The Municipal Account Code, 1930

Published under section 240 of the Punjab Municipal Act, 1911 vide Punjab Government
Notification No. 11961 dated the 4th April, 1930, as corrected by Notification No. 18100,
dated the 28th May, 1930
hl485

CHAPTER I

General

I.1. Short title. - These rules may be called the Municipal Account Code, 1930.

I.2. Definitions. - In these rules, unless there is anything repugnant in the subject or the context
-

[(a) "Committee" or "Municipal Committee" except section 2A, means a Municipal

Committee or Municipal Council constituted or deemed to have been constituted by or
under this Act]

(aa) "Banker's deposit-at-call Receipt" means the acceptance in writing by a bank or

banker of liability to pay on demand the amount specified on such receipt;

[(aaa) "Director" means the Director, Urban Development Department, Haryana;]

(b) "Employee" means an officer or servant employed by the committee and includes a
Government servant in foreign service under the committee, but does not include a
Government servant doing work for the committee under the control of his departmental
superiors in Government service;

(c) "Goods" includes animals;

(d) "Government" means the [State] Government;

(e) "Head of Department" includes the Secretary, the Medical Officer of Health, the
Municipal Engineer, the senior medical officer of the medical institutions of a committee
and any other officer in charge of a separate department of the committee whom the
committee, with the sanction of the Commissioner the committee, with the sanction [ -
] of the Deputy Commissioner [-], may declare to be the head of a department for the
purpose of these rules;

(f) "Member" means a member of the committee;

(g) "Municipal Engineer" means the officer appointed by the committee to be in charge
of the Municipal Works Department;

[(h) "The Act" means the Haryana Municipal Act, 1973;]

(i) "Treasury" means a Government treasury or sub-treasury, or a bank to which the

Government treasury business has been made over, and includes the office of a banker
 or person acting as a banker with whom the municipal fund is deposited under the
provisions of sub-section (2) of section 54 of the Act;

(j) "Treasury Officer" means the officer in charge of a treasury, and includes a banker or
person acting as a banker with whom the municipal fund is deposited under the
provisions of sub-section (2) of section 54 of the Act.

I.3. Extension of time when the office is closed. - Wherever in these rules any act or
proceeding is directed or allowed to be done or taken on a certain day, then, if the office is
closed on that day, the act or proceeding shall be considered as done or taken in due time if it is
done or taken on the next day on which the office is open.

I.4. Powers of inspectors may be exercised by members and other specified officer. - The
powers conferred by these rules on an inspector may be exercised by a member or by the
Secretary or by an audit officer and by any other officer authorized by the committee in this
behalf and, in the case of an octroi or terminal tax inspector, by the Octroi or Terminal Tax
Superintendent.

I.5. Instructions of the Examiner Local Fund Accounts to be complied with in respect of
details. - In the matter of details connected with accounts not provided for in these rules, the
committee shall comply with the instructions of the Examiner, Local Fund Accounts, Punjab.

Examiner's Note

(1) The Municipal Account Code does not provide for maintenance of record of the amounts
received by the cashier from time to time and their disposal. Recently a case has been noticed in
which embezzlement took place and could not be detected by the disbursing officer for want of
such a record. It is, therefore, hereby directed under rule 1.5 of the Municipal Account Code
that a Cashier's Chest book should be kept by the Municipal Committees in the following form :-

Treasurer's Chest book

Debit (Receipts) Credit (Expenditure)
Month Number & Amount Month Details of Amount Total Daily balance in hand Initial of Remar
and Date of Total expenditure the
date receipt or including Secretary.
of voucher remittances
when cash to the
is received Treasury.
for
payment.
1 2 3 4 5 6 7 8 9 10 11
Rs. np. Rs. np. Rs. np. Rs. Ps.

2. The Chest book should contain day-to-day record of the Cash received and disbursed by the
Cashier. It will be the duty of the Secretary to ensure that all amounts received in the Municipal
Office are noted in Cash Chest and disbursed to the parties concerned or deposited into the
Municipal Fund. The chest book should be closed and balanced daily and initialled by the
Secretary in token of his having accepted the accuracy of the amount of cash in the hands of the
Cashier. If there is no separate cashier, the Secretary and all the heads of offices acting as
disbursing officers should maintain chest book for the cash handled by them.

3. The Chest book should be introduced with immediate effect.

(Examiner Circular Memo No. xix (32) 9/83.166, dated 6th September, 1957).

I.6. Unauthorised forms not to be used. - No forms other than those prescribed in these rules
shall be used by the committee except with the sanction of the Examiner, Local Fund Accounts,
Punjab [ - ].

I.7. The manner in which accounts are to be kept. - (1) Figures in the accounts shall be in
English characters and, the case of receipts given for money, in vernacular characters also, and
in all accounts and registers in the case of municipalities of the first class so far possible be kept
in English throughout.

(2) Books of accounts and forms and registers shall be substantially bound and paged before
being brought into use.

(3) No erasure shall be made in any account book register form, voucher or cheque, and if any
correction has to be made, it shall be made neatly in red ink and attested by the dated initials of
the head of the department or officer concerned, or, in the case of a cheque, by the signature of
the officer signing the cheque, and, in the case of a voucher, by the payee also.

I.8. Destruction of records, etc. to be done in accordance with the schedule. - Vouchers,
registers and other forms prescribed in these rules shall not be weeded or destroyed otherwise
than in accordance with the directions as to the disposal of records contained in the schedule to
these rules.

Examiner's Instructions. - Records should not be auctioned but should either be destroyed or
should be torn out and sent to Shri Gopal Paper Mills Ltd. P.O. Jamna Nagar, Railway Station
Jagadhri (District Ambala) who will pay for them at the rates approved by government from time
to time.

(Examiner Local Fund Accounts Memo No. XIX (26)-54/2280, dated 24th July, 1955 addressed to
President M.C. Moga).

CHAPTER II

Budget

II.1. Form of budget and date of submission. - The committee shall on or before the [15 day of
January] each year submit in duplicate through the Deputy Commissioner to the Commissioner
an estimate of its income and expenditure in the ensuing financial year (hereinafter called the
budget) in Form G. 1.
[Note. - While submitting the budget for sanction in duplicate it shall be certified by the officer forwarding the budget in his
forwarding note that extracts thereof relating to their respective departments had already been furnished to the heads of
departments concerned, as provided in rule II.7.]

II.2. Preparation of the first edition of the budget by the Secretary. - The first edition of the
budget shall be prepared by the Secretary in consultation with other heads of departments in
accordance with the following instructions :-
 (1) Columns 2, 3 and 4 (actual of the past year, sanctioned estimate of the current year
and actuals of the first eight months of the current year) on both the income and
expenditure sides of the form shall first be filled up.

