Section 180

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

Explanation. – In this section and in section 125, "land revenue" means public revenue due on land and includes water cess payable to the Government for water supplied or used for the irrigation of land, royalty, lease amount or other sum payable to the Government in respect of land held direct from the Government on lease or licence, but does not include any other cess or the surcharge payable under section 125, provided that land revenue remitted shall not be deemed to be land revenue payable for the purpose of this section. (2) The local cess payable under sub-section (1) shall be deemed to be public revenue due on all the lands in respect of which a person is liable to pay local cess and all the said lands, the buildings upon the said lands and their products shall be regarded as the security for the local cess. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. 546 (3) The law for the time being in force relating to the recovery of land revenue, shall apply to the payment and recovery of the local cess payable under this Act just as they apply to the payment and recovery of the revenue due upon the lands in respect of which the local cess under this Act is payable. (4) Out of the proceeds of the local cess collected in the commune panchayat, exclusive of the amount credited to the equalisation fund such percentage as the Government may fix shall be credited to the village panchayat fund and the balance of the proceeds of the local cess shall be credited to the funds of the commune panchayat council. @125. Local cess surcharge. – Every commune panchayat council may levy on every person liable to pay land revenue to the Government in respect of any land in the commune panchayat a local cess surcharge at such rate as may be considered suitable as an addition to the local cess levied in the commune panchayat under section 124: Provided that the rate of local cess surcharge so levied shall be not exceeding one hundred per cent. @126. Rules regarding collection of local cess. – The Government may make rules not inconsistent with this Act for regulating the collection of the local cess, the payment thereof to the village panchayat and commune panchayat councils and the deduction of any expenses incurred by the Government in the collection thereof. @127. Taxes leviable by village panchayat. – (1) Subject to any general or special order which the Government may make in this behalf, every village panchayat shall levy for the purpose of this Act, the following taxes and fees namely: -- (a) a house tax; (b) a tax on professions, trades or callings (hereinafter referred to as profession tax); (c) such other tax as the Government may, by notification, direct any village panchayat or class of village panchayats to levy subject to such rules as may be prescribed: Provided that no such notification shall be issued and no such rule shall be made except with the previous approval of the Legislative Assembly of Puducherry *[and where the Legislative Assembly is dissolved, or the functioning of that body as such legislature remains suspended on account of any action taken under any such law as is referred to in clause (1) of article 239A of the Constitution, except with the previous approval of the Central Government]. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. * Inserted by Regulation 8 of 1976, with effect from 12-5-1976 vide Extraordinary Gazette No. 200, dated 28-5-1976. 547 (2) A duty shall also be levied on certain transfer of immovable property situated in the area within the jurisdiction of the village panchayat in the form of additional stamp duty in accordance with the provisions of section 149. (3) Subject to the previous sanction of the Government and to any general or special order which the Government may make in this behalf, every village panchayat may levy for the purposes of this Act, the following taxes and fees namely: -- (a) a duty on toddy trees in the form of additional excise duty on toddy trees; (b) a tax on agricultural land for a specific purpose; (c) a tax on fairs and festivals; (d) a tax on the village produce sold in the village by weight, measurement or number: Provided that the village panchayat shall not levy any such tax in any area for which a market committee is constituted under law for the time being in force in the Union territory relating to the regulation of purchase and sale of agricultural produce, livestock and products of livestock and the establishment of market in connection therewith; (e) fee for the use of poramboke or communal lands under the control of village panchayat; (f) fee for market, cart-stand; (g) a special water rate for water supplied by the village panchayat through pipes, which may be imposed in any form including that of charges for such water supplied, fixed in such mode or modes as shall be best adopted in the circumstances of any class of cases; (h) a fee for the supply of water from wells and tanks vesting in it, for purposes other than domestic use and for cattle; and (i) a fee for temporary erection on, or putting up projections over, or temporary occupation of, any public street or place. 548 +[(j)“a fee on every motor vehicle entering into any place of pilgrimage or tourist resort within the jurisdiction of any village panchayat 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 village panchayats 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)”]. (4) The taxes specified in sub-sections (1), (2) and (3) shall be assessed and levied in accordance with the provisions of this Act and the rules made thereunder. @128. Taxes levied by commune panchayat council. – (1) Subject to any general or special order which the Government may make in this behalf, every commune panchayat council shall impose --- (a) any of the taxes which are leviable by a village panchayat under section 127: Provided that the rate of tax leviable by the commune panchayat council in respect of any matter within the limits of village panchayat shall not exceed twenty-five per cent of the prescribed maximum rates in respect of the same matter. (b) the following taxes, namely: -- (i) entertainments tax; (ii) tax on cinematograph exhibition. (2) The provisions of the last preceding section shall as far as may be apply to such taxes leviable by the commune panchayat council. @129. Mode of collection of tax leviable. -- Where, in the exercise of the powers under section 127, a village panchayat imposes a tax, fee or cess, such tax, fee or cess shall be collected by the commune panchayat council within whose jurisdiction the village panchayat is situated in accordance with the provisions of section 165 as if it were a tax, fee and cess imposed by the commune panchayat council under the provisions of this Act and shall be paid to the village panchayat at such time and in such manner as may be prescribed. