199. Surcharge on tax on direction by the Government

  1. The Government may by order published in the Gazette, direct any village panchayat to levy from the whole panchayat area a surcharge not exceeding five per cent on the tax leviable under this Act by that panchayat at such rate and with effect from such date (not being earlier than first day of the half year immediately following that in which the order is published] as may be specified in the order, to cover any expenses to be incurred by the district panchayat and block panchayats in respect of any plan, project or work.
  2. Any surcharge levied under this section shall be demanded and collected by the village panchayat in the same manner as if it were the tax levied under this Act and distributed to the block panchayat and district panchayat in the manner prescribed after deducting three per cent thereof towards collection charges.
  3. 144 [No surcharge under sub-section (1) shall be directed to be levied unless prior sanction of concerned panchayat is obtained for the implementation of such scheme, project or work.]

144Added by Act 13 of 1992.