(1) Property and other taxes shall be accrued at the beginning of the year in accordance with Chapter 4 of these rules. The demand, collection and balance under property tax shall be monitored through the DCB Register in KMF No 24 referred to in rule 53(1)(a) above.
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(2) A suitable adjustment entry shall be passed after the end of the half year to reflect the correct amount of property tax income for the year, after considering the property tax declared and paid up to the end of the first half-year, and accounting for the compulsory assessments done by the Municipality.
(3) Rebate allowed on prompt payment of property tax shall be treated as an expense in the accounts through a journal voucher.
(4) Cess collected on behalf of the Government shall be treated as a liability for payment to the authorities. The collection charge due to the Municipality for cess collection shall be taken as income, and reduced from the amount payable to the authorities.
58. Provision for Unrealised Taxes– (1) On the amount of ‘receivable’, remaining outstanding on account of taxes a provision shall be made for unrealised taxes, at the end of the year, in accordance with the following norms:
(i) 25% of taxes outstanding for more than 2 years, but not exceeding 3 years;
(ii) 50% of taxes outstanding for more than 3 years, but not exceeding 4 years;
(iii) 75% of taxes outstanding for more than 4 years, but not exceeding 5 years;
(iv) 100% of taxes outstanding for more than 5 years.
(2) Such a provision is made on an overall basis in the books of account, and neither any change shall be made in the DCB Register, nor shall this be treated as a reduction of demand or write-off. Action shall be continued to be taken to collect the outstanding amounts by legal means provided under the Act.
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CHAPTER 10 PROCEDURE FOR ACCOUNTING OF WATER CHARGES