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976 + Inserted vide Amendment Act 10 of 2002 w.e.f 16.5.2002 and published in the Extraordinary Part – II Gazette No. 27 dated 22-05-2002. 549 *[129-A. Constitution of Finance Commission to review financial position. – (1) The Administrator shall, as soon as may be, within one year from the commencement of the Constitution (Seventy-third Amendment) Act, 1992 and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the panchayats and to make recommendations to the Administrator as to --- (a) the principles which should govern – (i) the distribution between the Union territory and the panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the Union territory which may be divided between them and the allocation between the panchayat at all levels of their respective shares of such proceeds; (ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by the panchayats; (iii) the payment of grants-in-aid to the panchayats from the Consolidated Fund of the Union territory of Puducherry; (b) the measures needed to improve the financial position of the panchayats; and (c) any other matter referred to the Finance Commission by the Administrator in the interests of sound finance of the panchayats. (2) The Finance Commission shall consist of such number of members not exceeding three including the Chairman as may be determined by the Government. (3) The Chairman of the Commission shall be selected from amongst persons who have had experience in public affairs and other members shall be selected from amongst persons who --- (a) have special knowledge of the finances and accounts of the Government and local self-government institutions; or (b) have had wide experience in financial matters and in administration; or (c) have special knowledge of economics. * The section 129-A. inserted and came into force on 23-4-1994 by an amendment Act 5 of 1994 vide Extraordinary Gazette No. 13, dated 23-4-1994. 550 (4) Every member of the Commission shall hold office for such period as may be specified in the order of the Administrator appointing him, and shall also be eligible for re-appointment. (5) (a) The Commission shall in the performance of their functions have all the powers of the civil court under the Code of Civil Procedure, 1908 (Central Act No. 5 of 1908) while trying a suit in respect of the following matters, namely: - (i) summoning and enforcing the attendance of any witness and examining him on oath; (ii) requiring the discovery and production of any documents; (iii) requisitioning any public record from any court or office; (iv) receiving evidence on affidavits; (b) The Commission shall have the powers to require any person to furnish information on such points or matters as in the opinion of the commission may be useful for, or relevant to, any matter under consideration of the Commission. (6) The Commission shall determine their procedure and shall have such powers in the performance of their functions as may be prescribed. (7) The Administrator shall cause every recommendation made by the Commission under this section together with an explanatory memorandum as to the action taken thereon to be laid before the Legislative Assembly of the Union territory.] House tax @130. Method of assessment and rate of levy of house tax. – (1) The house tax specified in clause (a) of sub-section (1) of section 127 shall, subject to such rules as may be prescribed, be levied on all houses in the village on any of the following basis, namely: -- (a) annual rental value; or (b) capital value; or (c) such other basis as may be prescribed. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. 551 (2) The house tax shall, subject to the prior payment of the land revenue, if any, due to the Government in respect of the site of the house, be a first charge upon the house and upon the movable property, if any, found within or upon the same and belonging to the person liable to such tax. (3) The house tax shall be levied every half-year and shall save as otherwise expressly provided in this Act or the rules made thereunder be paid by the owner within fifteen days from the date of commencement of the half-year. (4) It shall be levied at such rates as may be fixed by the village panchayat not being less than the minimum rates and not exceeding the maximum rates specified in Schedule II in regard to the basis of levy adopted by the village panchayat. @131. Appointment of authorised valuation officer. – (1) The Government may, by notification, -- (a) appoint such officers including those of Revenue and Public Works Departments to be the authorised valuation officers for the purposes of this Act; and (b) define the panchayat areas within which such officers shall exercise the powers conferred and perform the duties imposed upon them by or under this Act. (2) Each village panchayat or commune panchayat 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 panchayat village or commune panchayat, 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. @132. Preparation of assessment list. – When the house tax is levied by village panchayat or commune panchayat council, the Commissioner shall cause an assessment list of all houses in the panchayat villages to be prepared in the prescribed form. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. 552 @133. 