The Kerala Panchayat Raj (Taxation, Levy and Appeal) Rules, 1996.
1 Short title and commencement. —
- These rules may be called the Kerala Panchayat Raj (Taxation, Levy and Appeal) Rules, 1996.
- They shall come into force at once.
2. Definitions. — In these rules, unless the context otherwise requires,-
- (a) 'Act' means the Kerala Panchayat Raj Act, 1994 (13 of 1994);
** (aa)‘Panchayat’ means a Village Panchayat constituted under clause (a) of sub-section (1) of section 4 of the Act. - (b) Words and expressions used and not defined in these rules, but defined in the Act shall have the meanings respectively assigned to them in the Act.
3. Procedure for passing resolution determining the levy of tax. —
Any resolution passed by Panchayat for levying any tax enumerated in the Act shall specify the rate at which and the date from which any such tax shall be levied.
Provided that the Panchayat shall before passing any resolution for levying tax for the first time or for increasing the rate of an existing tax, publish a notice at least in one newspaperpublished in the main language of the locality, on the notice board of the Panchayat and in the places specified by the Panchayat and advertise by using pamphlet and loudspeaker of such intention, fix a reasonable period not being less than thirty days for submission of objections and consider the objections, if any, received within the period specified.
Provided further that any resolution passed for abolishing an existing tax or for reducingthe rate of tax at which it is levied, shall be reported to the officer authorised by the Government for this purpose and such reduction or abolition shall not be carried out into effect without the sanction of the officer authorised by the Government for this purpose:
Provided also that, where any resolution under this rule has been put into effect for a particular year, no proposal to alter the rates or date of effect fixed in such resolution shall be taken into consideration in that year by the Panchayat.
4. Publication of new taxes. — If a Panchayat, subject to the provisions in these rules, decides to levy any tax for the first time or at a new rate, the Secretary shall publish forthwith a notice on the Notice Board of the Panchayat and at places specified by the Panchayat specifying the rate at which, the date from which and the period if any, for which such tax shall be levied and this information shall be advertised by using pamphlets and loudspeakers.
* Published in K.G. Ex. No. 1133 dt.2-8-2001. G.O. No.l8619/Nl/2000/LSGD. ** As amended on S.R.O.No1022/2003 in Kerala Gazette Extra Ordinary dated,31-10-2003, G.O.(P) No.320/2003/LSGD.
.Secretary to maintain assessment books. —
(1) The Secretary shall maintain theassessment books in the specified form and such books shall contain the name and details of the persons and properties which may be liable to be taxed under the Act.
(2) Notwithstanding anything contrary contained in any other rules issued under the Act, the assessment books and where detailed particulars relating to any assessment of tax are kept in separate records, the portion thereof containing such particulars, shall be kept open at all reasonable times for inspection, free of charge, by any person who pays any tax to the panchayat or his authorised agent and such person or agent shall be entitled to take extracts, free of charge, from any part of such books and records.
(3) Notwithstanding anything contrary contained in any other rules issued under the Act, the account books of the Panchayat shall be kept open on any day or days fixed by the Panchayat in each month for inspection, free of charge, by any person who pays any tax to the Panchayat or his authorised agent.
6. **Secretary to assess tax. — The Secretary shall, save as otherwise provided in the Act and the rules made thereunder, assess the tax which each person is liable to pay:
7. ** Powers of Standing Committee for Financto give directions to amend assessment books. — (1) If it appears to the **Standing Committee for Finance at any time that any person or property has been inadequately assessed or that such person or property has been inadvertently or improperly omitted from the assessment books or that there is any clerical or arithmetical error in the said books relating to any tax, it may direct the **Secretary to amend the said books in such manner as it may deem just or necessary:
Provided that where it involve an increase in the tax or any imposition of fresh tax, no such direction shall be given, unless the person concerned has been given a reasonable opportunity to show cause before the Standing Committee for Finance as to why the assessment books should be amended as proposed.
(2) Such amendment shall be deemed to have come into force from the current year on which the circumstances justifying the amendment was in existence or in the two half years immediately preceding the amendment whichever is earlier.
8. Service of Bill. — (1) Where any tax is due from any person, the Secretary shall, save as otherwise provided in the Act or rules made thereunder, serve upon such person a bill for the sum due.