(2) Column 5 (revised estimate of the current year) on both sides of the form shall then
be filled up, and if the actuals of the first eight months (column 4) and the probabilities of
the remaining four months indicate the likelihood of an excess or a deficit of income as
compared with the amount of such income entered in column 3 on the income side of
the form or a saving on the expenditure under any head entered in column 3 on the
expenditure side of the form, the necessary adjustment shall be made in column 5 on
both sides of the form so that the estimate of the balance with which the following year
will open may be as correct as possible, but no sum shall be entered in column 5 on the
expenditure side of the form in excess of the corresponding entry in column 3 unless the
excess expenditure has already been sanctioned under the provisions of rule II.9.

(3) Column 6 (estimate of the next year) on both sides of the form shall then be filled up,
and on the income side shall be entered such sums as the Secretary in consultation with
other heads of departments may consider likely to be received;

Provided that -

(a) no sums shall be shown as a contribution from Government unless intimation of

the probability of such a grant being made has been received, provided that the
estimated unspent balance at the end of the year of any contribution received
during the current year on in previous year shall be shown in its appropriate place
in column 6, the total of such unspent balances being deducted, from the amount
shown as "closing balance" in column 5 on the income side of the form for the
purpose of arriving at the amount to be shown as "opening balance" in column 6
on that side of the form;

(b) no sum shall be shown as a receipt from a loan or from new taxation unless the
raising of the loan or the imposition of the new taxation has actually been
sanctioned.

(4) Details of the sanctioned establishment shall be shown in Budget Schedule I of Form
G.

(5) All outstanding liabilities shall be entered in Budget Schedule-II of form G. 1.

II.3. Extract from the preliminary budget to be submitted to sub-committees. - (1) When the
first edition of the budget has been prepared under the provisions of rule II.2, if sub-committees
have been appointed by the committee, a copy of such portion of the budget as concerns it shall
be submitted to each sub-committee, which shall, by a date to be fixed by the committee,
return it with such remarks as it may deem necessary and with such proposals for new recurring
and non-recurring expenditure as it may deem desirable.

(2) If a sub-committee has not been appointed in respect of any department, or if any sub-
committee appointed in respect of any department fails to submit its proposals for new
expenditure by the date fixed by the committee, the head of the department concerned shall
submit his proposals to the Secretary.
II.4. Preliminary budget to be submitted to Finance Sub Committee. - When the remarks and
proposals of sub-committees or heads of departments, as the case may be, have been received
under the provisions of rule II.3, the first edition of the budget shall be laid before the Finance
Sub-Committee, if any, or, if there is no Finance Sub-Committee, before the President, together
a note showing -

(1) in respect of each department the amount by which the sum provisionally entered in
column 6 on the expenditure side of the form under the provisions of clause (3) of rule
II.2 exceeds or is less than the amount shown as the total income of that department in
column 6 on the income side of the form;

(2) the sum available for meeting expenditure in excess of the sums provisionally so
entered (i.e., the amount of the difference between the provisional total of column 6 on
the expenditure side of the form and the total of column 6 on the income side of the
form less the amount of the prescribed minimum balance);

(3) the remarks of each sub-committee and the proposals of each head of a department
and sub-committee for expenditure in excess of the amount provisionally entered in
column 6 on the expenditure side of the form

II.5. Passing of second edition of budget by Finance Sub-Committee. - (1) The Finance Sub
Committee, after considering the remarks and proposals of the other sub-committees and of
heads of departments and after making any changes in the figures submitted to it which it may
deem necessary, shall allocate the sum available for expenditure in excess of the sums
provisionally entered in column 6 in such manner as it may deem fit, and a second edition of the
budget embodying the decisions of the Finance Sub-Committee shall then be prepared, original
works which the Finance Sub-Committee proposes should be undertaken in the coming year
being entered in Budget Schedule III of Form G. 1., provided that nothing in this rule shall
prevent the committee from drawing up a programme of expenditure over a period of years in
accordance with which specified percentage of the available funds shall be allocated to the
different departments each year; and, if such a programme has been drawn up, the Finance
Sub-Committee shall be bound by it in allocating sums under the provisions of this rule.

(2) If there is no Finance Sub-Committee, the functions of such Sub- committee under the
provisions of sub-rule (1), shall be performed by the President.

II.6. Passing of the final edition of the budget by the committee. - (1) The second edition of
the budget shall in due course be laid before the committee by the Chairman of the Finance
Sub-Committee or the President, as the case may be, who, after explaining the estimates of
income and expenditure and the manner in which the sum available for expenditure over and
above the sum required to meet sanctioned charges has been allocated, shall move separate
resolutions for grants of the amounts required for expenditure in each department, whereupon
any member may move an amendment to any such resolution for the purpose of reducing the
amount of the grant demanded for any department, but no amendment shall be moved at this
stage for the purpose of increasing the grant demanded for any department.

(2) When all resolutions and amendments moved under the provisions of sub-rule (1) have been
decided, if any surplus is available for expenditure owing to reductions having been made in the
amount of the grant demanded for any department, any member may move a resolution for the
allocation of the whole or part of such surplus to any department of which the grant originally
demanded has not been reduced; and, when all such resolutions have been decided, the
Chairman of the Finance Sub Committee or the President, as the case may be, shall move a
resolution that the budget, as modified by the resolutions of the committee shall be passed.

(3) Nothing contained in this rule shall prevent the committee from having a general discussion
of the budget before demands for grants are moved if the bye-laws of the committee made
under section 31 of the Act provide for such a discussion.

II.7. Copies of extracts from the budget to be forwarded to Government departments. - As

soon as the final edition of the budget has been passed by the committee, copies of such
portions thereof as relate to their respective departments, together with a statement showing
the opening balance, total income, total expenditure and closing balance of the coming financial
year, shall be furnished to the Director, Health Services, [Director, Animal Husbandry] and
Inspector of Schools, [through the District Inspectors of Schools] so that they may make to the [
- ] Commissioner of the Division in the case of a municipality of the first class and the Deputy
Commissioner in case of a municipality of the second class any representation that they may
deem fit with respect to the provision made for medical relief, public health or education.

II.8. [(a) Any head of a department, to whom a copy of the budget has been forwarded under
the provisions of rule II.7, shall forward any representation that he may wish to make to
the [Commissioner of the Division or the Deputy Commissioner as the case may be] by the
twentieth day of February and the [Commissioner of the Division or the Deputy Commissioner
as the case may be] shall, after considering such representations, sanction the budget and
return it to the Committee by the twentieth day of March : provided that if the [Commissioner
of the Division or the Deputy Commissioner as the case may be], after considering the
representations, returns the whole budget, or reserves; any item thereof, for reconsideration by
the Committee or is unable otherwise to sanction the budget in time he may authorise the
Committee to incur expenditure within such limits as he may determine until such time as final
sanction is given.]

