732 GOVERNMENT ORDERS
k. In respect of the demandoutstanding beyond two (2) years, provision shall be made to the extent of income of the Panchayat in the demand, based on the following provisioning norms:
- Outstanding for more than 2 year but not exceeding 3 years: 25%
- Outstanding for more than 3 years but not exceeding 4 years: 50% (additional 25%)
- Outstanding for more than 4 years but not exceeding 5 years: 75% (additional 25%)
- Outstanding for more than 5 years: 100% (additional 25%)
I. While making provision for receivables as stated above, the relevant proportion 'State Govt. Levies in Property Taxes - Control account shall also be provided by debiting to a separate account.
m. Any additional provision for demand outstanding (net on overall basis) required to be made during the yearshall be recognised as expenditure and any excess provision written back during the year shall be recognised as income of the Panchayat.
n. Refunds and remissions of taxes for the current yearshall be adjusted against the income and if they pertain to previous years, they shall be treated as prior period expense, wherever applicable.
o. Write-offs of taxes shall be adjusted against the provisions made and to that extent the recoverable amountshall get reduced.
p. Any subsequent Collection or recovery of 'Receivables for Property Tax which was already written off shall be recognised as a “Prior Period Income'.
q. Demands raised with retrospective effect shall be treated as “Prior Period income to the extent it pertains to earlier years.
r. In cases of revisions to demand, if related to earlier years, any increase in demand shall be treated as Prior Period Income' and any decrease in demand shall be treated as 'Prior Period Expense'.
S. Part-payments received shall be first adjusted against penal interest, arrear demand and current demand in the listed order. The adjustments against demand shall be proportionately divided between Property Tax and Library Cess.
t. Advance/excess payment of taxes shall be treated as a liability till the tax becomes due, at which point, it shall be adjusted against receivables.
u. In the case of self-assessment of tax, income shall be accrued based on records available with the Panchayat when it becomes due as per the provisions of the Act. Further, changes arising out of self-assessment will be treated as "Change in Demand and will be accounted accordingly.
a. Revenue in respect of Water Charges and Water Meter Rent shall be recognised in the period in which they become due and demands are ascertainable.
b. Revenue in respect of Notice Fee, Warrant Fee and Other Fees shall be recognised when the bills for the same are raised.
c. Revenue in respect of Connection Charges for Water Supply shall be recognised on actual receipt.
d. Revenue in respect of Water Tank Charges, Road Cutting Charges and Penalties shall be recognised on actual receipt
e. In respect of the demand outstanding beyond two (2) years, provision shall be made to the extent of income of the Panchayat in the demand as follows:
- Outstanding for more than 2 year but not exceeding 3 years: 50%
- Outstanding for more than 3 years: 100% (additional 50%).
f. Any additional provision for demandoutstanding (neton overall basis) required to be made du ring the year shall be recognised as expenditure and any excess provision written back during the year shall be recognised as income of the Panchayat,
g. Refunds, remissions of taxes/charges for the Current year shall be adjusted against the income and if they pertain to previous years then they shall be treated as prior period expense.
h. Write-offs of taxes/charges shall be adjusted against the provisions made and to that extent the recoverable amount gets reduced.