Annexure-XVI Certain best practices suggested in the 12th/13th CFC Report (Para 8.19) Levy of certain major taxes and exploitation of non-tax revenue sources be made obligatory for the panchayats. The minimum rates for all such levies be fixed by the state government; A minimum revenue collection from the Panchayat taxes be insisted; Incentive grants related to revenue collection beyond a prescribed minimum be introduced by the state government; User charges be made obligatory levies; All common property resources vested in Local Bodies be identified, listed and made productive of revenue; Valuation of taxable lands and buildings be done by a separate cell in the State Government and not left to the panchayats; Powers to levy a tax, surcharge/cuss on agricultural holdings be given to the intermediate or district panchayats; Revenue transfers from the states to Local Bodies in the form of revenue sharing/ revenue assignment be made statutory in nature; State governments to desist from unilaterally taking decisions in regard to revenues whose proceeds are to be transferred either in full or in part to the Local Bodies; The quantum of revenue that a Local Bodies can reasonably expect under the revenue sharing mechanism be predictable. This can be based on the tax GDP ratio. State government to adhere to its commitment in regard to the grants in-aid; all untied grants to the panchayats be made statutory in nature. The State Panchayati Raj Act to include such a provision. SFC be constituted for a lifespan of 18 months and a time limit of six months be prescribed for a state government to act on the SFC recommendations; The maintenance of accounts be standardized. State department officials be made statutory auditors of the village panchayats; the accounts of the intermediate and district panchayats be subjected to audit by Comptroller and Auditor General;
Annexure-XVI Certain best practices suggested in the 12th/13th CFC Report (Para 8.19) Levy of certain major taxes and exploitation of non-tax revenue sources be made obligatory for the panchayats. The minimum rates for all such levies be fixed by the state government; A minimum revenue collection from the Panchayat taxes be insisted; Incentive grants related to revenue collection beyond a prescribed minimum be introduced by the state government; User charges be made obligatory levies; All common property resources vested in Local Bodies be identified, listed and made productive of revenue; Valuation of taxable lands and buildings be done by a separate cell in the State Government and not left to the panchayats; Powers to levy a tax, surcharge/cuss on agricultural holdings be given to the intermediate or district panchayats; Revenue transfers from the states to Local Bodies in the form of revenue sharing/ revenue assignment be made statutory in nature; State governments to desist from unilaterally taking decisions in regard to revenues whose proceeds are to be transferred either in full or in part to the Local Bodies; The quantum of revenue that a Local Bodies can reasonably expect under the revenue sharing mechanism be predictable. This can be based on the tax GDP ratio. State government to adhere to its commitment in regard to the grants in-aid; all untied grants to the panchayats be made statutory in nature. The State Panchayati Raj Act to include such a provision. SFC be constituted for a lifespan of 18 months and a time limit of six months be prescribed for a state government to act on the SFC recommendations; The maintenance of accounts be standardized. State department officials be made statutory auditors of the village panchayats; the accounts of the intermediate and district panchayats be subjected to audit by Comptroller and Auditor General;