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 panchayat village and commune panchayat The authorised valuation officer shall verify the assessment as done by the Commissioner, if necessary, by inspection of houses concerned, and return the list duly checked and corrected to the Commissioner, within a period of two months. @134. Publication of notice of assessment list. – When the list of assessment is returned by the authorised valuation officer under section 133, the Commissioner shall give public notice thereof and of the place where the list or copy thereof may be inspected; and every person claiming to be either the owner or occupier of house 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. @135. Public notice of time fixed for lodging objections. – (1) The Commissioner shall, at the time of the publication of the assessment list under section 134, 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 house if known, and if the owner or occupier of the house is not known, he shall affix the notice in a conspicuous position on the house. (2) Objections to the valuation and assessment on any house in such list shall, if the owner or occupier of such house desire 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. @136. Objection how to be dealt with. – After the period given in the public notice referred to in section 134 expires, the Commissioner shall forward to the authorised valuation officer for the panchayat village and commune panchayat, 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 135 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 EG No. 342, dt. 29.07.1976. 553 @137. Authentic list how far conclusive. – Subject to such alterations as may be made therein under the provisions of section 138 and to the result of any appeal made under section 148 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 138 shall be accepted as conclusive evidence – (i) for the purposes of all village panchayat and commune panchayat taxes, of the valuation, or annual rent, on the basis prescribed in section 130 of houses 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 tax leviable on such houses in any half-year in which such list is in force. @138. Amendment of assessment list. – (1) The Commissioner in consultation with the authorised valuation officer may, at any time, after the assessment list by inserting or altering an entry in respect of any house, such entry having been omitted from or erroneously made in the assessment list through fraud, accident or mistake or in respect of any house 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 alteration 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 136 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 section 148, have the same effect as if it had been made in the case of a house 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 EG No. 342, dt. 29.07.1976. 554 @139. Assessment to be done after every five years. – The assessment of every house in the panchayat village and commune panchayat 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 panchayat village into such suitable divisions as he deems fit or may undertake the work for the whole panchayat village 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. @140. Recovery of house tax from the owner by the occupier. – If the occupier of house pays the house tax on behalf of the owner thereof, such occupier shall be entitled to recover the same from the owner and may deduct the same from the rent due by him to the owner. @141. Levy of house tax or profession tax on a direction by Government. – (1) The Government may, by order published in the Official Gazette, for special reasons to be specified in such order direct any village panchayat to levy the house tax or profession tax referred to in sub-section (1) of section 127 at such rates and with effect from such date not being earlier than the first day of the year immediately following that in which the order is published as may be specified in the order. (2) When an order under sub-section (1) has been published the provisions of this Act relating to house tax or profession tax shall apply as if the village panchayat had on the date of publication of such order, by resolution determined to levy the tax at the rate and with effect from the date specified in the order, and as if no other resolution of the village panchayat under section 127 determining the rate at which and the date from which the house tax shall be levied, had taken effect. (3) A village panchayat shall not alter the rate at which the house tax or profession tax is levied in pursuance of an order under sub-section (1) or abolish such tax except with the previous sanction of the Government. @142. Power to make rules regarding house tax. – (1) The Government may make rules generally to provide for, or to regulate matters in respect of house tax to be levied under this Act. (2) Without prejudice to the generality of the foregoing power, the Government may make rules with regard to all or any of the following matters, namely: - @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. 555 (i) the manner of ascertaining the annual or capital value of houses or the categories into which they fall for the purposes of taxation; (ii) the persons who shall be liable to pay the tax and the giving of notices of transfer of houses; (iii) the grant of vacancy and other remissions; (iv) the circumstances in which, and the conditions subject to which, houses constructed, reconstructed or demolished, or situated in areas included in, or excluded from the village panchayat, during every half-year, shall be liable or cease to be liable to the whole or any portion of the tax. @143. Profession tax. – (1) The profession tax shall, subject to such rules as may be prescribed, be levied every half-year in every panchayat village on- (i) every company which transacts business in such panchayat village for not less than sixty days in the aggregate in that half-year; and (ii) every person, who in that half-year --- (A) exercises a profession, art or calling or transacts business or holds any appointment, pubic or private --- (a) within such panchayat village for not less than sixty days in the aggregate; or (b) without such panchayat village but who resides in it for not less than sixty days in the aggregate; or (B) resides in such panchayat village, for not less than sixty days in the aggregate and is in receipt of any pension or income from investments. (2) The profession tax shall be levied every half-year at such rates as may be fixed by the village panchayat, not being less than such minimum rates and not exceeding such maximum rates as may be prescribed in Schedule III. (3) 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. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. 