fixed or retained be demolished or destroyed. * 155. Owner or person in occupation to be deemed responsible.- Where any advertisement is erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding or structure in contravention of the provisions of section 152 or section 153 or after the written permission for the erection, exhibition, fixation or retention thereof for any period shall have expired or become void, the owner or person in occupation of such land, building, wall, hoarding or structure shall be deemed to be the person who has erected, exhibited, fixed or retained such advertisement in such contravention unless he proves that such contravention was committed by a person not in his employment or under his control or was committed without his connivance. * 156. Removal of unauthorised advertisements.- If any advertisement be erected, exhibited, fixed or retained contrary to the provisions of section 152 or section 153 or after the written permission for the erection, exhibition, fixation, or retention thereof for any period shall have expired or become void, the Commissioner may, by notice in writing, require the owner or occupier of the land, building, wall, hoarding or structure upon or over which the same is erected, exhibited, fixed or retained to take down or remove such advertisement or may enter any building, land or property and have the advertisement removed. * 157. Collection of tax on advertisement.- The Commissioner may farm out the collection of any tax on advertisement leviable under section 152 for any period not exceeding one year at a time on such terms and conditions as may be provided for in the bye-laws made under this Act. Duty on transfers of property * 158. Method of assessment of duty on transfers of property.- The duty on transfer of property shall be levied --- (a) in the form of a surcharge on the duty imposed by the Indian Stamp Act, 1899 (Central Act 2 of 1899) as extended to the Union territory, on every instrument of the description specified in Schedule VIII which relates to immovable property situated within the limits of a municipality; and * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 266 (b) at such rate as may be fixed by the Government, not exceeding five per centum, on the amount specified in Schedule VIII. * 159. Provisions applicable on the introduction of transfer duty. – On the introduction of the transfer duty -- (a) section 27 of the Indian Stamp Act, 1899, (Central Act 2 of 1899) shall be read as if it specifically required the particulars to be set-forth separately in respect of property situated within the limits of a municipality and outside such limits; (b) section 64 of the said Act shall be read as if it referred to the municipal council concerned as well as the Central Government and the State Government. *160. Power to make rules regarding assessment and collections of transfer duty. – The Government may make rules not inconsistent with this Act for regulating the collection of the duty, the payment thereof to the municipal councils concerned and the deduction of any expenses incurred by the Government in the collection thereof. Entertainments tax * 161. Tax on payment for admission to entertainment. – The entertainments tax shall be levied on each payment for admission to any entertainment at rates the maxima and minima whereof are specified in Schedule V: Provided that in the case of cinematograph exhibition, the tax shall be calculated at the rates specified on each payment for admission after excluding from such payment the amount of the tax. +[161-A.(1) Tax on Television exhibition.– (1) Notwithstanding anything contained in section 161, entertainment tax on cable television exhibition of any programme, including cable television network, shall be levied at the rate of ten per cent of the amount collected by a cable operator by way of contribution or subscription or installation or connection charges or any other charges collected in any manner whatsoever from a subscriber. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. + Inserted by Act No. 9 of 1999, section 2, w.e.f 07-06-1999. 267 (2) The tax levied under this section shall be recoverable from the cable operator or any person providing cable television exhibition including cable television network; the tax liability shall not be passed on to the subscribers. Explanation. – For the purposes of this section, --- (i) "antenna" means an apparatus which is able to receive television signals and which enables viewers to tune into transmissions including national or international satellite transmissions and is erected or installed for television exhibition; (ii) "cable operator" means any person who provides cable service through a cable television network or otherwise controls or is responsible for the management and operation of a cable television network; (iii) "cable service" means the transmission by cables of programmes including retransmission by cables of any broadcast television signals; (iv) "cable television" means a cable service system organised for television exhibition of programmes which are viewed and heard on the television receiving set at a residential or non-residential place of a subscriber, by using a recorder or player or similar such apparatus on which pre-recorded video cassettes or discs or both are played or replayed; (v) "cable television network" means any system consisting