Transcript Panchayat Level Revenue Resources in Andhra Pradesh

Revenues of
P.R.Institutions of
Andhra Pradesh
Profile of Panchayats in Andhra Pradesh
District Panchayats
Intermediate Panchayats
Village Panchayats
(Z.P) (MP) (GP) -
22
1098
21807
Panchayat Finance in Andhra Pradesh
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Under the provisions of AP PR Act1994 ,Only
the Gram Panchayats are empowered to levy &
collect taxes.
The ZP/MP have no taxation powers.
However the ZP/MP get some revenue through
Rents/ Leases etc.
Panchayat Fund
All the money received by PRIs. is constituted into
Panchayat fund.
Panchayat fund consists of
1.Own Revenues
2. Assigned Revenues
3. Grants
(Taxes & Non.Taxes etc.,)
(Transfer duty, Entertainment Tax)
(Central & State)
i) Untied grants (General purpose grants)
ii) Tied grants (Specific purpose grants)
Revenue Structure of PRIs
Own Revenue:
a)
Mandatory Taxes
House tax
2. Tax on Advertisement
3. Special taxes on Houses
1.
i.
ii.
iii.
Drainage tax
Lighting tax
Water tax
b) Optional Taxes
1. Vehicle tax
2. Tax on Agricultural land
3. vacant land tax
c) Non-Taxes – Fees and Fines
1.
2.
3.
4.
5.
6.
7.
8.
Licence fee (Trades & Business)
Encroachment fee
Layout fee
Permission fee for Buildings
Monthly fee on Tap connections
Fines
Fishery Rentals
Ferry Rents
House tax
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House tax is levied on the basis of Annual Rental value
or capital value basis
Prior to 2000-2001 general revision of house tax was
done once in 5 years. From 2000-2001 onwards house
tax is increased at a flat rate of 5% every year.
Special Tax on Houses
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Gram Panchayats levy special taxes on houses,
in the shape of water, drainage & lighting tax
In addition to this 8 Ps in every rupee is
collected towards library cess
Library cess amount collected is transferred to
Department of Libraries
Rates of Special Taxes
Nature of tax
Maximum rate
Minimum rate
--
20%
a)
Water supply
b)
Lighting tax
10%
5%
c)
Drainage tax
15%
10%
Government has issued orders in 2002 for collection of actual expenditure
on lighting, water etc., as to cover O&M cost as user charges.
Rates of House Tax
Minimum
Rate PA
Basis of levy
Maximum
Rate PA
On capital value basis (CV)
1/8 % of CV
1% of CV
On annual rental value basis (ARV)
2% of ARV
20% of ARV
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Buildings exempted from House Tax:
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Cattle Pounds
Cattle Sheds
Poultry Sheds
Dairy Sheds
Buildings of Union Government
NGO’s home
Advertisement Tax
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The advertisement tax is collected by the Gram
Panchayats on every advertisement which is
erected , exhibited or displayed to public view.
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This tax is not collected on any advertisement or
notice relating to
 Public meeting
 Business of railway administration
 Election related matters
Rates of Advertisement Tax
In Rupees
Sl.
No.
1
2
Particulars
Maximum
amount
per annum
Non illuminated:
a. Space upto 1 Sq. Mtr
4.50
b. For a space over 1.00 Sq. Mtr
9.25
c. For every additional 2.50 Sq. Mtr
or part thereof
6.75
Illuminated:
a. For a space upto 5.00 Sq.Mtrs
32.50
b. For every additional 5.00 Sq.Mtrs.
32.50
Vehicle Tax
Vehicle tax is collected by the Gram Panchayats on any kind of
carriage, car, bicycle, rickshaw, etc., other than motor vehicles. The
rates are indicated below.