[(b) When the Commissioner of the Division or the Deputy Commissioner as the case may
be returns the budget or reserves certain items thereof for reconsideration, in the light of
objections raised, the Committee shall consider the matter and either modify the
estimates so as to remove the objections or, in case of disagreement, refer them through
the [Deputy Commissioner to the Commissioner of the Division]. If the Commissioner of
the Division concurs in the objections he shall make such modifications in the estimates
as may in his judgment be necessary to remove the objections in whole or in part. If he
does not concur in the objections he shall pass the estimate and his order shall be final
and binding on the Committee.]

[(c) Whenever the Deputy Commissioner sanctions the budget under the preceding
clauses, a copy of the same should be forwarded to Government for information and
record.]

[Note. - [The Deputy Commissioner] is required to forward copies of the budget sanctioned by him to Government by the
twentieth day of March, and in case the budget of any Committee is not sanctioned in time, he is required to intimate
Government with the circumstances responsible for the delay.]

II.9. Expenditure in excess of budget provision. - (1) Expenditure in excess of the amount
provided in the sanctioned budget under any head subordinate to a departmental head may be
incurred with the sanction of the committee if the necessary funds can be provided by transfer
from any other head subordinate to the same departmental head.
(2) Save as provided in sub-rule (1), no expenditure under any head in excess of the amount
provided in the sanctioned budget under the head shall be incurred, except with the sanction of
the [Commissioner of the Division or the Deputy Commissioner as the case may be], and such
sanction shall not be given unless the committee has by resolution approved -

(a) the transfer of sufficient funds from the grant under the head 8 - Reserve for
Unforeseen Charges or the grant under some other departmental head; or

(b) the revision of the estimate of the income under the departmental head concerned or
of the surplus income available for allocation to departments :

provided that nothing contained in this sub-rule shall be deemed to authorize the committee to
refuse to make any refund of octroi due under these rules even if the making of such refund will
involve exceeding the budget provision for such refunds in anticipation of sanction.

[(3) When it is found after the close of the financial year that the budget provision under any
departmental head has been exceeded the excess may be regularized with the sanction of
the [Commissioner of the Division or the Deputy Commissioner as the case may be] [who
should, when approached for sanction,] be also apprised of details of the excess disclosed after
the close of the year under sub-heads subordinate to the departmental head.]

[(4) An application for additional funds required during the course of a financial year for a
particular head of accounts shall be sanctioned by the [Commissioner of the Division or the
Deputy Commissioner the case may be] of the division as supplementary or additional grant
under the relevant head.]

Note. - The closing balance shall not be treated as head of accounts for this purpose.

II.10. Budget estimates of municipalities to which the Punjab Municipal (Executive Officer)
Act, 1931, has been extended. - [In those Municipalities to which the Punjab Municipal
(Executive Officer) Act, 1931, has been extended, the following procedure is to be observed :-]

The Executive Officer, in discharge of his responsibility for preparing and submitting to the
Committee the annual estimates of income and expenditure, shall submit his proposals to the
Committee on or before the [20th of December], each year and at the same time shall send a
copy direct to the Deputy Commissioner. He shall inform the Deputy Commissioner of the final
proposals of the Committee, provided that if the Committee has not framed final proposals on
or before the [15th January], he shall at once inform the Deputy Commissioner accordingly, and
at the same time shall communicate to him any modifications which the Finance Sub-Committee
may have proposed and any modification which he may himself have proposed to the
Committee. The Deputy Commissioner [in the case of a municipality of the first class] shall
thereupon forward the budget and other communications received from the Executive Officer
to the [Commissioner of the Division and the [Commissioner of the Division or the Deputy
Commissioner as the case may be] shall have power to sanction as the budget for the ensuing
year the budget as originally submitted by the Executive Officer or the budget as modified in
such a manner as he shall deem fit:]

[Provided if the Committee has passed its budget on or before the [15th of January], the budget
so passed shall be submitted to the Commissioner and the provisions of rule 11.8 shall apply.]

CHAPTER III
 General Methods and Structure of Accounts

III.1. The General Cash book. - (1) All money received or spent by or on behalf of the
committee shall without any reservation be brought to account in the General Cash-book to be
maintained in Form G.2 under the direct supervision of the Secretary, sums received or
disbursed at the committee's office being entered at the time when the payment is received or
made, and receipts and payments made at subordinate offices being entered when intimation
thereof is received at the committee's office.

(2) The General Cash-book (Form G. 2) shall each day be checked item by item, closed, balanced
and signed by the Secretary, or, in his absence, by the Assistant Secretary, if any; or, if there is
no Assistant Secretary, by a member, and at the end of each month it shall be compared and
agreed with the treasury pass-book, every item of receipt and expenditure in which shall be
checked with the entries in the General Cash-book; differences shall be explained and
accounted for in the General-book in the manner indicated below :-

Rs.
Balance as per cash-book ... ...
Add amount of cheques (detailed below) drawn, but not cashed ... ...
Total ---------------
Deduct money received too late for remittance to treasury ... ...
Balance as per pass-book ... ...
Details of uncashed cheques
Date Number Amount

(3) When the [General Cash-book] has been checked at the end of the month as prescribed in
sub-rule (2), it shall be laid before the President, or, in his absence, a Vice-President, for review
and signature.

(4) If, on comparison of the [General Cash-book] with the treasury pass-book, it appears, that
any cheque has remained uncashed for an unduly long period, enquiries shall be made with
regard to such cheque and, if it cannot be traced, payment of it shall be stopped by order of the
drawing officer.

(5) All signatures on the [General Cash-book] shall be dated.

III.1A. A Chest book in Form G. 2-A shall be maintained by each head of department. It shall
contain day to day record of the cash received and disbursed/credited by the cashier. It will be
the duty of the Head of the Department to ensure that all amounts received in his Branch or
noted in the Chest Book are disbursed to the parties concerned or deposited into the Municipal
Fund. The chest book shall be closed and balanced daily and initialled by the Head of
Department concerned in token of his having accepted the accuracy of the amount of cash in
the hands of the cashier. If there is no separate cashier, the Secretary or the Head of
Department acting as Disbursing/Collecting Officer should himself maintain the Chest book for
the cash handled. (Vide Notification dated 1.5.1958. No. 2977-C-ICI-58/3441).

III.2. The Classified Abstract. - For the purposes of classifying the income and expenditure, a
Classified Abstract shall be maintained in Form G. 3 in two volumes, one for income and one for
expenditure, a separate page of which shall be assigned to each head of account under which
income or expenditure has been budgeted for, and the items appertaining to these heads shall
be taken from the General Cash-book (Form G. 2) either as they occur or in the aggregate for
the day and entered in the appropriate columns of the abstract, and at the end of each month
the monthly and progressive totals shall be entered under each heads of the abstract.