of a set of closed transmission paths and associated signal generation, control and distribution equipment, designed to provide cable service for reception by multiple subscribers; (vi) "programme" means any television broadcast, and includes -- (a) exhibition of films, features, dramas, advertisements and serials through video cassette recorders or video cassette players or discs or both; (b) any audio or visual or audio-visual live performance or presentation; and the expression "programming service" shall be construed accordingly; 268 (vii) "subscriber" means a person who receives the signals of cable television network at a place indicated by him to the cable operator, without further transmitting it to any other person; and (viii) "television exhibition" means an exhibition with the aid of any type of antenna with a cable network attached to it or cable television of a programme by means of transmission of television signals by wire, where subscribers’ television sets at residential or non-residential place are linked by metallic coaxial cable or optic fiber cable to a central system called the head-end]. * 162. Additional tax on cinematograph exhibition. – (1) In the case of cinematograph exhibition, in addition to the tax under section 161, a tax on each show of cinematograph exhibition held within the local limits of the municipality shall be levied at rates the maxima and minima whereof are specified in Schedule VI. (2) The tax levied under sub-section (1) shall be recoverable from the proprietor. (3) The other provisions of this Act relating to entertainments tax shall, so far as may be, apply in relation to the tax payable under sub-section (1) as they apply in relation to the tax payable under section 161. * 163. Composition and consolidated payment of tax. – The Government may, on the application of the proprietor of any entertainment in respect of which the entertainments tax is payable **[under section 161 or section 161-A], allow the proprietor on such conditions as may be prescribed by the Government, to compound the tax payable in respect of such entertainment for a fixed sum. * 164. Admission to entertainment.—(1) Save in the case referred to in section 163, no person shall be admitted on payment to any entertainment where the payment is subject to the entertainments tax except -- * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. ** Substituted vide Act 10 of 2004, section 2, w.e.f. 23-12-2004. 269 (a) with a ticket issued in such manner and subject to such conditions as may be prescribed, or (b) in special cases, with the approval of the Government, through a barrier which, or by means of a mechanical contrivance which, automatically registers the number of persons admitted. (2) Save in the case referred to in section 163 and clause (b) of sub-section (1), no proprietor of an entertainment shall conduct the entertainment unless he has given security up to an amount and in a manner approved by the Government or any other officer duly authorised by it in this behalf. (3) Nothing in sub-section (1) or sub-section (2) shall be deemed to preclude the Government from requiring security from the proprietor of an entertainment for the payment of the entertainments tax in any other case. * 165. Manner of payment of tax – (1) The entertainments tax shall be levied in respect of each person admitted on payment, and shall be calculated and paid on the number of admissions. (2) The entertainments tax shall be due and be recoverable from the proprietor. (3) Where the payment for admission to an entertainment is made wholly or partly by means of a lump-sum paid as a subscription or contribution to any institution or for a season ticket or for the right of admission to a series of entertainments or to any entertainment during a certain period of time, the entertainments tax shall be paid on the amount of the lump-sum but where the Government is of opinion that the payment of a lump-sum or any payment for a ticket represents payment for other privileges, rights or purposes besides the admission to an entertainment, or covers admission to an entertainment during any period during which the tax has not been in operation, the tax shall be levied on such an amount as appears to the Government to represent the right of admission to entertainments in respect to which the entertainments tax is payable. * 166. Returns. – (1) Every proprietor of an entertainment shall submit such returns relating to payments for admission, to such authority, in such manner and within such periods, as may be prescribed. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 270 (2) If the prescribed authority is satisfied that any return submitted under sub-section (1) is correct and complete, it shall assess the proprietor on the basis thereof. (3) If no return is submitted by the proprietor of the entertainment under sub-section (1) before the date prescribed or if the return submitted by him appears to the prescribed authority to be incorrect or incomplete, the prescribed authority shall, after making such inquiry as it considers necessary, determine the tax due under section 161 or section 162 or under both and assess the proprietor to the best of its judgment: Provided that before taking action under this sub-section, the proprietor shall be given a reasonable opportunity of proving the correctness and completeness of any return submitted by