556 (4) If a company or person proves that it or he had paid the sum due on account of the profession tax levied under this Act or profession tax levied under any other Act, for the same half-year to any village panchayat or commune panchayat council or municipal council in the Union territory, 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 village panchayat or commune panchayat council or municipal council 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 or any other Act. (5) (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 may deem fit and the decision of the Government shall be final. (6) The profession tax leviable from a firm, association or joint Hindu family may be levied from any adult member of the firm, association or family. (7) (a) If a company or person employs a servant or agent to represent it or him for the purpose of transacting business in any local area, such company or person shall be deemed to transact business in the local area 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. (b) 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. @144. 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 pubic. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. 557 @145. Owner or occupier to furnish list of persons liable to tax. – The Commissioner or the President 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 or calling or appointment of every such person and the rent, if any, paid by him and the period of such occupation. @146. Requisition of employers or their representatives to furnish list. – The Commissioner or the President may, by notice, require any employer or the head or secretary or manager of any pubic 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, dubashes, 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. @147. Deduction of profession tax from salary or wages or other sum. – (1) Every employer shall, on receipt of a requisition from the Commissioner or President, 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. 558 (3) Any deduction made in accordance with the provisions of sub-section (1) or sub-section (2) and paid to the village panchayat or commune panchayat council 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) or sub-section (2) shall be paid within the prescribed time to the credit of the village panchayat or commune panchayat council, as the case may be. (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 or the President 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. 559 @148. Appeals against assessment. – An appeal shall lie to such authority and in such manner and within such time as may be prescribed against any assessment of tax made in pursuance of clauses (a) and (b) of sub-section (1) of section 127. Duty on transfers of property @149. Duty on transfers of property. – (1) The duty on transfers 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 which relates to immovable property situated in the area under the jurisdiction of a village panchayat; and (b) at such rate as may be fixed by the Government, not exceeding five per centum on the amount specified in Schedule IV. (2) On the introduction of the duty aforesaid --- (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 in the area under panchayat village and in respect of property situated outside such village; (b) section 64 of the said Act shall be read as if it referred to the village panchayat as well as the Government. (3) The amounts collected in the panchayat villages in the commune panchayat as surcharge on the duty on transfers of property under this section shall be pooled every year for the entire commune panchayat and distributed among all the village panchayats in the commune panchayat in proportion to the land revenue of the panchayat village. (4) The Government may make rules not inconsistent with this Act for regulating the collection of the duty, the payment thereof to the village panchayat and the deduction of any expenses incurred by the Government in the collection thereof. @150. Exemptions. – No exemption from the payment of any surcharge or tax specified in section 125 or section 127 or section 128 shall be granted by the village panchayat or the commune panchayat council except in accordance with such rules as may be prescribed: @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. 560 Provided that in any particular case, such exemption may be granted with the previous sanction of the Government. @151. Power to require land revenue staff to collect taxes and fees due to village panchayat and commune panchayat council. – Subject to such rules as may be prescribed, the executive authority or the Commissioner shall have power to require the staff of the Revenue Department to prepare at quinquennial intervals a house tax assessment register in such form as may be prescribed and to collect any tax or fee due to the village panchayat or commune panchayat council on payment of such remuneration not exceeding six and a quarter percent of the gross sum collected as the Government may, by general or special order, determine. @152. Write-off of irrecoverable amounts. – Subject to such restrictions and control as may be prescribed, a village panchayat or commune panchayat 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 where staff of the Revenue Department is responsible for the collection of any tax, fee or other amount due to a village panchayat or commune panchayat council the power to write-off such tax, fee or amount or any sum payable in connection therewith, on the ground of its being irrecoverable, shall be exercised by the Government. Duty on toddy trees @153. 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 V and tapped within the limits of the commune panchayat, and (b) at such rates as may be fixed by the Government not exceeding the rates specified in Schedule V. (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 village panchayat and commune panchayat council concerned in such proportion as may be fixed and the deduction of any expenses incurred by the Government in the collection thereof. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. 561 Entertainments tax. @154. Tax on payment for admission to entertainments. – 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 VI: 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. +[154 A. Tax on Television exhibition. - (1) Notwithstanding anything contained in section 154, 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. (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 programmers including re-transmission by cables of any broadcast television signals; @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. + Inserted vide Act No.10 of 1999 w.e.f 07.06.99 and published in the Extraordinary Gazette No. 25 dated 15.06.1999. 