III.3. Adjustment of advances, overpayments, refunds is of overcharges, etc. - When it is

necessary to adjust the recovery of a portion of an advance payment which has been incurred or
of an overpayment or the refund of money wrongly paid or received or any other such
transaction, the receipt or payment of the amount involved shall be entered in the General Cash
book (Form G. 2), in red ink, the head of account to be entered in column 4 or column 14, as the
case may be, being the original head of account of expenditure or income as the case may be
preceded by the word "deduct" and, when the amount is carried to the Classified Abstract
(Form G. 3), it shall be entered in red ink under the appropriate head of account in the income
or expenditure volume, as the case may be, and deducted from the daily total.

III.4. Correction of misclassified items. - When it is necessary to correct any misclassification

of any item of income or expenditure, no entry shall be made in the General Cash book (Form G.
2), but the necessary "deduct" and "add" entries shall be made in red ink under the relevant
heads of account in the Classified Abstract (Form G. 3), a note being made in the "Remarks"
column giving the date of the original debit or credit in the General Cash book and the head of
account to or from which the item has been transferred and the file number and page of the file
on which the order sanctioning the correction has been recorded.

III.5. Record of inter-departmental book transfers. - (1) In cases where stocks of articles of
stationery or other articles are bought wholesale for subsequent distribution among different
departments, the expenditure shall be entered in the first instance both in the General Cash
book (Form G. 2), and in the Classified Abstract (From G. 3), under the head 9 Suspense
Accounts A - Stationery and Printing or B - Stocks and Stores as the case may be, and
subsequently, when a portion of the stock is distributed to a department, no entry shall be
made in the General Cash book, but entries shall be made in the red ink in the income and
expenditure volumes of the Classified Abstract under the appropriate detailed head under the
head IX - Suspense Accounts and under the appropriate detailed head of the departmental head
concerned, respectively, a note being made in the "Remarks" column, against the entry in the
income volume, of the head of account which has been debited and of the number and page of
the file on which the departmental requisition for supply has been recorded.

(2) In other cases not covered by the provision of sub-rule (1), when it is necessary to record any
inter-departmental transaction giving credit to one department and raising a debit against
another department though money does not actually change hands, no entry shall be made in
the General Cash book (Form G. 2), but the necessary entries shall be made in red ink under the
relevant heads in the income and expenditure volumes, respectively, of the Classified Abstract
(Form G. 3), a note being made in the "Remarks" column giving the head of account which has
been debited or credited, as the case may be, and the number and page of the file in which the
order sanctioning book- transfer has been recorded.

III.6. The Monthly Account. - At the end of each month a Monthly Account in Form G. 4 shall
be drawn up, and, after signature by the Secretary and the President, shall be laid before the
committee, and if the [Commissioner of the Division in the case of a municipality of the first
class and Deputy Commissioner in the case of a municipality of the second class] so directs, a
copy shall be forwarded to him for information.
III.7. (1) At the end of the year an Annual Account in Form G. 5 shall be prepared, and after
signature by the Secretary and the President, shall be laid before the committee for approval.

(2) The Annual Account shall be supported by a certificate signed by the Treasury Officer
showing the amount at the credit of the committee in the treasury at the close of the year, and
if, there is any difference between the amount shown in the certificate and the amount shown
as the closing balance in the Annual Account, details shall be given, in the "Remarks" column on
the last page of income side of the account, of the uncashed cheques or uncredited items of
income to which the discrepancy is due.

(3) After the Annual Account (Form G. 5) has been approved by the committee and before the
first day of August each year a copy of the account shall be forwarded to the [Commissioner of
the Division in the case of a municipality of the first class and Deputy Commissioner in the case
of municipality of the second class] through the proper channel.
Note. - (1) It should be noted that along with Annual Account (Form G. 5) is to be forwarded a Tax Collection Progress
Statement (Form T.S. 10) for the last quarter of the financial year, and a statement showing the amount and nature of all
investments recorded in the Register of Investments (Form G. 26), as required by rules VII. 14(1) and XVII.4(2), respectively.

(Note - (2) omitted by Punjab Government Notification No. 2581-S-G-37/1072B, dated 15th March, 1937).

III.8. Register of Government Grants to be maintained; and recovery of unspent grants. -

(1) Every committee shall maintain a Register of Government Grants in Form G. 6 in which shall
be entered at the time of receipt details of every non-recurring Government grant received and
of every payment made against each grant, and as soon as may be after the end of the year the
committee shall cause a statement to be compiled in Form G. 6-A and forwarded through the
proper channel to Government.

(2) In every case in which a work or service towards the cost of which a Government grant was
received by the committee has been completed, Government may authorize the Accountant-
General to require the Treasury Officer to transfer from the municipal fund and credit to
Government under the appropriate head the amount, if any, shown in column 10 of the Annual
Statement of Government Grants (Form G. 6-A) in respect of such work or service.

(3) If in any case a work or service towards the cost of which a Government grant was received
by the committee is not commenced within one year of the receipt of such grant by the
committee, Government may authorize the Accountant General to require the Treasury Officer
to transfer from the municipal fund and credit to Government under the appropriate head the
amount of such grant.

[(4) Treasury Officer/Manager or Agent of the Bank with which the committee conducts
business, shall credit to Government on the authority of a requisition issued by the Examiner
Local Fund Accounts, Punjab the balance of Government grants which remain unspent for more
than three complete financial years including the year in which the grant is received.]

[III.9. Register of Contract Work and Supply Orders. - A register of Contract Work and
supply Orders [except those the cost of which does not exceed Rs. 50] shall be maintained in
form G. 33 in the offices of all officers authorised to deal with contracts, work orders and orders
for supply, and to make payments for the same, in order to ensure that no contract, work or
supply for which an order has been given escapes notice or remains unpaid for any length of
time. Whenever any contract, work or supply order, which shall be in Form M. W. 5 in the case
of works and in form G. 34 in the case of supplies other than those required in connection with
works, is given, the necessary particulars relating to the contract work or supply order shall
forthwith be entered in columns (a) to (e) of the register in Form G. 33, and this register shall be
placed before the Head of the Department who shall affix his initials in column (f) thereof
signing at the same time the contract, work or supply order. At the end of the month the Head
of Department shall check the register to ensure :-

(a) that every contract, work or supply order, for which an order has been given, has
been carried out promptly, and

(b) that when any contract, work or supply order has been completed, payment is made
without unnecessary delay.

The register shall be scored through vertically with red pencil down to the oldest unpaid item.

Explanation should be made in the column of remarks with regard to any contract, work or
supply order unduly delayed or any payment not made within fifteen days of the completion of
the contract, work or supply order.

The date of completion shall be the date on which the Completion Certificate in the form M.W.
12 or a similar certificate has been signed by competent authority.]

[III.10. Register of building application. - The committee shall maintain a register of building
applications in form G. 35 in which shall be entered all building applications as soon as they are
received. The record of various fees realized shall also be made in the respective column of the
form if the committee collects any fees of the kind provided therein.]

