The document outlines various responsibilities and regulations around municipal finances in India, including collecting revenues, expenditure guidelines, authorized taxes local governments can levy, and procedures for collecting taxes such as house tax and enforcing collections. It provides details on taxes like house tax, vehicle tax, advertisement tax, user charges, license fees, and rates that can be charged. The document serves as a reference for local government officials on their fiscal powers and obligations under Indian law.

1. By
S.Shankaraiah.
S.R.P.TSIPARD

2. Financial Code, Treasury Code, Budget
Manual & Accounts Code
Responsibilities Toward Receipts-(Article 2, 7 to
11 of APFC vol-1) To assess the demand carefully
in advance, maintain proper accounts, steps to
collect revenue, reconciliation of accounts etc.,
Towards Expenditure- (Article 3,4,38 to 44, and
56 of APFC vol-1) Sanction must be by the
competent authority, sufficient budget, the
expenditure should not be prima facie, and
should not utilize for the personal ends or for
particular community.

3. Article.243 (H) of constitution
Section 60 of pr act 1994
House Tax (a)
 Kolagaram or Kata Rusumu (b)
 Tax on direction by Government ©
 Surcharge on Stamp Duty. (2)
 Vehicle tax (3)(i)
 Tax on Agricultural land for specific purpose (3)(ii)
 Land cess on lands (3)(iii)
 Fee for use of Poromboke lands (3)(iv)
 Fee for occupation of buildings & chavidies (3)(v)
 Surcharge of seigniorage fee (Approval of Govt) (4)
 Surcharge on lands (Approval of Govt) (5)
 Special Taxes (User charges) Sec. 71
 Fee for temporary occupation of land sec.74(2)(viii)

4. Article.243 (H) of constitution
section 60 of pr act 1994
Surcharge on Stamp Duty. @ 1.5%
Adjustment
Land cess on lands @ 0-02 paise on Rs.1 of
annual Rental value
Fee for use of Poromboke lands as prescribed
Fee for occupation of buildings & Chavidies
as prescribed
Surcharge on seigniorage fee (Approval of
Govt)
Surcharge on lands not > 25 paise in rupee
(Approval of Govt)

5. Collection of House tax
section 61 of pr act 1994
 Assessment of House Quini-Quinial .Rule 12(1)
 Govt .may post phone general Revision
 E.A. may amend assessment register (Rule 9)
 E.A. may assess tax between revision to
revision. Rule 9(3)
 Fresh Assessment Special Notice.(Rule 8)
 Appeal on Special Notice (Rule 10)
 E.A Shall settle petition and inform petitioner
(Rule 11)
 Appeal on order of E.A. to G.P.(Sec.128)(Rule.19)

6. Collection of House tax
section 61 of pr act 1994
 After Settlement ,Demand Notice time limit
15 days from service of Notice Rule 25(1)
 After expiry of time Distraint warrant Rule 26(1)
 Attachment of movable property
described under sec.60 of CCP 1908
 Under special order of E.A. charged officer with
warrant may break any outer or inner door,
if reasonable grounds .Rule 26(1)
 Defaulter’s property wherever within limits L.A
 Property seized shall be entered in Appendix.B
 After of 7 days of seizer, shall sold in public
auction Rule 28(1)

7. Collection of House tax
 Subject speedy natural decay, can auctioned
earlier. 28(2)
 Occupier liable pay the tax remained after 12
months. Rule. 31
 If warrant impracticable E.A. may Prosecute
the defaulter. Sec. 136 Rule 26 (2)
 Time limit for Prosecution 12 months
 Penalty Twice the amount payable along with
Dist.F. & expenses for detention of property
 D.P.O,Dl.P.O, E.O.PR&RD Shall also exercise
powers of E.A. in relation to collection of taxes

8. Important Sections in Collection
 Composition of tax payable by owner of
factory or a contiguous group of
buildings. 72
 Write off irrecoverable amount. Sec. 73
 Limitation of collection 3 years Sec. 135
 Recovery of dues as arrears of land
Revenue. Se.254
Recovery of amounts due as Taxes.Sec.272