(2) The bill under sub-rule (1) shall be signed by the Secretary and shall contain the following matters,-
(a) the date of issue thereof;
(b) the period or periods for which the tax is levied and a statement regarding that period or periods.
(c) description of the occupation, building, land or property for which the tax is levied;
(d) the last date or dates for the payment of tax; and
(e) a statement regarding the liability for default, if any, made in remittance of money.
(3) Where a bill referred to in sub-rule (1) relating to profession tax has not been served either in the half year to which the tax is related or in the succeeding half year, the tax for the half year first mentioned shall not be demanded.
9. Issuance of receipt. —
(1) The Secretary shall, to every person making payment of tax, issue a receipt signed by him or by any other person duly authorised by him for that purpose.
(2) Such receipts shall specify the following matters,-
(a) the date of issue;
(b) name of the person to whom it is issued;
(c) the tax in respect of which remittance has been made;
(d) the period for which payment has been made; and
(e) the amount paid in (in figures and words).
10. Appeal. — (1) Appeal shall lie ** to the Standing Committee for Finance in respect of any assessment and levy of any tax made by the ** Secretary.
(2) Appeal shall be filed in writing within 30 days from the date of receipt of the bill under
sub-rule (1) of Rule 8 and shall specify the objections and reasons for appeal precisely and distinctly.
11. Procedure on appeal. — The **Standing Committee for Finance may on its own motion or otherwise, within fifteen days of service of notice to the person concerned and after considering the objections, if any, submitted by him after service of notice, cancel or modify any **Orders of the Secretary reducing, or remissioning or enhancing a tax.
12. **Revision on decision of Standing Committee for Finance.-
(1) Any person having objection on the decision taken by the Standing Committee for Finance under rule 11 may, where he is aggrieved of a notice so issued or other action taken by the Standing Committee for Finance, file revision petition before the Tribunal for the Local Self Government Institutions constituted under section 271S of the Act.
(2) No appeal or revision shall lie against the imposition of tax unless the tax mentioned in the demand notice has been remitted.
13. Implementation of the decision on appeal. — The assessment books shall be corrected in accordance with the decision on the appeal and in the event of reduction or remission of tax, the excess amount remitted shall be refunded:
Provided that if any sum is due to the Panchayat from the assessee that may be set off against such sum to be refunded and if there is no such sum due and if the assessee requests the president to adjust the said sum towards any amount that may become payable by him in future and it shall be credited accordingly.
14. Notice to be served before enforcing provisions of distraint. — (1) The Secretary shall, where any tax due from any person has not been remitted on or before the due date, serveupon such person a demand notice requiring him to pay the tax together with notice fee of two rupee and the cost of service of the notice if sent by registered post, within fifteen days from the date of service of notice, before taking the proceedings under Section 210 of Act.
(2) Notice under sub-rule (1) shall be signed by the Secretary and shall contain the following matters,-
(a) a statement regarding the period for which the tax is imposed, and description regarding the occupation, property or institution on which the tax is imposed;
(b) the amount of tax, fee of demand notice and cost of notice is sent by registered post;
(c) the date from which tax is due; and
(d) statement of the liability incurred on account of the default in remitting money.
15. Recovery by distraint. — If the amount due on account of any tax together with the fee of demand notice and the cost of service of the notice is not paid within fifteen days from the date of service of the notice and if the person from whom the tax is due has not shown cause to the satisfaction of the Secretary as to why it should not be remitted, the Secretary may, by distraint under warrant and by sale of the movable property of the defaulter, recover the amount due on account of the tax together with demand notice fee, cost of service of notice, warrant fee including the distraint fee together with such further sum that is sufficient for a meeting the actual expenses for the safe custody and sale of the property so distrained;
Provided that movable property described in the proviso to Section 60 of the Code of Civil Procedure, 1908, shall not be distrained.
(2) The warrant under sub-rule (1) shall be in Form No. 1 appended to these rules and for each such warrant a fee of five rupees shall be levied.
16. Civil suit for recovery of arrears.— Nothing contained herein shall bar the Panchayat from filing suit in a civil court for the recovery of any tax due to the Panchayat under the Act.