CHAPTER IV

Receipts

IV.1. Methods by which money may be received and credited to the municipal fund. -
Money may be received and credited to the municipal fund -

(a) by book-transfer made by the Treasury Officer on receipt of intimation from the
Accountant-General;

(b) by direct payment into the treasury;

(c) by payment to an official of a department of the committee and subsequent

remittance by such official or the head of his department direct to the treasury; or

(d) by payment to an official of the committee and subsequent remittance through the
office of the committee to the treasury.

IV.2. Credit by book-transfer intimated by Accountant General. - When money is received

by book transfer made by the Treasury Officer on receipt of intimation from the Accountant-
General, the receipt shall be entered in the General Cash book (Form G. 2) in the ordinary way,
the number and date of the Accountant General's letter intimating the transfer being quoted in
column 5 of the form while column 6 shall remain blank and in column 9 the words "by book-
transfer" shall be entered.
IV.3. Receipt of money by direct payment into the treasury. - (1) When money is to be paid
direct into the treasury for credit to the municipal fund, the person making the payment shall be
provided with a challan in Form G. 7 of which one part shall be retained by the Treasury Officer,
the second part shall be handed as his receipt to the person making the payment and the third
part shall be returned to the office of the committee where the receipt of money shall
thereupon be entered in the General Cash book (Form G. 2), the number of the challan
preceded by the capital letter C being entered in columns 6 and 9 of the form and the challan
filed as a voucher for the entry in the General Cash book.

(2) The committee shall from time to time designate by resolution the officials who may remit
money received by them for credit to the municipal fund direct to the treasury in the manner
provided in sub-rule (1) and such remittances shall be made [at such intervals as the Committee
may made deem fit.]

IV.4. Receipts to be granted for all moneys received. - (1) Except as otherwise provided in
these rules, whenever money is received for credit to the municipal fund by any municipal
official, a receipt in Form G. 8 shall be given to the person making the payment, the words "a
cheque for" and the words "on realization" being struck out if the payment is not made by
cheque.

(2) The committee shall from time to time designate by resolution the persons by whom receipt
in Form G. 8 may be signed on behalf of the committee.

(3) Receipt shall be written with indelible pencil in duplicate by means of carbon paper, the
carbon copy being retained by the official issuing the receipt and the original detached and
handed to the person making the payment.
[Note. - No receipt shall be necessary for the fees, if any, realized for out-door patient and indoor patient tickets issued to
the persons attending the medical or veterinary dispensaries. An account of the outdoor patient indoor and patients [and
indoor patients tickets] should be kept in the expense book of the hospital in which the issues will be recorded daily.]

[IV.4A. Receipt of money by the National Cash Register System. - (1) (a) Where the National
Cash Register System is in force money presented for credit to the municipal fund shall be
accompanied by the original bill. When any money is thus received by any municipal official, he
shall satisfy himself that the payment is correct, put the cash or cheque into the cash box or
drawer initial the bottom left hand corner of the bill form, add a receipt stamp, if necessary, in
the appropriate space and pass the bill to the National Cash Register Operator. The Operator
shall insert the bill in the National Cash Register where the receipt portion is typed. The receipt
portion shall then be signed by the Operator and given to the person making payment. The
words 'a cheque for' shall be struck out if payment is not made by cheque. The locked box
containing the remaining portion of the bill automatically cut off by the Register shall be opened
from time to time during the day for removing the bills so that the requisite entries may be
made in the account register.

(b) At the end of each day the secret compartment of the National Cash Register in which
the amounts received during the day are automatically entered and totalled on a slip
shall be opened and the actual cash and cheques received during the day shall be
checked with the totals on the slip. Any deficiency shall be made good by the official
receiving the money and the slip shall then be intialled and posted in the general cash-
book.
(2) The committee shall from time to time designate by resolution persons -

(a) who may receive the money and sign the receipts on behalf of the committee;

(b) who shall retain the key of the box containing the portion of the bill automatically cut
off by the Register :

(c) Who shall retain the key of the secret compartment holding the slip on which the
amounts received during the day are automatically entered and totalled and shall also
check the accounts at the end of the day and initial the slip.]

IV.5. Receipt of money by an official elsewhere than at the head office and remittance to
head office. - Except as otherwise provided in these rules, when money is received for credit to
the municipal fund by a municipal official who has not been authorised to make remittances
direct to the treasury under the provisions of sub-rule (2), of rule IV.3 elsewhere than at the
office of the committee, he shall pay in such money at the office of the committee. [at such
intervals as the Committee may deem fit] with a challan in Form G. 9, the foil of which shall be
returned to him and pasted by him on the back of the counterfoil of the last receipt issued by
him in Form G. 8 in respect of any portion of the sum remitted with the challan in Form G. 9.

IV.6. Receipt of money at head office. - Except as otherwise provided in these rules, when
money is paid in at the office of the committee, it shall be accepted by the Secretary or other
official appointed to receive municipal dues, and, when the receipt in Form G. 8 has been made
out as required by rule IV.4, the money with the receipt and counterfoil shall be taken to the
municipal treasurer, if any, or other officer authorised to receive money, [enter the amount in
the Chest book in From G-8A maintained under Rule III. 1-A] and sign the counterfoil in token of
having done so; [and get the receipt signed by the officer authorised under the provisions of
sub-rule (2) of rule IV-4 the foil of the receipt returned to the person making the payment. The
counterfoil of the receipts issued during the day shall then be taken to the officer incharge of
the General Cash book who shall enter separately the total amount received under each head
specifying the nature of income in column 5; the number of receipt preceded by the letter R
being entered in column 6 of the Cash book.]

Provided that, if the money is paid in under the provisions of rule IV-5, the challan in Form G. 9
shall be treated as a receipt in Form G. 8 for the purposes of this rule, the number of the challan
preceded by a small letter 'c' being entered in column 6 of the General Cash-book when the
receipt is entered therein.

[IV.6A. Receipt of money at head office where the National Cash Register is in force. -
Except as otherwise provided in these rules, when money which must be accompanied by the
original bill, is paid at the office of the committee where the National Cash Register System is in
force, it shall be accepted by the Secretary or other officer appointed to receive money and the
provisions of rule IV. 4-A shall apply.]

IV.7. Endorsement of cheques received. - When payment is received by means of a cheque

drawn on the treasury, the cheque shall be endorsed by official of the committee in whose
favour it is drawn with the words "Received payment by transfer credit to the municipal funds."

IV.8. Remittance to treasury. - At the end of each day, or if the treasury is closed, early on the
first subsequent day on which it is open, the money received during the day at the office of the
committee shall be remitted to the treasury with a challan in Form G. 9, particulars of which
shall be entered in columns 9 to 10 of the General Cash book (Form G-2), and, when the
duplicate foil of the challan is received back from the treasury, the entries in the General Cash
book shall be checked with such foil and initialled by the Secretary and such foil shall be used as
a voucher for the remittance and shall be filed in a guard file.

