(1) With effect from such date as the Government may by notification appoint, a beggary cess in the form of a surcharge on,-
(i) tax on lands and buildings;
(ii) tax on entry of goods into the local area for consumption, use or sale therein;
(iii) tax on vehicles;
(iv) tax on professions, trades, callings and employments, shall be levied in the area within the jurisdiction of every local authority under the relevant laws relating to the levy of such taxes at the rate of three paise for every rupee of the taxes so levied.
(2) The cess levied under sub-section (1) shall be collected by the local authority concerned as if the cess were a tax payable under the relevant laws for the time being in force and the provisions of the said laws relating to the levy and collection of the said tax shall apply in respect of the levy and collection of such cess subject to such modifications as may be prescribed.
(3) The local authority shall be entitled to deduct as the cost of collection ten percent of the amount collected under sub-section (2) and the balance shall be paid by such local authority to 1[the Committee constituted under sub-section (2) of section 30]1, within such time and in such manner as the Government may direct.
1. Substituted by Act 7 of 1982 w.e.f. 1.10.1981 2["(4) If a local authority fails to make payment of such balance amount within the time as directed by the Government under sub-section (3), the Government may make an order directing the person having the custody of the fund of the local authority concerned to pay such balance amount in priority to any other charge against such fund and such person shall so far as the amounts to the credit of such fund admit, be bound to comply with the order.
(5) Where the balance amount due from a local authority is not paid in compliance with the order of the Government under sub-section(4), the such amount shall be recoverable from such local authority in the same manner as an arrear of land revenue and the amount so recovered shall be credited to the Central Relief Fund"]2
1. Sub-sections (4) and (5) Inserted by Act 26 of 2003 w.e.f. 21.5.2003