9. Collection of Kolagaram or kata rusumu
section 60(B) of appr act 1994
 G.O.Ms.No. 295 P.R(Samithi-I) dated 4-4-1979 issued
under 1964 Act. is infoarce
 G.O.Ms.No. 411 issued revising the rates but restored
old rates vide G.O.Ms.No.476 .PR&RD (Pts.III) dated
12-11-1998
No. Name of the village produce Quantity Tax.
1 Turmeric, Sugar Cane, One Quintal Rs.0-50
2. Pepper -do- Rs. 1-00
3 Cashew and Ghee 10 kg Rs.0-25
4. Fruits and Eggs 100Nos. Rs. 0-10
5. Bricks & Tiles 1000 Nos. Rs. 1-00
6. Tamarind Quintal Rs. 0-30
7. Banana Leaves 100 Nos. Rs. 0-05

10. Collection of Vehicle tax
section 70 of P.R. act 1994
 Vehicle means a conveyance suitable for use on
roads or rails and includes any kind of carriage ,
cart, wagon wheel barrow, truck, bicycle, tricycle
and rickshaw
 G.O.Ms. No. 703 PR&RD (Pts.III) dated 1/11/1995
 Said G.O. Rescinded by Governor G.O.Ms.No.374
PR&RD (Rules) Dept. Dated 15/12/2001
 At present No collection of Vehicle Tax in GPs.

11. Levy of tax on Agl land for specific purpose
section 60 (3) (ii) of appr act 1994
G.O.Ms.No. 64 PR,RD & relief(Pts.iii) dated.5-02-1996
 This tax shall be levied for specific purpose, with prior
approval of District Collector,
 Construction, maintenance, repair, extension or
improvement of water works
 Lighting by gas or electricity
 Construction of building to be for culture, education or
medical and allied
 Protection of crop by cattle and petty thefts
 Effect from 1st day of fallowing year
 Rate of tax shall uniformal entire G.P. for wet and dry
land separately
 Rate shall be decide by Special meeting resolution
 Proposal routed through Mandal Parishad
Collection as per G.O. 30

12. Levy of tax on advertisement
section 63 of appr . act 1994
G.O.Ms.No. 326 PR&RD (Pts.iii) dated.3-09-1997
 Advertisement : erects, exhibits, fixes, retain, upon or
over any land, building, wall, hoarding or structure to
public view in any manner in any public or private place.
Rates shall be below the maximum limits prescribed by
government.
 No Tax. On Add or Notice of
• Public meeting
• Election to any body
• a candidate for such election
• No sky- shine
• Name board on trades
• Name plate of land and building
• Railway administration

13. Levy of tax on advertisement
section 63 of appr . act 1994
G.O.Ms.No. 326 PR&RD (Pts.iii) dated.3-09-1997
No Particulars Maximum rates
per annum
1. Non- Illuminated on wall, land,building,hoarding , frame
a. For a space upto 1-00 Sqm.
b. For a space over 1-00 Sqm
c. For every addl 2.50 Sqm or part
4.50
9.25
6.75
2. Non-illuminated adds carried on vehicles
a. For a space upto 5.00 Sqm
b. For every addl 5.00 Sqm or less
25.00
27.00
3. Illuminated adds carried on vehicles
a. For space upto 5.00 Sqm
b. For every addl 5.00 Sqm
32.50
32.50
4. Non-Illuminated adds carried by hand with boardmen
a. For each board <1.00 Sqm.
b. For each board > 1.00 <2.00 Sqm
c. For each board addl 1.00 Sqm.
6.75
11.25
4.50