IV.9. Vouchers to be filed in order of subsequence of entries in General Cash book. - The
vouchers referred to in rules IV-3, IV-6 and IV-8 shall be filed together in consecutive order in
the office of the committee according to the sequence of the entries to which they relate in the
General Cash book (Form G. 2).

CHAPTER V

Octroi

V.1. Definitions. - In this chapter, unless there is anything repungnant in the subject or the
context -

(a) "barrier" means a place appointed under the provision of rule V-3;

(b) "branch octroi office" means a branch of the head octroi office under the control of
an Assistant Octroi Superintendent; [or Octroi Inspector];

[(c) carbon process means writing a document in duplicate by an indelible pencil by

means of a double faced carbon paper];

[(d) "export" means export from the octroi limits];

(e) "import" means import within the octroi limits;

(f) "central barrier" means a barrier situated at the head octroi office or at a branch
octroi office;

[(g) "octroi" means a cess on the entry into a municipality of goods for consumption, use
or sale therein;]

(h) "railway barrier" means a barrier for the interception of traffic from railway premises,
so described by public notice exhibited thereat;

(i) "refund" means a payment made in respect of goods exported of an amount equal to
the octroi which would be payable if the goods were being imported.

[V.1A. Octroi with or without refunds. - Octroi can be imposed either with or without refunds.
When it is imposed as octroi (with refunds) refunds shall be payable in the manner laid down in
the rules herein below. When it is imposed as octroi (without refunds) no refund shall be
payable.]

V.2. Establishment of a branch octroi office. - In a municipality, where such a course is

desirable in the interest of trade by reason of the distance between the head octroi office and
outpost or railway barriers, the committee may, with the previous sanction of the Deputy
Commissioner, granted after consultation with the Examiner Local Fund Accounts, Punjab,
establish [one or more branch octroi offices.]
V.3. Establishment of barriers. - The committee shall appoint a place or places near, or, with
the consent of the railway administration, on the railway premises and places at any other
points on, or in the immediate vicinity of, the octroi limits that may from time to time be
determined as most suitable for intercepting import traffic for the assessment and collection of
octroi, provided that nothing in this rule shall be deemed to prevent the assessment and
collection of octroi at any other place in accordance with the provisions of these rules.

[Note. - All the barriers shall remain open for 24 hours of the day except a barrier established to control the import of the
goods from Railway goods shed which shall remain open for such hours as the Committee may determine keeping in view
the local conditions.]

V.4. The Octroi Superintendent. - (1) The committee shall appoint an officer to be Octroi
Superintendent, who, in addition to discharging any other duties imposed upon him by these
rules, shall be responsible generally for the assessment and collection of octroi in accordance
with these rules and for the proper discharge of their duties by other inspecting, collecting or
assessing officers, including the Assistant Octroi Superintendent, if any, appointed under the
provisions of [rule V-5] or under sub-rule (2), of this rule.

[(2) In municipalities where octroi (without refunds) is in force the Committee may appoint one
or more Assistant Octroi Superintendents [or Octroi Inspectors] and may with the previous
sanction in writing of the [Deputy Commissioner] determine by resolution which functions and
duties imposed by these rules upon the Octroi Superintendent may be discharged by such
Assistant Octroi Superintendents [Octroi Inspectors.]

V.5. The Assistant Octroi Superintendent. - If a branch octroi office has been established
under the provisions of rule V-2, the committee shall appoint an Assistant Octroi
Superintendent [or Octroi Inspector] to be incharge thereof, and such Assistant Octroi
Superintendent [Octroi Inspector] subject to the provisions of these rules, shall in respect of the
branch octroi office and of the barriers subordinate to it, discharge all the functions and perform
all the duties imposed upon the Octroi Superintendent in respect of the head octroi office and
the working of barriers generally.

V.6. Octroi Inspector. - The committee shall appoint Octroi Inspectors who, in addition to
discharging any other duties imposed upon them by these rules, shall supervise the working of
the barriers, and shall see that the staffs of the barriers comply with the rules laid down for their
observance.

V.7. The staff of barriers. - (1) The committee shall appoint to each barrier a staff of [officers
incharge of the barriers] and peons for the assessment and collection of octroi, and it shall be
the duty of such staff to see that all goods liable to octroi are stopped at the barrier and to deal
with them according to these rules.

(2) No [officer incharge of the barrier] or peon appointed under the provisions of sub-rule (1)
shall ordinarily be allowed to remain at the same barrier for a period of more than one month at
a time.

[Provided that the [Examiner, Local Fund Accounts, Haryana], may extend the period of one
month, to period not exceeding three months.]

[Provided further that the officer incharge of the central barrier may remain at the same barrier
for not more than three months at a time.]
[V.8. Inspection of barriers by members and Secretary. - (1) It shall be the duty of the
President, the Vice-President, the secretary, the octroi superintendent of the committee and, if
there is an executive officer, of that officer also to visit the barriers and to inspect the registers
and accounts there maintained in accordance with these rules.

(2) An inspection book shall be maintained at each barrier in Form O.1 and the officials
mentioned in sub-rules (1) and (4) of this rule also the inspectors of the department inspecting
the barriers shall note therein the results of their inspection, making their notes as full and
detailed as possible.

(3) If in any such note any complaint is made as to the working of the barrier, a copy of the note
shall at once be sent by the officer in-charge of the barrier through the octroi superintendent to
the secretary with a view to suitable action being taken.

(4) The barriers may also be inspected by the Local Audit staff at any time. The Local Audit staff
for this purpose may borrow from the octroi superintendent the key which opens the cash
boxes after giving a written receipt to the octroi superintendent. This key shall be returned as
soon as possible after the inspection is over.]

[V.9. Posting of octroi schedule, prices current and rules at barriers. - (1) A copy, in English
and Vernacular, of the Octroi schedule, as sanctioned by Government and duly authenticated by
the signatures of the Octroi Superintendent and of the Secretary a copy of the Committee's
resolution duly attested by the Octroi Superintendent prescribing the method of assessment of
articles ad valorem [ - ] and a copy in English and Vernacular, of the rules contained in this
chapter shall be posted in a conspicuous place at each barrier.

(2) The functions of the Octroi Superintendent under the provisions of sub-rule (1) shall not be
discharged by an Assistant Octroi Superintendent.]

V.10. Provision of scales and weights or weighing machines at barriers. - The committee
shall provide at each barrier a suitable set of scales and weights, or a weighing machine which
shall be kept in proper order by officer incharge of the barrier and shall be tested at intervals of
not more than three months by the Octroi Superintendent or by any other officer or member of
the committee as the committee may direct, and such Superintendent, officer or member shall
record the result of each test in the Inspection Book (Form O.1).

V.11. Rule V.11 deleted by Punjab Government notification No. 6829-LB-II 4564, dated the 10th
August, 1951.

[V.12. Method of assessment of articles ad valorem and limits of powers of officers incharge
of octroi barrier. - (1) [ - ]

(2) The importer shall present to the officer-in-charge of the barrier an invoice or a cash memo
or a declaration in the form prescribed by the Committee showing the price of articles liable to
octroi to be assessed ad valorem.]

