1. Where, according to the custom or usage of any business or trade of the agreement between the parties relating to any transaction any amount is charged to any party to the said transaction or collected under whatever name as being intended to be used for a charitable or religious purpose, i.e. amount so charged or collected (in Act called Dharmada) shall vest in the person charging or collecting the same as a trustee.
2. The amount charged or collected in the aforesaid manner shall be utilized in such manner as may be directed by a Committee consisting of members elected in the prescribed manner by persons engaged in the trade or business concerned.
3. Every person charging or collecting Dharmada shall, within such period from the close of the year for which his accounts are ordinarily kept as may be prescribed, submit an account of Dharmada charged or collected by him during such year in such form as may be prescribed to the Assistant Commissioner having jurisdiction or to the Committee referred to in subsection (2) as the State Government may by general or special order direct.
4. The Assistant Commissioner shall have power, upon a request made in that behalf by a Committee referred to in sub-section (2) to make such inquiry as he thinks fit to verify the correctness of the accounts submitted to him or to such Committee under sub-section (3).
5. the provisions of Chapter V shall not apply to Dharmada.