him or that no return was due from him. * 167. Entertainment exempted from payment of tax. – The Government may, by general or special order, exempt any entertainment or class of entertainments from liability to the entertainments tax. * 168. Inspection. – (1) (a) Any officer authorised by the Government in this behalf may enter any place of entertainment while the entertainment is proceeding, and any place ordinarily used as a place of entertainment at any reasonable time, for the purpose of seeing whether the provisions of this Act or any rules made thereunder are being complied with. (b) Every officer so authorised shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal code (Central Act 45 of 1860). (2) The proprietor of every entertainment or the owner or person in charge of any place ordinarily used as a place of entertainment shall give every reasonable assistance to the inspecting officer in the performances of his duties under sub- section (1). (3) If any person prevents or obstructs the entry of the inspecting officer, he shall, in addition to any other punishment to which he is liable under any law for the time being in force, be punished with fine which may extend to five hundred rupees. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 271 +[Explanation – For the purposes of this section, the place of entertainment in relation to television exhibition shall be deemed to be the place from where such television exhibition is provided.] * 169. Exemption from payment for admission. – The officer referred to in section 168 or any other officer who has to enter any place of entertainment in pursuance of a duty imposed upon him by or under this Act or any other law shall not be required to pay for his admission to the entertainment. * 170. Powers of entry, search and seizure. – (1) If any officer authorised by the Government in this behalf has reasonable ground to suspect that a contravention of the provisions of this Act or the rules made thereunder has been committed, he may enter and search at all reasonable times any premises where books, records, accounts, registers, tickets (used and unused) and portions thereof or any other article connected therewith are kept or suspected to be kept by the proprietor of an entertainment, and, may, for reasons to be recorded in writing, seize such books, records, accounts, registers, tickets (used and unused) and portions thereof, or any other article connected therewith as he may consider necessary, and shall give the proprietor or the person in charge of the premises a receipt for the same. The books, records, accounts, registers, tickets and portions thereof, or any other article so seized shall be retained by such officer only for so long as may be necessary for the purpose of investigation. (2) If any person prevents or obstructs entry, search or seizure by any such officer, he shall, in addition to any other punishment to which he is liable under any law for the time being in force, be punished with fine which may extend to five hundred rupees. * 171. Power to make rules. – (1) The Government may, by notification, make rules for securing the payment of the entertainments tax and generally for carrying into effect the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for --- (a) the use of tickets covering the admission of more than one person and the calculation of the tax thereon; and the payment of the tax on the transfer from one part of a place of entertainment to another, and on payments for seats or other accommodation; + Inserted vide Act No.9 of 1999, section 3, w.e.f 7.6.99. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 272 (b) controlling the use of barriers or mechanical contrivances (including the prevention of the use of the same barrier or mechanical contrivance for payment of a different amount) and for securing proper records of admission by means of barriers or mechanical contrivances; (c) the checking of admissions, the keeping of accounts and the furnishing of returns by the proprietors of entertainments; (d) the presentation and disposal of applications for exemption from payment of the entertainments tax, or for the refund thereof, made under the provisions of this Act; (e) the collection of the entertainments tax under this Act and the powers to be exercised by the officers of the Government in that behalf; (f) authorising any municipal council to collect the entertainments tax in the area within the jurisdiction of the municipal council or any part of the such area, and for the powers to be exercised by the officers of the municipal council in connection with such collection; (g) the issue of passes by proprietors of entertainments for the admission of officers who have to perform any duty in connection therewith or any other duty imposed upon them by law; and (h) appeals and revisions in respect of proceedings under this Act, the period within which such appeals and revisions should be preferred and the fees to be paid, in respect of such appeals and revisions. (3) In making a rule under sub-section (1) or sub-section (2), the Government may provide that a breach thereof shall be punishable with fine which may extend to five hundred rupees. Duty on toddy trees *172. Levy of duty on toddy trees. – (1) The duty on toddy trees may be levied – (a) in the form of surcharge on the duty imposed by the Puducherry Excise Act, 1970 (12 of 1970) on every variety of toddy trees specified in Schedule IX and tapped within the limits of the municipality, and (b) at such rates as may be fixed by the Government not exceeding the rates specified in Schedule IX. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 273 (2) All the provisions of the Puducherry Excise Act, 1970 (12 of 1970) and the rules made thereunder shall apply to the said duty as they apply in relation to the duty chargeable under that Act. (3) The Government may make rules not inconsistent with this Act for regulating the collection of the duty, the payment thereof to the municipal councils concerned and the reduction of any expenses incurred by the Government in the collection thereof. Additional tax on buildings and lands * 173. Levy of additional tax on buildings and lands used for certain purposes. – (1) If the council by resolution determines that the tax referred to in clause (b) of sub- section (2) of section 118 shall be levied, such tax shall be collected from the date specified in the notification published under section 120 in pursuance of such resolution. (2) The municipal council shall, in determining the rates at which the tax shall be levied under sub-section (1), have regard to the following matters, namely: - (a) the locality in which the building or land is situated; (b) the purpose for which the building or land is used, such purpose being a purpose specified in Schedule III; (c) accessibility or proximity to market, dispensary, hospital, railway station or Government offices: (d) availability, of civic amenities like water-supply, drainage and lighting. (3) Different rates may be specified in respect of different classes of purposes specified in Schedule III. * 174. Additional tax on buildings and lands used for certain purposes when payable. – The tax referred to in clause (b) of sub-section (2) of section 118 shall be levied every half-year and shall, save as otherwise expressly provided in this Act, be paid by the person primarily liable to tax assessed on the building or land within fifteen days after the commencement of the half-year. * The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. 274 Recovery of taxes, fees, cesses and other dues. * 175. Mode of recovery of taxes, fees, cesses and other dues. – All amounts on account of taxes, fees, or penalties imposed or as may hereafter be imposed by or under this act or rules or bye-laws made thereunder and all amounts on account of contract, auction, lease or any sum claimable under this Act or under the rules or bye-laws made thereunder shall, save as otherwise provided, be recoverable in the manner hereinafter provided. * 176. Mode of collection. – (1) When any tax, fee, cess, and other dues not being property tax or profession tax becomes due from any person, the Commissioner shall serve upon such person a bill for the sum due. (2) Every such bill or a notice under section 147 shall specify the period for which, and the property, occupation or thing in respect of which the tax or sum is charged and shall also give notice of the liability incurred in default of payment and of the time within which an appeal may be preferred as hereinafter provided against such claim. (3) For every such notice or bill, a fee of such amount not exceeding five rupees, as may in each case be fixed by the Commissioner, shall be payable by the said person. (4) Nothing contained in this section or in section 177 shall preclude the council from suing in a civil court for any tax, fee, cess and other sum due to it under this Act. * 177. Distraint and sale of movable property. – If the person liable for the payment of tax, fee, cess or other due does not, within fifteen days from the commencement of the half-year in respect of property tax or from the service of the notice or bill as the case may be, pay the sum due or show sufficient cause for non- payment of the same to the satisfaction of the Commissioner and if no appeal is preferred against the said tax, fee, cess or due as provided in this Act, the Commissioner may recover by distraint under a warrant in the form set out in Schedule X and sale of the movable property of the defaulter, the amount due on account of the tax, fee, cess or due together with all costs of the recovery which include a warrant and distraint fee at such rate not exceeding the rates specified in Schedule XII and such further sum as will satisfy the probable charges that will be incurred in connection with the detention and sale of the property so distrained: * The section came into force on the 26th day of January, 1974 vide Extraordinary Gazette No. 11, dated 17th January, 1974. 