V.13. Declaration to be made of destination of goods at time of import. - (1) When goods
liable to octroi are brought to a barrier for import, the officer-in-charge of the barrier shall call
upon the person-in-charge of such goods to declare, and such person shall declare, whether
such goods are intended -
 (a) for immediate export; or

(b) for consumption, use or sale within the octroi limits; or

(c) in municipalities in which a trade warehouse is maintained for temporary detention

within the octroi limits and eventual export; or

(d) where there is no trade warehouse, for temporary retention within the octroi limits
and re-export under the Re-export Pass System prescribed in Rule V. 32A.

(2) If any person refuses to make a declaration as required by the provisions of sub-rule (I), he
shall be deemed to have been guilty of a breach of that sub-rule, and it shall be deemed that the
goods in respect of which the declaration should have been made have been declared to the
intended for consumption, use of sale within the octroi limits.

V.14. Goods for immediate export to be dealt with under the Transit Pass System. - (1)
When goods liable to octroi are declared to be intended for immediate export under the
provisions of sub-rule (1) of rule V.13, they shall be dealt with under either the Transit Pass
System. [ - ]

[ - ].

V.15. The Transit Pass System. - (1) In municipalities in which the Transit Pass System is in
force, a person importing goods intended for immediate export after declaring them as such at
the barrier of import, whether the railway barrier or any other barrier, shall specify the barrier
through which they are to be exported, and the officer-in-charge of the barrier shall fill up a
transit pass in Form O-2 and shall [on payment of such fee, if any, not exceeding [two rupee] as
may be prescribed by the Committee send the goods under the escort of a peon to the barrier
of export entered in column 9 of the pass, handing the foil of the pass [together with the
acknowledgement coupon] to the peon and the coupon to the person-in-charge of the goods
provided that, [if no peon can be sent] the foil of the pass [together with the acknowledgement
coupon] also shall be handed over to such person after an acknowledgement of the receipt of
the pass has been taken from such person on the reverse of the counter-foil; [provided further
that no such fee shall be levied if the amount of the tax calculable on such articles in respect of
which the pass is granted is less than [two rupee.]

[Provided further that transit pass for a loaded truck shall not be issued unless the driver
thereof produces his driving licence before the officer incharge of the barrier for the purpose of
recording necessary particulars in the transit pass and if the driver fails to produce driving
licence, goods in the truck will not be allowed to pass the barrier without payment of octroi.]

[Provided further that motor vehicles loaded with material, subject to octroi, may not obtain
transit pass at the entry point of the municipal limit, if they do not stop within the municipal
limits. This exemption of not obtaining the transit pass shall be restricted only to National/State
Highways. In case of default, the person importing goods shall be punishable under Section 91
of the Act.]

(2) when such goods are brought to a barrier for export, the peon or person- in-charge of them
shall present the [pass] [with the acknowledgement coupon attached issued] to him under sub-
rule (1) of this rule, and the officer-in- charge of the barrier shall note in column 12 of the pass
the time at which it was presented, and shall check the goods with the particulars given in
columns 5, 6 and 7 of the pass and then -

(a) if the goods tally with the particulars entered in the pass, and the time of export
entered in column 10 has not passed, shall allow the goods to pass out, and shall return
the pass by the peon to the barrier of import, where it shall be pasted on the back of the
counterfoil; or if there is no peon, shall retain the pass for submission to the head
office; [and in either case shall hand over the acknowledgement coupon to the exporter
duly signed]; or

(b) if the description or weight of the goods does not tally with the particulars entered to
the pass, and there is any defect in the weight of any such goods as are ordinarily liable
to octroi, or any of the goods are of description different from the description of the
goods entered in the pass and are ordinarily liable to octroi, shall make a note of the
discrepancy in column 14 of the pass and shall then proceed as if goods to the extent of
such defect in weight or of such description were being imported for [consumption, use
or sale within octroi limits]; or

(c) if the time entered in column 10 has passed before the pass is presented, shall
proceed as if the consignment of goods was being imported for [consumption, use or sale
within octroi limits].

(3) The committee shall fix in respect of every two barriers the period within which goods
imported either of them for immediate export must be exported through the other, and a
schedule of the periods so fixed shall be exhibited at every barrier, and the officer-in-charge of
the barrier at which such goods are imported shall calculate and enter the time accordingly in
column 10 of the Transit Pass in Form O.

[Provided, however, that in case of motor vehicle traffic, the period allowed shall not exceed
one hour and for all other traffic two hours except in special circumstances with the previous
sanction of Government.]

[(4) When such goods could not be exported within the period fixed by the Committee under
sub-rule (3) and the tax thereon has been duly paid the person-in-charge of the goods may
apply to the Secretary or, in Municipalities where there is an Executive Officer, to that officer for
the refund of the tax paid. The Secretary or the Executive Officer, as the case may be, shall, if
satisfied that the goods have been actually re-exported, and that the delay was due to
circumstances over which the applicant had no control, grant a refund of the amount paid.]

(5) Officer-in-charge of barriers shall each day send to the head office the books of counter- foils
of Transit Passes, and the Octroi Superintendent or Assistant Octroi Superintendent shall
examine each counterfoil and shall place his dated initials thereon in token of his having done
so; and if in any case the pass is not found pasted on the counterfoil by the evening of the
second day following its issue, a special investigation shall at once be made by the Octroi
Superintendent, and particulars of every such pass shall be entered in a register to be
maintained in Form O-23.

[(6) The refunds allowed under sub-rule (4) shall he met in the ordinary manner by making
payment by means of a contingent bill.]
Note. - If the exporter furnishers proof to the satisfaction of the committee that the goods were actually exported and the
committee decides to forego recovery, this will be quite in order. (Examiner's memo No. LFE-5503- 651/1655 dated
5.11.1951 to the address of the President MC Dera Baba Nanak).

[V.15A. The Transit Refund System. - The Committee in order to exercise check over the
verification of transit passes made by the [officer-in-charge barriers] at the export barriers, shall
maintain a register of transit passes in form O-2A which shall be kept at all barriers and entries
shall be made therein by the officer-in-charge at the time of allowing goods to be exported on a
transit pass.]

V.16. [ - ]

[V.17. Agency and method of assessment. - (1) The octroi payable in respect of goods imported
otherwise than by rail for consumption, use or sale within octroi limits shall be assessed -

(a) by the officer-in-charge of the barrier of import, if :-

(i) the octroi is leviable by weight or tale, or

(ii) the octroi is leviable ad valorem according to the provisions of rule V-12.

(b) by the Octroi Superintendent.]

[(2) When octroi liable ad valorem is to be assessed by an officer-in-charge of a barrier, he shall

calculate their value on the information at his disposal with due regard to the invoice produced
by the importer or the value declared by the importer.]

