Payment of lumpsum by owner of factory or contiguous group of houses

RULES RELATING TO PAYMENT OF LUMPSUM CONTRIBUTION BY
THE OWNER OF FACTORY OR CONTIGUOUS GROUP OF BUILDINGS
(G.O.Ms.No.594, P.R., R.D. & Relief (Pts. III) Dt. 11.8.1995)

In exercise of the powers conferred by sub-section (l) of Section 268 read With Section 72 Andhra Pradesh Panchayati Raj Act, 1994 (Acc No.II of 1994), the Governor of Andhra Pradesh, hereby makes the following rules relating to payment of lumpsum contribution by the owner of the factory or contiguous group of buildings.

RULES

1.   Short title: These rules may be called the Andhra Pradesh Panchayati Raj (Payment of lumpsum contribution by the owners of Factories or contiguous group of buildings in lieu of taxes) Rules 1995,

2.   Definitions : In these rules, unless the context otherwise requires:-

1. "Agreement" means the agrccment which a gram panchyat may arrive at with the owner of any factory or contiguous group of buildings with the sanction of the Government to receive lumpsum contribution in lieu of all or any of the taxes levied by it under the Act.
2. "financial year' means the year commencing on the 1st day of April.
3. Owner means the owner of any factory or contiguous group of buildings, as the case may be.

3.   Application by owner of factory or contiguous group of buildings: An owner desiring to arrive at an agreement, shall make an application not later than sixty days from the commencement of the financial year or, as the case may be, from the functioning of the factory or the occupation of buildings during any financial year in writing to the Gram Panchayat stating:-

1. 1. the amounts paid by him to the gram panchayat in respect of each of the taxes levied by the Gram Panchayat during the three financial years immediately preceding the year, or as the case may be, during the period of less than three years the factory has been functioning or the building has been occupied, immediately preceding the financial year, in which the application is made.
   2. the amount payable by the owner to the gram panchayat in respect of all or any of the taxes levied by the Gram panchayat during the financial year in which the application is made.
2. the details of the amenities provided by the owner in the factory or in the buildings on which the gram panchayat provides within the limits of its jurisdiction;
3. the expenditure incurred by the owner on each of the amenities provided by him during the period referred to in sub-clause (i) of clause (a) upto the date of the application;the lumpsum amounts which the owner proposes to pay to the Gram Panchayat in lieu of all or any of the taxes levied by the Gram Panchayat having regard to the amenities provided by the Gram Panchayat:

Provided where the Government happens to be the owner no application need be made to the Gram Panchayat. The Government may, themselves fix a lumpsum amount to be paid to the Gram Panchayat in consultation with the gram panchayat.

4.   Consideration of application by gram panchayat :On receipt of an application under rule 3, the gram panchayat shall consider the application and, subject to the provisions of the rules 7 and 8 pass, not later than sixty days from the date of receipt thereof, a resolution conveying its decision to the owner.

5.   Execution of agreement between gram panchayat and owner and its submission to district collector :- Where the Gram Panchayat agrees to accept the lumpsum amount proposed by the owner under clause (d) of rule 3, an agreement in Form—A appended to these rules shall be executed between the Gram Panchayat and the owner and the Gram Panchayat shall submit to the District Collector such agreement along with the following documents namely:

1. the application submitted by the owner.
2. the resolution passed by the gram panchayat.

6.   Submission of Application by the District Collector to Government: On receipt of the agreement and the documents specified in rule 5, the District Collector shall, within one month of their receipt, forward the same with his remarks to the Government for their sanction.

7.   Limitation for arriving at agreement : The amount of lumpsum contribution may not be disproportionate by less than the amount receivable by the Gram Panchayat in respect of taxes levied by it at the normal rate during the financial year in which the Application is made and shall be not less than 50 per cent of the amount receivable by the Gram Panchayat from the levy of taxes.

1. For all new units (Big, Medium) the compounding rate may be 70%
2. for a period of 5 years from the date of commencement of production. This concession may be applied even during the pre-production period.For small scale units, the compounding rate may be 60%
3. For big units (Large and medium) the compounding rate may be 80%

8.   Duration of validity of agreements : The agreement shall bc effective from the financial year in which it has been entered into and shall be valid for a period of three years and may. with the sanction of the Government, be renewed for a further period not exceeding three years:

Provided that, if during the period the agreement is effective, the Gram Panchayat enhances the rate of any of the taxes or imposes any new taxes, the agreement shall be subject to revision with the like sanction of the Government.

9.   Manner of referring disputes in reaching agreement : In the event of failure on the part of Gram Panchayat and the owner to arrive at an agreement, the matter shall be referred either by the gram panchayat or the owner to the Government through the District Collector who shall submit the same to the Government for decision with all the necessary documents and the decision of the Government in this regard shall be final.

FORM 'A'

Agreement for lumpsum contribution by the owner of the Factory or contiguous group of buildings in lieu of taxes levied by Gram Panchayat. The *. . . . . . . . . . . . . . . Owner of factory/contiguous group of buildings hereby agree to pay and the gram panchayat of. . . . . . . . . . ...agrees to receive a lumpsum contribution of Rs. . . . . . . . . . . . .in lieu of the tax/taxes specified below levied by the Gram Panchayat under the Andhra Pradesh Panchayat Raj Act 1994.

2.   This agreement shall be subject to the provisions of the Andhra Pradesh Panchayat Raj (Payment of lumpsum contribution by the owner of factories or contiguous group of buildings in lieu of taxes) Rules 1995 and shall be effective for the period commencing on the and ending on the. . . . . . . . . . . @ tax/taxes.

(1)
(2)
(3)
(4)

Signed. . . . . . . . . . . . . ..
Owner of . . . . . . . . . . . . . . or
Factory or contiguous group of buildings

Signed. . . . . . . . . . . . . . .
Sarpanch of the Gram Panchayat
of. . . . . . .. .. . . . . .

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@Strike out whichever not applicable
*Here enter the name of the owner of the factory or contiguous group of buildings.
**Here enter the name of the Gram Panchayat.