562 (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; (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 fibre cable to a central system called the head-end]. @155. Additional tax on cinematograph exhibition. – (1) In the case of cinematograph exhibition, in addition to the tax under section 154, a tax on each show of cinematograph exhibition held within the local limits of the commune panchayat shall be levied at rates the maxima and minima whereof are specified in Schedule VII. (2) The tax levied under sub-section (1) shall be recoverable from the proprietor. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. 563 (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 154. @156. 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 154 or section 154 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. @157. Admission to entertainments. – (1) Save in the case referred to in section 156, no person shall be admitted on payment to any entertainment where the payment is subject to the entertainments tax except, --- (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 156 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. @158. Manner of payment of tax. –(1) The entertainment 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. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. + Amended vide Act No. 11 of 2004 w.e.f. 23.12.2004 and published in the Extraordinary Gazette Part-II No. 39 dated 29.12.2004. 564 (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 of which the entertainments tax is payable. @159. 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. (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 154 or section 155 or under both and asses 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. @160. 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. @161. 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, 1860 (Central Act 45 of 1860). @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. 565 (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 performance 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. +[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.] @162. Exemption from payment for admission.—The officer referred to in section 161 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. @163. 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. @164. 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. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. + Inserted vide Act No.10 of 1999 which came into force w.e.f 07.06.99 and published in the Extra-ordinary Gazette No. 25 dated 15.6.1999. 566 (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; (b) controlling the use of barriers or mechanical contrivances (including the prevention of the use of the same barrier or mechanical contrivance for payments of a different amount) and the 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 the refund thereof, made under this 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 commune panchayat council to collect the entertainments tax in the area within the jurisdiction of the commune panchayat council or any part of such area, and the powers to be exercised by the officers of the commune panchayat 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; (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 ; and (i) apportionment of the proceeds realised under the tax between the village panchayat and commune panchayat council. 567 (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. Recovery of taxes, fees, cesses and other dues #165. Mode of recovery of taxes, fees, cesses and other dues. – All amounts on account of taxes, fees, cesses and 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. #166. Mode of collection. – (1) When any tax, fee, cess and other dues not being house tax becomes due from any person, the Commissioner shall serve upon such person a bill for the sum due. (2) Every such bill 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 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 167 shall preclude the council from suing in a civil court for any tax, fee, cess and other sum due to it under this Act. #167. Distraint and sale of movable property. - If the person liable for the payment of tax, fee, cess or other dues does not, within fifteen days from the commencement of the half-year in respect of house tax or from the service of the 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 VIII 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 IX 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: 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. # The section came into force on the 26th day of January, 1974 vide EG No. 11, dt. 17.1.1974. 568 #168. Power of entry by force under special order. – It shall be lawful for any officer to whom a warrant issued under section 167 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 an opportunity to withdraw. #169. Inventory and notice of distress and sale. – (1) The officer charged with the execution of a warrant of distress issued under section 167 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 X 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 warrant fees before making the distraint. #170. Property of defaulter may be distrained wherever 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 commune panchayat. #171. Sale of property. – (1) If the warrant is not in the mean time 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 169 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 the 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 as 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 167 in respect of the sum remaining unpaid. # The section came into force on the 26th day of January, 1974 vide EG No. 11, dt. 17.1.1974. 569 (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 167 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. #172. When occupier may be held liable for payment of house 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 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. #173. 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 167 and if such person has left India or cannot be found, the said tax, cess, fees 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. #174. 