The Kerala Panchayat Raj (Service Tax) Rules, 1995


1. Short title and commencement. —

(I) These rules may be called the Kerala Panchayat Raj (Service Tax) Rules, 1995.

(2) 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);

(b) 'Service Tax' means service tax leviable under sub-section (2) of Section 200 of the Act;

(c) 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. Levying of -Service Tax.

(1) A Village Panchayat may -collect each year an amount of a fixed percentage; of the annual value of the building as service lax, at the rate fixed by the Village Panchayat from the owner of every building situated in the area of the Village Panchayat for meeting the expenses for providing and continuing of any facility of sanitation, water supply, street lighting, drainage, scavenging in1 the land in which the said building is situated or in the area appurtenant thereto;

Provided that, the Service, Tax so collected shall not be less than the rate provided in rule 4

Explanation -For the purpose of this rule, the annual value of a building means the annual value determined for the purpose of levying of property tax for the said building and the land appurtenant thereto under secti6n 203 and in the case of buildings exempted from property lax under the provisions of the Act, the annual value shall be calculated in the same manner.

(2)The Village Panchayat may, on the ground that any .of \he facilities referred to-in sub rule (1) has not been provided in any area of the Panchayat, exempt a building situated in the said area from the respective service tax.

(3) The service tax levied for each year, may be collected in two half yearly installment

* Published in K.G. No.l 130 dl.2nd August 2001. as G.O. No.46474/Nl/98/LSGD. As amended by S.R.O.No.176/2001, dt.13-11-2002 No.1654


"4. Rates of Service Tax. — The Service tax levied under rule 3 shall not be less than the following rates, namely:—

(1) For sanitation purpose for the expanses for preserving the general sanitation and for removing of the half per rubbish', filth and carcasses of animals and birds)

One and a cent

(2) For water supply of the expenses for water supply systems including street taps)

Two percent

(3) Of the expenses for providing and maintaining of streetlights

Two percent

(4) Of the expenses for drainage scavenging etc.

Half per cent.

5. Procedure for the collection of service tax. — The rules and procedure for the assessment, levy and collection of building tax issued under Section 203 of the Act shall be observed mutatis mutandis for the assessment, levy and collection of service tax.

6. Fees or service charge may be collected for providing special facilities. — Tie Village Panchayat may collect fee or service charge, at-the rate that may be determined by it, from the owner of a building, under section 198 of the Act, proportionate to the expense for providing the facility, in case where .the Panchayat has provided any special facility to any building separately and extentively, in addition to "the facilities generally provided as referred to in sub-rule (1) of rule 4, and such fee or service charge will not be included in the service tax levied under these rules.".

By order of the Governor, Secretary to Government

Explanatory Note

(This does not form part of the Notification, but is intended to indicate its general purport.) As per sub-section (2) of Section 200 of the Kerala Panchayat Raj Act, 1994 (13 of 1994) Village Panchayat may levy service tax, not exceeding at the rates prescribed, from wherever it has provided sanitation facilities, water supply, scavenging, street lighting and drainage. Government have decided to make rules for levying the service tax. This Notification is intended to achieve the above object.