17. Power of the officer conferred with duty to execute warrant. — Any officer conferred with the duty to execute a warrant of distress under a special order of the Secretary in writing, it has reason to believe that any building contains property which is liable to be seized, may, in case it is not possible to obtain entry otherwise even after informing his authority and purpose and making a proper request for entry to execute distress, open or break open any outer or inner door or window or other obstruction in such building or cause the same to be done between sunrise and sunset:
Provided that such officer shall not enter or break open the door of any room apportioned for the use of women until three hours, notice of his intention has been given and an opportunity has been given to such women to withdraw.
18. Procedure for seizure of property. — The officer conferred with the duty to execute a warrant shall, before making the distraint, demand the remittance of the tax due and the warrant fee. If the tax and fee are remitted no distraint shall be made, but where the tax or fee is not remitted, the officer shall, -
(a) seize the movable property of the defaulter as he may think necessary;
(b) make an inventory of the property seized in the presence of two witnesses; and
(c) give to the person in possession of the property seized, at the time of the seizure, a copy of the inventory and sale notice in Form No.2 appended to these rules;
Provided that a period of seven days shall be allowed for remitting the amount due and redeeming the property seized.
19. Distress not to be excessive. — The cost of the properties distrained shall, as far as possible, be equal to the sum total amount of the tax due from the defaulter together with all expenses that may be incurred on account of the warrant, distraint, keeping in safe custody and sale.
20. Sale of property distrained. — (1) If the amount due from the defaulter on account of tax, warrant fee, distraint fee and the expenses incurred on account of the safe custody of properties are not remitted within the period of seven days mentioned in the notice given under Rule 18 and if the distraint warrant is not suspended by the Secretary, the properties seized or a sufficient portion thereof shall be sold by public auction under the orders of the Secretary who shall apply the proceeds of the sale for the payment of the amount due on account of the tax, the warrant fee, the distraint fee and the expenses incurred on account of the detention and sale of property and shall return any property or sum which remains after the application of the sale proceeds as aforesaid to the person in whose possession the property was at the time of seizure.
If the proceeds of the sale are insufficient for the payment of the amount due on account of the tax, the warrant fee and distraint fee and the expenses incurred on account of the detention and sale of the property, the Secretary may again proceed under Rule 15 in respect of the sum remaining unpaid.
(2) The Secretary may sell the properties seized at any time before the expiry of the said period of seven days if the properties seized are subject to speedy and natural decay and the amount due is not paid soon.
(3) The distrainor shall, if the defaulter agrees to remit the arrears for the realisation of which the property has been distrained, together with incidental expenses, before the date of sale, receive the amount, issue receipt and release the property forthwith.
21. Secretary to consider objections. — The Secretary shall consider any objection submitted within the said period of seven days regarding the distraint made and may postpone the sale pending investigation thereof. If the Secretary decides that the property attached should not have been distrained, he shall return it or if it has already been sold out, give the amount obtained out of the sale to the person found to be entitled thereto. The Secretary may, if he is convinced that the first defaulter wilfully permitted the distraint of the property when it was not liable to such distraint to his knowledge again take the proceedings under Rule 15, and shall recover from the defaulter all fees and expenses connected with the first distraint and sale.
22. Power of Government to call for records. — The Government or any officer authorised by the Government in this behalf may, call for the records relating to any distraint of any property made under these rules and after conducting such inquiry as they or he may deem fit, pass such orders as are found necessary. The Secretary shall enforce such orders.
23. Levy of fees on distraint. —
(1) There shall be levied fees on distraints made under these rules according to the value of the property distrained and the rates specified below:
The Sum distrained for Fees
(1) (2)
Rs. Ps.
Upto rupees 10 2 00
Above rupees 10 and upto rupees 25 5 00
Above rupees 25 and upto rupees 50 10 00
Above rupees 50 and upto rupees 100 20 00
Above rupees 100, 2 .00 rupees each for every 10 rupees
(2) The above rates shall include all expenses to keep the property distrained.
(3) The fees levied under this rule shall not include the cost of maintenance of any livestock
distrained.
24. Distraint to be confined to properties within the Panchayat area. — The property of a person who is in default under Rule 15 may be distrained wherever it may be found within the Panchayat area.
25. []
26. Realisation of tax, from a person who has left the State or cannot be found. —If any tax due from any person remains unpaid in whole or in part at the end of the period specified in Rule 15 and if such person has left the State or cannot be found, the said tax or such part thereof as remains unpaid together with all sums payable in connection therewith shall be recoverable as if it were an arrears of land revenue.