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 # The section came into force on the 26th day of January, 1974 vide EG No. 11, dt. 17.1.1974. 570 (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 village panchayat or the commune panchayat council, as the case may be, the amounts, if any, due under sub-section (1); and may in his discretion also recover summarily and pay to the village panchayat or the commune panchayat council, as the case may be, such amount, if any, as he may fix as the costs of the prosecution. #175. 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 village panchayat or commune panchayat 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. #176. Appeal. – Appeals against any claim for taxes or other dues included in a bill presented to any person under section 166 or any other provision of this Act may be made to such authority as may be prescribed. #177. Procedure in appeal. – No appeal under section 176 shall be entertained unless – (a) the appeal is brought within fifteen days next after the presentation of the bill complained of or from the commencement of the half- year in respect of house tax; (b) the amount claimed from the appellant has been deposited by him in the office of the commune panchayat council; and (c) in the case of a house tax, an application in writing stating the grounds on which the claim of the village panchayat or commune panchayat council is disputed has been made to such panchayat or council within the time fixed in the notice given under section 135 or section 138. #178. Revision by court. – The decision of the prescribed authority in any appeal made under section 176 shall, at the instance of either party, be subject to revision by the court to which appeals against the decision of such prescribed authority ordinarily lie. # The section came into force on the 26th day of January, 1974 vide EG No. 11, dt. 17.1.1974. 571 #179. Bar of other proceedings. – No objection shall be taken to any valuation, assessment or levy, nor shall the liability of any person to be assessed or taxed be questioned, in any other manner or by any other authority than is provided in this Act. @180. Equalisation fund of panchayats. -- (1) There shall be established by the Government a fund to be called the Panchayat Equalisation Fund which shall consist of the payments made into it not exceeding an amount equal to five per cent of the average sum of land revenue collected or recovered during the three preceding years in the Union territory, and it shall be utilised for making special grants to backward village panchayats or commune panchayats so as to minimize the social and economic inequalities between them. (2) The fund established under sub-section (1) shall be non-lapsable. (3) Special grants out of the said fund shall be made to the village panchayats or commune panchayat councils in accordance with such rules as may be prescribed. @181. Local cess surcharge matching grant. – The Government shall pay every year to the commune panchayat council a local cess surcharge matching grant, which shall be a sum calculated at such percentage as may be prescribed of the proceeds of the local cess surcharge levied in the commune panchayat. @182. Classification of commune panchayats. – (1) For the purpose of sanctioning grants to commune panchayat councils, the Government may classify commune panchayats in such manner as it may deem fit once in every five years and it shall be open to the Government to sanction grants at varying rates for the different classes of commune panchayats for various development schemes. (2) It shall also be open to the Government to revise the classification of commune panchayats once in every five years. #183. Local roads grant. – (1) The Government shall pay every year to every commune panchayat council a local roads grant at such rate as may be prescribed, to be earmarked and spent on the maintenance of roads in its area and such sum shall be in lieu of the amounts payable before the commencement of this Act with reference to clause (b) of sub-section (1) of section 12 of the Puducherry Motor Vehicles Taxation Act, 1967 (Act No. 5 of 1967). (2) Such rate shall be reviewed and refixed once in every five years with due regard to the needs and resources of the commune panchayats. #184. House tax matching grant. – On every rupee of house tax collected by a village panchayat or commune panchayat, an equal amount shall be paid by the Government as grant which shall be called the house tax matching grant. # The section came into force on the 26th day of January, 1974 vide EG No. 11, dt. 17.1.1974. @ The section came into force on the 1st day of August, 1976 vide EG No. 342, dt. 29.07.1976. 572 #185. Deduction from grants in certain cases. – Where the commune panchayat council undertakes a work of common benefit for more than one panchayat village, it may apportion the cost of such work among the different panchayat villages benefited thereby. In such a case, the commune panchayat council shall be entitled to recover the share of such cost from the village panchayat out of the amounts payable to the village panchayat under sections 124 and 149. Village and commune panchayat fund #186. Constitution of commune panchayat fund and village panchayat fund. – There shall be constituted --- (i) for each commune panchayat council, a commune panchayat fund; (ii) for each village panchayat, a village panchayat fund. #187. Commune panchayat fund. – The receipts which shall be credited to the commune panchayat fund shall include --- (i) such part of the local cess collected in the commune panchayat as remains after crediting to the village panchayat fund under section 124; (ii) the local cess surcharge collected in the commune panchayat under section 125; (iii) the local cess surcharge matching grant paid by the Government under section 181; (iv) the local roads grant paid by the Government under section 183. (v) fees on licences issued and permissions given by the commune panchayat council; (vi) fees levied in public markets classified as commune panchayat markets after deducting the contribution, if any, paid by the commune panchayat council to the village panchayat on the scale fixed by the Government; (vii) the contribution paid to the commune panchayat council by village panchayat in respect of the markets classified as village panchayat markets; (viii) fees for the temporary occupation of roads or road margins; # The section came into force on the 26th day of January, 1974 vide EG No. 11, dt. 17.1.1974. 