In Rupees
Description of Vehicle
Maximum Tax
Minimum Tax
Four-wheeled vehicle drawn by animals
50.00
20.00
Two-wheeled vehicle drawn by animals
20.00
10.00
Bicycle
10.00
5.00
This tax is more in the nature of regulatory measure, rather than a
revenue yielding sources
Assigned revenues
The assigned revenues of Panchayats are (2) types
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Tax revenue or revenue assignments
Profession tax
 Entertainment tax
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Tax supplement or revenue sharing
Surcharge on stamp duty
 Seigniorage fees
 Water cess
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Profession tax
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Upto 1987 profession tax was collected by Gram
Panchayats
From 1987 profession tax is collected by
commercial tax department
95% of profession tax collected is passed on the
local bodies by making provision in PR budget
The amount is distributed to Gram Panchayats
on Per capita basis
Entertainment Tax
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Entertainment tax is collected under AP
Entertainment Tax Act, 1939
90% of the proceeds of tax collection is adjusted
to Gram Panchayat, Mandal Parishads in the
ratio of 60:40
of the 10% balance, 3% is credited to film
development corporation and 7% is retained by
Government as Estt. Charges
Surcharge on stamp duty
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PRIs are allowed Transfer duty (Surcharge on
stamp duty) @2% on the value of transaction
over and above stamp duty of 7% and
registration fee of 0.5%.
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This transfer duty assigned to Gram Panchayat,
Mandal Parishad and Zilla Parishads in the ratio
of 60:20:20
Seigniorage fee
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Seigniorage fee (Cess on Minor Minerals) is collected
by Mines & Geology department
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Sand Auctions are however being conducted at
District level
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Seigniorage fee collected by Mines department is
adjusted to State funds
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Seigniorage fee is released to Panchayat Raj
Institutions through budgetary provision
The Apportionment is
Zilla Parishad
25%
Mandal Parishad
50%
Gram panchayat
25%
Seignior age fee is released only to those Gram
Panchayats from where actual Mining was done
General purpose grants (Untied grants)
1.
Per Capita Grant
a) Zilla Parishad @ Rs.4/b) Mandal Parishad @ Rs.8c) Gram Panchayat @ Rs.4/-
2.
Incentive Grants for Tax collection
3
Incentive Grants for Unanimous Election
Grants – in -aid
a)
b)
c)
d)
e)
f)
Salary grant
Honorarium & TA to non officials
Per Capita grant
BRGF
Central /State Finance Commission grant
Engineering grants
i) Rural Water Supply
ii) Rural Sanitation
iii) Roads & Bridges
iv) School buildings etc.,
General funds of PRIs.
The General funds of PRIs consist of :
a) Taxes & Non-Taxes.
b) Assigned Revenues.
c) General Purpose grants (Untied funds).
Utilisation of General Funds
The Zilla Parishad / Mandal parishad general funds are utilized for
1. Maintenance of existing Assets
34%
2. Development of SCs
15%
3. Development of STs
6%
4. Development of Women & Children
15%
5. Office Administration
6. Drinking Water in emergencies
16%
9%
7. Contingencies
4%
--------------Total: 100%
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Lodging of funds:
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Under the provisions of AP.PR Act, 1994 all the funds received by the
Panchayats are to be lodged in the Govt. Treasury only.
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The funds are kept in separate deposit accounts under the head
8448
MH(109)
SH(01)
SH(02)
SH(03)
001
002
005
-
Deposits of Local Fund
Panchayat funds
G.P. funds
M.P. funds
Z.P. funds
General funds
Education funds
Spl.Development funds
Categorization of funds at Treasury:
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The Panchayat funds lodged in Treasury are categorized as Lapsable funds
and Non-lapsable funds.
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The General funds of PRIs are Non-lapsable.
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The Salaries and TA grants are lapsed in the same financial year.
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The specific purpose grants released during a financial year are available
for utilisation till the end of next financial year.
The Treasury authorities will credited back to Government the unspent
balances as on 31st March which are lapsed out of Lapsable grants.
Z.P. Engineering funds:
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With effect from 01.04.2001 the grants meant for works programme in
respect of Zilla Parishads are released to Pay & Accounts Officer.
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The accounts are maintained by the P.A.O. and bills are paid after pre-audit.
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However, the Receipts and Expenditure of Engineering grants are
incorporated in the Budget and the Annual Accounts of Zilla Parishads.
Financial Statements
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The Executive Officer place before the General Body
quarterly a statement of Financial position.
This
contains
a. Balance under each Account
b. The amount of outstanding bills pending payment
c. The demand collection & balance of own revenues
d. The amount of estimated expenditure for the
remaining months of the year
e. This will help the Panchayats to know its financial
position and plan its activities.
AUDIT
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The statutory Auditor of Panchayat Raj Institutions is
the Director State Audit
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The Statutory Auditor has the power to surcharge the
loss for irregular payments against the officer responsible
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The Director of State Audi works under the Technical supervision and
control of C & AG
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In addition to statutory audit the Accountant General also conduct Test
Audit