27. Magistrate to recover tax, warrant fee etc.— (1) Any person subjected to
prosecution under the second proviso to Section 210, if proved to the satisfaction of the Magistrate to have wilfully defaulted payment of the amount due or have wilfully obstructed the distraint or sufficient distraint, shall be liable to pay,-
(a) the tax and warrant fee if any; and
(b) the distraint fee, if distraint has taken place, the expenses, if any, incurred on account
of the detention and sale of the property distrained and fine not exceeding twice the amount that is due from him.
(2) Whenever any person is convicted of an offence under sub-rule (1), the Magistrate
shall, in addition to any fine which may be imposed, by summary disposal recover amounts, if any, due under the items specified in clauses (a) and (b) of sub-rule (1) and also recover such amounts as may be fixed by him, if any, as costs of the prosecution proceedings and pay the same to the panchayat.
28. The Secretary, Panchayat Employees and the Committee Members not to
purchase any property directly or indirectly. — The Secretary, any panchayat employee or any member of the Panchayat Committee shall not directly or indirectly purchase any property at any sale of distrained property held under these rules.
APPENDIX
FORM 1
[See sub-rule (2) of Rule 15]
Warrant No..........................
To
......................................................... (Here enter the name of the officer
......................................................... charged with execution of warrant)
…………………………………………………………………………………
…………………………………………………………………………………
(Specify the tax or taxes due and if any, in respect of which the tax or taxes are due).
WHEREAS......................................................(Here enter the name of the defaulter)
of ........................... (Here enter the address) has not paid or shown sufficient cause for the
non-payment of the sum of Rs........Ps.......due from him as tax or taxes including penalty and
expenses as detailed above for the................ (state the assessment year) ending...................
(state the last month of the assessment year) although the said ...................(state the sum) has
been duly demanded from the said........................... (state the name).
AND WHEREAS fifteen days have elapsed since such demand was made;
NOW, THEREFORE, you are commanded to demand the said sum of Rs ........ Ps.......
together with Rupees five as warrant fee , failing payment of which you are to distrain the
movable properties of the said................... (state the name) to the amount of the said sum of
Rs .......Ps.......together with Rs.........Ps...... for warrant fee and distraint fee, making together
a sum of Rs .......Ps.......and such further sum as may be sufficient to defray the charges of
keeping such distraint in custody and sale and failing payment of the amount due on account of the said tax or taxes and fee together with such further sum as may be sufficient to defray the charges of keeping such distraint in custody and sale within seven days next after such distraint you are to sell the said movable properties under orders to be hereafter issued by me and to remit to the Panchayat office the sale proceeds of the distrained property out of which the amount remaining after deduction of the amount due on account of the said taxes, fines and fees, viz. Rs....... Ps ....... and the charges of keeping and selling such distrained property shall be credited to the Panchayat fund and the amount, if any, yet remaining, shall be refunded to the owner of the movable properties distrained. If it becomes impossible to effect the distraint or sufficient distraint of the movable properties of the said ................... (state the name ) you are to submit a certificate stating the same along with the warrant.
Place: (Signature)
Date: Secretary.
FORM 2
FORM OF INVENTORY AND NOTICE
(See Rule 18)
I.................. (state the particulars of the movable properties seized)]
Take notice that I have this day seized the movable properties specified in the above
inventory for the sum of Rs ........Ps........ due as tax or taxes mentioned in the margin for the
........ (state the assessment year) ending....................... (state the last month of the assessment
year) ; and that unless you remit in the office of ...................Panchayat the above said amount
together with the warrant fee, the distraint fee and the cost for keeping the goods and chattels,
within seven days from the date of this notice, the above said movable properties will be sold on ........... day of ...............at the Panchayat Office or at such other place as the Secretary may direct and that the goods and chattels may be sold at any previous date, if they are liable to speedy and natural decay.
Place: Signature of Officer
Date : Executing distress warrant
Explanatory Note
(This does not form part of the Notification , but is intended to indicate its general purpose.)
Government have decided to make rules for the tax assessments tax levy appeal, distraint proceedings for the recovery of tax, etc., as per sub-section (1) of Section 254 of the Kerala Panchayat Raj Act, 1994 (13 of 1994). Hence this Notification.