275 Provided that movable property described in the proviso to sub-section (1) of section 60 of the Code of Civil Procedure, 1908 (Central Act 5 of 1908) shall not be liable to distraint. * 178. Power of entry by force under special order. – It shall be lawful for any officer to whom a warrant issued under section 177 is endorsed, if the warrant contains a special order authorising him in this behalf, to break open at any time between sunrise and sunset any outer or inner door or window of a building in order to make the distraint, if he has reasonable ground for believing that such building contains property which is liable to seizure, and if, after notifying his authority and purpose and duly demanding admittance, he cannot otherwise obtain admittance: Provided that such officer shall not enter or break open the door of any apartment, appropriated to women, until he has given three hours notice of his intention and has given such women, as opportunity to withdraw. * 179. Inventory and notice of distress and sale. – (1) The officer charged with execution of a warrant of distress issued under section 177 shall forthwith make an inventory of movable property which he seizes under such warrant and shall at the same time give a written notice in the form set out in Schedule XI or in some similar form together with a copy of inventory to the person in possession thereof at the time of seizure, that the said property shall be sold as therein mentioned. (2) The distress shall not be excessive, that is to say the property distrained shall be as nearly as possible equal in value to the amount due by the defaulter together with all expenses incidental to the warrant, distraint, detention and sale. (3) Nothing contained in this section shall preclude from demanding payment of tax due and of warrant fees before making the distraint. * 180. Property of defaulter may be distrained whenever found. – The property of any person liable for the payment of any tax, fee, cess and due may be distrained wherever it may be found within the municipality. * The section came into force on the 26th day of January, 1974 vide Extraordinary Gazette No. 11, dated 17th January, 1974. 276 * 181. Sale of property. – (1) If the warrant is not in the meantime suspended by the Commissioner or discharged, the property seized or a sufficient portion thereof, shall, after the expiry of the period specified in the notice served, under section 179 be sold by public auction under the orders of the Commissioner who shall apply the proceeds of the sale to the payment of amount due on account of tax, fee, cess or other dues and the said fees and expenses incidental to the detention and sale of the property and shall return to the person in whose possession the property was at the time of seizure any property or sum which may remain after the sale and the application of the proceeds thereof aforesaid. If the proceeds of the sale are insufficient for the payment of the amount due on account of the tax, and the said fees and the expenses incidental to the detention and sale of the property, the Commissioner may again proceed under section 177 in respect of the sum, remaining unpaid. (2) When the property seized is subject to speedy and natural decay, the Commissioner may sell it at any time before the expiry of the said period specified in the notice, unless the amount due is sooner paid. (3) The Commissioner shall consider any objections to the distraint of any property which are made within the period specified in the notice and may postpone the sale pending investigation thereof. If the Commissioner decides that the property attached was not liable to distraint, he shall return it, or if it has already been sold, the proceeds of the sale to the person appearing to be entitled thereto and may again proceed under section 177 and all fees and expenses connected with the first distraint and sale shall be recoverable from the defaulter if it shall appear to the Commissioner that he wilfully permitted the distraint of the property when to his knowledge it was not liable to distraint. * 182. When occupier may be held liable for payment of property tax. – If any tax due on account of any building or land remains unpaid in whole or in part at the end of the period of fifteen days from the commencement of the half-year to which it relates, the Commissioner may, if the said tax has not remained unpaid for more than twelve months, require the occupier for the time being of such building or land to pay the amount within a specified period not being less than fifteen days and if the occupier fails to comply with such requisition, the Commissioner may distrain and sell any movable property found on the building or land and the provisions of the * The section came into force on the 26th day of January, 1974 vide Extraordinary Gazette No. 11, dated 17th January, 1974. 277 foregoing sections shall, as far as may be, apply to all distraints and sales effected under this section provided that no occupier shall be liable to prosecution or to a civil suit in respect of any sum recoverable from him under this section, unless he has wilfully prevented distraint or a sufficient distraint. * 183. Certain amount to be recovered as arrears of land revenue. – (1) If any tax, cess, fee or sum due from any person remains unpaid in whole or in part at the end of the period specified in section 177 and if such person has left India or cannot be found, the said tax, cess, fee or other sum or such part thereof as remains unpaid together with all sums payable in connection therewith, and five per cent of the aggregate of such tax, cess, fee or other sum or part and all such sums to cover the cost of collection shall be recoverable as if the same were an arrear of land revenue. (2) Out of the gross amount collected under sub-section (1), 1/21 part shall be credited to the Government to cover the cost of collecting the tax. * 184. Imposition of fine. – (1) Every person who is prosecuted for non-payment of any tax, cess, fee or other sum due shall be liable, on proof to the satisfaction of the Magistrate that he wilfully omitted to pay the amount due by him or that he wilfully