In the said rules, in rule 37-C,-
(i) for sub -rules (1), (2), (3) and (4) the following shall be substituted, namely:- “(1) The Planning Authority or the Local Authority as the case may be, shall levy development cess/ surcharge of 10% of the fee collected under rule 37-A for each of the sub–clause (i) and (ii) and 5% of the fee collected under rule 37-A(1) for sub clause (iii) and 50% of the fee collected under rule 37-A (1) for sub-clause (iv) of sub section (1) of section 18–A of the Act, while granting permission for development of land or building under section 17 or sections respectively.
(2) The Cess and Surcharge collected under Sub clause (i), (ii), (iii) and
(iv) of Sub section (1) of Section 18-A for carrying out any water supply scheme; for the purpose of formulation of ring roads; for the purpose of improving slums; for mass rapid transport system; respectively shall be deposited in a separate head of account by the Planning Authority / Local Authority which issues the building plan.
(3) The Cess and surcharge collected by the Planning Authority / Local Authority under sub clause (i), (iii) and (iv) of sub section (1) of Section 18-A shall be transferred to the concerned Authority/ Agency as per the directions issued by the Government from time to time by retaining 5% of the cess and surcharge collected as Service Charge.
(4) The surcharge collected under sub clause (ii) of Sub Section (1) of Section 18-A by the Local Authority shall be transferred to the Planning Authority after retaining 5% of the amount collected as service charge.
(ii) In the Note under rule 37-C, Sl No (iii) and (iv) shall be omitted.
By Order and in the name of the Governor of Karnataka, (Latha. K) Under Secretary to Government, (Development Authorities & Na Yo Se) Urban Development Department.