14. No Particulars Maximum rates
per annum
5. Illuminated adds carried by hand with boadmen
a. For a board <1-00 Sqm.
b. For a board > 1-00 &<2.00 Sqm
c. For every addl 1.00 Sqm or part
6.75
11.25
4.50
6. Illuminated adds on land, building, wall, or hoarding, frame
a. For a space upto 0.20 Sqm
b. For every over 0.20 upto 0.50 Sqm
c. For space over 0.50 to .2.50 Sqm
d. For every addl.2.50Sqm or part
4.50
11.25
13.50
13.50
7 Exhibited on screen in public place with slides or similar
a. For space upto 0.50 Sqm
b. For space over 0.50 upto 2.50 Sqm
c. For every addl. 2.50 Sqm
2.00
2.00
2.00
7.A Adds in cinema Halls
a. Slides (plain and colored) per slide
b. Shorts (including tailor films) upto 150 mtrs
c. Shorts (including tailor films) upto 300 mtrs
d. Shorts (including tailor films) for every150 mtrs
20.25
56.25
112.50
93.75
Levy of tax on advertisement

15. No Particulars Maximum
rates per
annum
8 Non Illuminated adds suspended across streets
a. For a space upto 1.00 Sqm
b. For a space > 1-00 &<2.50 Sqm
c. For every addl 2.50 Sqm or part
5.40
6.75
6.75
9. Non-illuminated adds hoarding standing blank but bearing name of add
with address with announcement “to be let” displayed thereon
a. For a space upto 1.00 Sqm
b. For space over 1.00 upto 2.50 Sqm
c. For every addl.2.50Sqm or part
2.00
2.50
4.50
10 Printed adds for display etc.
a. 60.96cm X 91.44 cm First hundred
b. For next hundred
c. For every addl. hundred
d. For adds of bigger sizes proportionate increase in
rates will be charged
25.00
11.25
9.00
Levy of tax on advertisement

16. User charges Levy rules 2002
section 71 of pr . act 1994
G.O.Ms.No. 97 PR&RD (Pts.iii) dated.14--03-2002
 Special taxes (User Charges) shall be levied on houses
to provide for expenses connected with construction,
maintenance, repair, extension and improvement of
water, drainage and lighting
 No outside sanction is required.
 Documents for consideration
 Resolution of Gram Shaba
 Receipts & charges for last 3 years
 Budget Estimates for which proposed
 Cost of expenses and amount to be realized
 G.P. Resolution in Special meeting supported by half
 Rate and period to be decided

17. Levy Licence fee
section 119 & 120 of pr . act 1994
G.O.Ms.No. 16 PR&RD. relief (Pts.iii) dated.10--01-1996
 G.P.may notify no place with in limits used without
licence
 60 days for commencement
 G.P. permission is required for
Construction, establishment, installation of factory
 Install machinery of power, steam or water driven
 Erection of Cell phone towers
 Boiling of paddy, camphor, melting of sulfer,
 storing of bone, tanning skin, washing dry wool or hair
 making fish oil, soap, manufacturing of gun powder
 Burning bricks, tiles , lime, keeping hotel &lodging
 brewing beer, arrak , spirit containing alcohol
 Storing of timber,coal grass straw retail trades

18. Levy Licence fee
section 119 & 120 of appr . act 1994
G.O.Ms.No. 16 PR&RD. relief (Pts.iii) dated.10--01-1996
Sl.
No
Horse- Power of the Installation Max. fee chargeable
for 3 years
1. Domestic purpose Rs. 25-00
2. Rectifier & transformers irrespective of KVA Rs. 100-00
3 < one horse power Rs. 100-00
4 > One horse power < 5 horse power Rs. 200-00
5. > 5 horse power but < 10 horse power Rs. 500-00
6. > 10 horse power but < 25 horse power Rs. 2,000-00
7. > 25 horse power but < 50 horse power Rs. 3,000-00
8. >50 horse power but < 100 horse power Rs. 5,000-00
9 > 100 horse power Rs. 7,000-00
(G.O.Ms.No.334 P.R & R.D and Rlief (Pts.IV) dep. dated . 09-10-2012)
Cell Tower Erection Erected on ground Erected on building
Application Fee Rs.1,000-00 Rs. 1,000-00
On completion Rs.15,000-00 Rs. 10,000-00
Renewal fee for every year Rs.1,000-00 Rs. 1,000-00

19. S.Shankaraiah.
Divisional Panchayat Officer(Rtd)
S.R.P. TSIPARD.
Mobile.8008145599
Mail. shankarsriram4@gmail.com
Blog.shankarsriram.blogspot.in
www.shankarsriram.com