prevented distraint or a sufficient distraint, to pay a fine not exceeding twice the amount which may be due by him on account of - (a) the tax, cess, fee or other sum due and the warrant fee, if any, and (b) if distraint has taken place, the distraint fee and the expenses incidental to the detention and sale, if any, of the property distrained. (2) Whenever any person is convicted of an offence under sub-section (1), -- the Magistrate shall, in addition to any fine which may be imposed, recover summarily and pay over to the municipal council the amounts, if any, due under sub-section (1); and may in his discretion also recover summarily and pay to the council such amount, if any, as he may fix as the costs of the prosecution. * The section came into force on the 26th day of January, 1974 vide Extraordinary Gazette No. 11, dated 17th January, 1974. 278 General provisions regarding taxation. * 185. Power to exempt from taxes.- (1) With the sanction of the Government the municipal council may exempt any person or class of persons wholly or in part from the payment of any tax. (2) Nothing in this section shall be deemed to authorise the exemption of any person solely on the ground that he is a member of a municipal council. * 186. Assessment of various taxes etc. – (1) (a) The Commissioner shall, save as otherwise provided in this Act, prepare and keep assessment book in such form as may be prescribed showing the person and property liable to taxation under this Act. (b) The assessment books and where detailed particulars relating to any assessment are kept in separate records, the portion thereof containing such particulars, shall be open, at all reasonable times and without charge, to inspection by any person who pays any tax to the municipality or his authorised agent and such person or agent shall be entitled to take extracts free of charge, from the said books and records. (c) The account books of the council shall be open without charge to inspection by any person who pays any tax to the municipality or his authorised agent on a day or days in each month to be fixed by the council. (2) The Commissioner shall, save as otherwise provided in this Act, determine the tax to which each property or person is liable: Provided that in the case of taxes payable by the Commissioner the original assessment shall be made by the Director. (3) (a) The Commissioner shall give to every person making payment of a tax, fee, cess or other sum due, a receipt thereof signed by him or by some person duly authorised by him in that behalf. (b) Such receipt shall specify --- (i) the date of the grant thereof; (ii) the name of the person to whom it is granted; (iii) the tax, fee, cess or other sum due in respect of which the payment has been made; (iv) the period for which payment has been made; and (v) the amount paid; * The section came into force on the 1st day of August, 1976 vide Extraordinary Gazette No. 342 dated, 29th July 1976. 279 * 187. Power to write off irrecoverable taxes etc. – The municipal council may write off any tax, fee or other amount whatsoever due to it, whether under a contract or otherwise, or any sum payable in connection therewith, if in its opinion, such tax, fee amount or sum is irrecoverable: Provided that the municipal council shall not without obtaining the previous sanction in writing of the prescribed authority, write off any such tax, fee, amount or sum if the tax, fee, amount or sum exceeds such amount or sum as may be prescribed. * 188. Payment of interest in case of default of payment of taxes.-- (1) Subject to the provisions of this Act, any sum due on account of any tax levied by the municipal council, if not paid within fifteen days from the date on which the tax is due shall be deemed to be in arrears, and thereupon such simple interest not exceeding ten per centum per annum as the Commissioner may fix shall be payable on such sum from the date aforesaid. (2) The interest payable under sub-section (1) shall be collected as if it formed part of the tax and all the relevant provisions of this Act shall apply accordingly. +[189. Appeals. – (1) Appeals against any claim for taxes or other dues included in a bill presented to any person under section 176 or any other provision of this Act may be made to the Taxation Appeals committee of the concerned Municipality to be established by the Government. (2) The Taxation Appeals Committee shall consist of the Chairman of the Municipal Council who shall also be the Chairperson of the Taxation Appeals Committee and two Councillors duly elected by the Council. (3) The business of the Taxation Appeals Committee shall be transacted in accordance with the rules made by the Government in this behalf. (4) When the Council is dissolved, the Officer or authority appointed by the Government under clause (b) of sub-section (2) of section 109 to exercise and perform all the powers and duties under this Act during the period of dissolution shall be the Chairperson of the Taxation Appeals Committee and the Executive Engineer of the Public Works Department who is in-charge of execution of building works and the Deputy Collector of the Revenue Department of the respective region, shall be its members. * The section came into force on the 1st day of August, 1976 vide Extraordinary Gazette No. 342, dated 29th July 1976. + Substituted vide Act No.11 of 1999, section 2, w.e.f 05.07.99. 280