573 (ix) fees for the use of choultries; (x) income from endowments and trusts under the management of the commune panchayat council; (xi) contributions from Government, other commune panchayat councils, municipalities, other local authorities and persons in aid of any institution or service maintained or financed from commune panchayat funds or managed by the commune panchayat council; (xii) sale-proceeds of tools and plant, stores and materials and of trees and avenue produce appertaining to commune panchayat roads: (xiii) income from commune panchayat ferries and fisheries; (xiv) interest on loans and securities; (xv) interest on arrears of revenue; (xvi) income from the sale proceeds of, building, lands and other property belonging to the commune panchayat council; (xvii) unclaimed deposits and other forfeitures; (xviii) fines and penalties levied under this Act by the commune panchayat council or at its instance or on its behalf; (xix) all sums other than those enumerated above which arise out of, or are received in aid of, or for expenditure on, any institutions or services maintained or financed from the commune panchayat fund or managed by the commune panchayat council; (xx) the proceeds of other taxes levied by the commune panchayat council; (xxi) all other moneys received by or on behalf of the commune panchayat council from any other source whatsoever. #188. Village panchayat fund. -- The receipts which shall be credited to the village panchayat fund shall include --- # The section came into force on the 26th day of January, 1974 vide EG No. 11, dt. 17.1.1974. 574 (i) the share of the local cess under section 124; (ii) the house tax, the profession tax, and any other tax or any fee, levied under section 127; (iii) the proceeds of the duty on transfers of property levied under section 149; (iv) the house tax matching grant under section 184; (v) fees levied in public markets classified as village panchayat markets after deducting the contributions, if any, paid by the village panchayat to the commune panchayat council on the scale fixed by the Government; (vi) the contribution paid to the village panchayat by the commune panchayat council in respect of markets classified as commune panchayat markets; (vii) fees for the temporary occupation of sites, roads and other similar public places or parts thereof in the panchayat villages; (viii) fees levied by the village panchayat in pursuance of any provision of this Act or any rule or order made thereunder; (ix) income from endowments and trusts under the management of the village panchayat; (x) income derived from fisheries; (xi) income derived from ferries under the management of the village panchayat; (xii) unclaimed deposits and other forfeitures; (xiii) a sum equivalent to the seigniorage fees collected by the Government every year from persons permitted to quarry for road materials in the panchayat village; (xiv) all income derived from poramboke the use of which is vested in the village panchayat; 575 (xv) income from leases of Government property obtained by the village panchayat; (xvi) fines and penalties levied under this Act by the village panchayat; (xvii) all sum other than those enumerated above which arise out of, or are received in aid of, or for expenditure on, any institutions or services maintained or financed from the village panchayat fund or managed by the village panchayat; (xviii) all other money received by or on behalf of the village panchayat from any other source whatsoever. Expenditure #189. Application of money received and expenditure from funds. – All moneys received by the commune panchayat council, or the village panchayat shall be applied and disposed of in accordance with the provisions of this Act and other laws: Provided that --- (i) the commune panchayat council or the village panchayat shall have power subject to such rules as may be prescribed to direct that the proceeds of any tax or additional tax levied under this Act shall be earmarked for the purpose of financing any specific public improvement; (ii) a separate account shall be kept of the receipts from every such tax or additional tax and the expenditure thereof. #190. Expenditure from commune panchayat fund and village panchayat fund. – (1) The purposes to which the funds of the commune panchayat council or of the village panchayat may be applied include all objects expressly declared obligatory or discretionary by this Act or any rules made thereunder or by any other laws or rules and the funds shall be applicable thereto within the commune panchayat or the panchayat village, as the case may be, subject to such rules or special orders as the Government may prescribe or issue and shall, subject as aforesaid, be applicable to such purposes outside the commune panchayat or panchayat village if the expenditure is authorised by this Act or specially sanctioned by the Director. # The section came into force on the 26th day of January, 1974 vide EG No. 11, dt. 17.1.1974. 576 (2) It shall be the duty of every commune panchayat council and village panchayat to provide for the payment of --- (i) any amounts falling due on any loans contracted by it; (ii) the salaries and allowances and the pensions, pensionary contributions and provident fund contributions of its officers and other employees and servants; (iii) sums due under any decree or order of a court; and (iv) any other expenses rendered obligatory by or under this Act or any other law. (3) A commune panchayat council or village panchayat may, with the sanction of the Government, contribute to any fund for the defence of India. (4) A commune panchayat council or village panchayat may, with the sanction of the Director also --- (i) contribute towards the expenses of any public exhibition, ceremony or entertainment in the commune panchayat or panchayat village; (ii) contribute to any charitable fund, or to the fund of any institution for the relief of the poor or the treatment of diseases or infirmity or the reception of diseased or infirm persons or the investigation of the causes of diseases; and (iii) defray any extraordinary charges. #191. Preparation and sanction of budgets. – (1) The executive authority of the village panchayat and the Commissioner, shall in each year frame and place before the village panchayat or the commune panchayat council, as the case may be, a budget showing the probable receipts and expenditure during the following year. (2) The budget of a village panchayat or commune panchayat council shall after preparation by the executive authority or the Commissioner, be submitted on or before such date and to such officer as may be prescribed, and if the prescribed officer is satisfied that adequate provision has not been made therein for the performance of any necessary service or services, he shall have power to return the budget for modification in such manner as may be necessary to secure such provision. # The section came into force on the 26th day of January, 1974 vide EG No. 11, dt. 17.1.1974. 