(1) 1[Eleven per cent] of the amount of tax referred to in sub-section (2) of section 3, shall be collected by the Department of Excise and Taxation in the manner, prescribed by that department for collection of the tax.
(2) The proceeds of the tax collected under sub-section
(1), shall be caused to be deposited by the Department of Excise and Taxation direct to the Fund in such manner and within such period, as may be prescribed.
6. The amount of tax credited to the Fund, shall be distributed amongst the Municipalities inproportion to their ratios of annual collection of octroi from the goods, on which octroi was being levied before coming into force of the Punjab Municipal Fund Act, 2006, to the total collection of octroi made from such goods during the financial year of 2005-06 in the State of Punjab:
2[Provided that the State Government may, by an order, decide the distribution of the amount of tax credited to the Fund amongst the Municipalities, which are constituted or which may be constituted on or after the commencement of the principal Act:]
3[Provided further that two over eleven per cent (2/11x100) of the amount of tax credited to the Fund and coming to the share of a Municipality, whose water supply and sewerage operations and maintenance works are assigned to the Punjab Water Supply and Sewerage Board under the provisions of the Punjab Water Supply and Sewerage Board Act, 1976 (Punjab Act 28 of 1976), shall be kept reserved by the Director:
Provided further that the Director shall provide such sum of money, out of the aforesaid amount kept reserved by him, to the Punjab Water Supply and Sewerage Board for undertaking the water supply and sewerage operations and maintenance works in a 1Substituted for words “Ten per cent” by Punjab Act No.10 of 2012, Section 3 2 Added by Punjab Act No.10 of 2012, Section 4 3 Inserted by Punjab Act No. 41 of 2013, Section 2 Collection and deposit of tax.
Distribution of amount of tax.
Municipalities including the establishment and miscellaneous expenditure, which he may, from time to time, consider necessary:
Provided further that if any money remains surplus out of the amount kept by the Director, then the State Government shall decide the purpose for its utilisation and direct him to act accordingly:
Provided further that in case there is any deficiency in the amount kept reserved by the Director, notwithstanding the percentage fixed up in the second proviso, the State Government may increase the percentage of the amount of tax credited to the Fund for this purpose.]
7. The Director shall maintain accounts of the amount credited to the Fund and the expenditure made out of the Fund, and shall quarterly reconcile such amount and expenditure with the District Treasury Officer, Punjab, Chandigarh and submit quarterly report in this regard to the State Government.
8. The amount of Fund shall be audited by the Comptroller and Auditor-General of India in accordance with the provisions of the Comptroller and Auditor-General's (Duties, Powers and conditions of Service) Act, 1971 (Central Act 56 of 1971).
9. The annual report in respect of the receipts into the Fund and distribution made out of the Fund to the 1[Municipalities and the Cantonment Board, Jalandhar and the Cantonment Board, Ferozepur], shall be prepared by the State Government and be submitted to the State Legislature.
10. The Government in the Department of Finance, immediately after the commencement of the Punjab Municipal Fund Act, 2006, shall give an amount of rupees one hundred crores as a one-time grant to the Department of Local Government, which shall be deposited in the Fund to meet and expenditure, to be incurred by the Municipalities during the interregnum period i.e. the period commencing from the date of abolition of octroi to the date of actual receipts in the Fund.