577 (3) (a) The village panchayat or the commune panchayat council, as the case may be, shall sanction the budget with such modification as it thinks fit. (b) If there is a difference of opinion between the officer referred to in sub-section (2) and the village panchayat and the commune panchayat council, as the case may be, the budget shall be referred to the Director in the case of the village panchayat and the Government in the case of the commune panchayat council. (c) The Director or the Government, as the case may be, shall have power to modify the budget in such manner as he or it may consider necessary. (4) If in the course of a year, a village panchayat or commune panchayat council finds it necessary to alter the figures shown in the budget with regard to its receipts or to the distribution of the amounts to its receipts or to the distribution of the amounts to be expended on the different services undertaken by it, a supplemental or revised budget may be framed, sanctioned, submitted and modified in the manner provided in sub-sections (1) and (2), provided that no such alteration shall be given effect to except with the consent of the prescribed officer. #192. Appointment of auditors. – (1) The Government shall appoint auditors of the accounts of the receipts and expenditure of the funds of the commune panchayat council and of the village panchayat. (2) The auditors shall be deemed to the public servants within the meaning of section 21 of the Indian Penal Code (Central Act 45 of 1860). (3) No contribution shall be recovered by the Government from the commune panchayat council or the village panchayat towards the pay and allowances of such auditors or towards any other expenditure involved in the audit of the accounts of the commune panchayat council or the village panchayat. #193. Contributions to expenditure by other local authorities. – If the expenditure incurred by the Government or by any commune panchayat council or by any village panchayat or by any other local authority in the Union territory for any purpose authorised by or under this Act, is such as to benefit the inhabitants of the panchayat village, the commune panchayat council or the village panchayat, as the case may be, may with the sanction of the Director, and shall if so directed by him, make a contribution towards such expenditure. #194. Recovery of loans and advances made by Government. – (1) Notwithstanding anything contained in the Local Authorities Loans Act, 1914 (Central Act 9 of 1914), the Government may --- # The section came into force on the 26th day of January, 1974 vide EG No. 11, dt. 17.1.1974. 578 (a) by order direct any person having custody of the funds of the commune panchayat council or the village panchayat to pay to it in priority to any other charges against such fund, except charges for the service of authorised loans, any loan or advance made by it to the commune panchayat council or the village panchayat for any purpose to which its funds may be applied under this Act; (b) recover any such loan or advance by suit. (2) The person to whom the order referred to in clause (a) of sub-section(1) is addressed shall be bound to comply with such order. CHAPTER – V CONTROLLING AUTHORITIES #195. Appointment of officers to supervise commune panchayat councils and village panchayats. – The Government may appoint a Director and such other officers as may be required for the purpose of inspecting or superintending the operations of all or any of the village panchayats and the commune panchayat councils constituted under this Act. #196. Power to regulate conditions of service, etc. – The Government shall have power to regulate by rules made under this Act the classification, methods of recruitment, conditions of service, pay and allowances and discipline and conduct of the officers referred to in section 195 and of the members of their establishment. #197. Powers of inspecting officers. – (1) The Director or any officer appointed under section 195 or any other officer or person whom the Government, or the Director may empower in this behalf, may --- (a) enter on and inspect any immovable property or any work in progress under the control of any village panchayat or its executive authority or of any commune panchayat council or Commissioner; (b) enter any vaccination station or choultry maintained by, or under the control of any commune panchayat council or any other institution maintained by or under the control of any village panchayat or commune panchayat council and inspect any records, registers or other documents kept in any such institution; (c) enter the office of any village panchayat or commune panchayat council and inspect any records, registers or other documents kept therein. # The section came into force on the 26th day of January, 1974 vide EG No. 11, dt. 17.1.1974. 579 (2) Village panchayats and their Presidents, commune panchayat councils and their chairmen, Commissioners and the officers and other employees of village panchayats and commune panchayat councils shall be bound to afford to the officers and persons aforesaid, such access, at all reasonable times, to the property or premises of the village panchayat or commune panchayat council and to all documents as may, in the opinion of such officers or persons and subject to such rules as may be prescribed, be necessary to enable them to discharge their duties under this section. #198. Powers of officers for purpose of control. – The Director or any officer or other person whom the Government or the Director may empower in this behalf, may --- (a) direct the village panchayat or commune panchayat council to make provision for and to execute or provide any public work or amenity, or service of the description referred to in section 76 and