(3) When octroi leviable ad valorem is to be assessed by the Octroi Superintendent, he shall, if
no invoice is presented with the goods, calculate the value of the goods on the information at
his disposal with due regard to the value declared by the importer, and, if an invoice is
presented calculate the value on the value entered in the invoice [plus] the cost of freight unless
he has reason to suspect that the invoice is not genuine in which case he shall proceed as if no
invoice had been presented.

V.18. Procedure at outpost barriers. - (1) When goods imported otherwise than by rail and
intended for consumption, use or sale within octroi limits are brought to a barrier, the officer-in-
charge of the barrier shall, if he is empowered to do so, assess the octroi payable in respect
thereof and unless the person-in-charge of the goods disputes such assessment, shall fill up a
receipt in duplicate by carbon process in Form O-4 together with the coupon appended thereto,
and shall demand the amount of octroi payable from the person-in-charge of the goods, and on
receipt of the amount shall forthwith drop it into the cash box and shall hand the receipt, with
coupon attached, to such person :

[ - ] Proviso omitted vide Notification dated 2nd March, 1960, No. 474-CI-11 CI)60/7119.

[(2) If a person incharge of the goods disputes an assessment made by an officer-incharge of a

barrier under the provisions of sub-rule (1) the officer-in- charge of the barrier shall enter the
details of the goods in a pass in Form O.5 of which he shall hand over the foil with the coupon
attached duly filled up, to such person who shall forthwith take it with the goods to the Central
Barrier.]
(3) A municipal committee may collect the octroi by means of monthly bills, instead of at the
barriers, in case of articles imported into the municipality by Government departments.

[The bills should be issued by carbon process in form O.26.]

[(4) In the case of articles which are imported into a municipality by Government Department in
respect of which the Committee collects octroi by means of monthly bills or are specially
exempted from the payments of octroi the officer-in-charge of the barrier shall enter the details
of the goods in a pass form O. 4-A, which he shall prepare in triplicate by means of carbon, one
foil of this form shall be handed over to the importer, the second forwarded to the Head office
for preparation of bills or comparison with counter-foil retained at the barrier and the third
retained at the barrier.]

V.19. Face-value tickets for headloads. - Notwithstanding anything contained in rule V.18, the
committee may, with the approval of the [Examiner, Local Fund Accounts Punjab], authorize the
issue of face-value tickets in Form O.6, instead of receipts in Form O.4, in respect of octroi paid
on head-loads of bhusa, fruit or vegetable; such tickets shall be printed on paper of different
colours, and shall be of the values of one pie, one and a half pies, two pies, three pies, six pies
and one anna.

V.20. Deleted Vide Notification dated 2nd March, 1960.

[V.21. When goods are brought to the [Central barrier under the provisions of sub-rule (2) of
rule V.18, the Octroi Superintendent] [or Assistant Octroi Superintendent shall first see that the
goods agree with the details entered in the pass in Form O.5 issued in respect of them at the
import barrier, and shall then assess the amount of octroi payable], and note it on the back of
the foil in Form O.5. He shall then hand it over to the person-in-charge of the goods who shall
take it to the officer-in-charge of the central barrier, who on the receipt of the amount payable
shall make out a receipt in Form O.4 by carbon process, fill in the coupon attached, note the
number, and date of the receipt in Form O.4 on the back of the pass in From O.5, sign and hand
over, the original receipt Form O.4, with coupon attached, to the importer, dropping the money
receipt and the pass in Form O.5 into his cash box.]

[V.22. Imports of perishable goods by rail regulated by rules governing imports of goods
otherwise than by rail. - The assessment and collection of octroi payable in respect of imports
by rail of fresh fruit, pan, fish, vegetables and similar other articles of perishable nature and of
articles on which the octroi payable does not exceed two rupees shall be regulated by rules V.
17 to V. 21.]

V.23. Railway Receipt and Invoice Register to be maintained. - (1) Subject to the provisions
of rule V. 22, when any person receives the railway receipt of goods consigned by rail, and
intended for [consumption], use or sale within octroi limits, he shall, before taking delivery of
such goods, take or send the railway receipt with the invoice; or in the absence of an invoice
with a written declaration of the details of the consignment, to the head octroi officer [in the
case of octroi (with refunds) and to the railway barrier in the case of octroi (without refunds)
where] if the goods are found to be liable to octroi the receipt and the invoice or declaration
shall be abstracted into a Railway Receipt and Invoice Register to be kept up in From O. 7, the
amount of the freight being added to the value of the consignment in column 11.
(2) The Octroi Superintendent shall check the entries in the Railway Receipt and Invoice Register
with twenty-five per cent of the receipts issued under rule V. 24, and shall satisfy himself that
the tax has been correctly assessed, and shall initial and date all entries and receipts checked.

V.24. Assessment and collection of octroi on imports by rail. - [The registration of the
consignment under Rule V.23 having been completed, the officer-in-charge of the railway
barrier shall determine the octroi leviable and the amount payable shall be demanded from the
person presenting the Railways receipt, to whom, on payment of the amount, a receipt to be
prepared in duplicate by carbon process shall be granted in Form O.8, of which the coupon and
second foil shall be left blank, and the carbon copy retained, the railway receipt and invoice
shall then be stamped with a Municipal Stamp and returned to such person and the declaration,
if any, shall be stamped and filed.]

V.25. Procedure on removal of goods from railway premises. - Subject to the provisions of
rule V. 22, all goods removed from the railway premises, and intended for [consumption, use or
sale in octroi limits, shall if liable to octroi, be brought to the railway barrier, where the person
in charge of the goods shall present the receipt, if any, obtained under rule V.24,] and
the [officer-in-charge of the barrier], after satisfying himself that the goods agree with the
details entered in the receipt, shall fill up the [second foil], of the receipt, tear it off and retain
hand back the [first foil], with the coupon attached [duly filled up to the importer].

Provided that, if only a portion or the consignment covered by the receipt arrives at the railway
barrier, the [officer-in-charge of the barrier] shall tear off the [first foil] and note the quantity
imported, as well as the time and the date, on the reverse of the [first and second foils],
repeating the operation as each subsequent instalment of the consignment is brought to the
barrier, and in this case the [second foil shall not be sent to the head octroi office until the
whole consignment has been imported.]

V.26. Rail-borne imports not covered by receipt in Form O.8. - Subject to the provisions of
rule V.22, if goods liable to octroi, and intended for [consumption, use or sale within octroi
limits, are brought to the railway barrier for import, and are not covered by a receipt in form O.
8 or do not tally with the description of the goods entered in the receipt purporting to cover
them, they shall be dealt with in accordance with the procedure prescribed in sub-rule (2) of
rule V. 18 and rule V. 21]; provided that, before goods, [in the case of octroi (with refunds) the
Octroi Superintendent and in the case of octroi (without refunds) the officer-in-charge of the
railway barrier shall cause particulars of the goods], together with the name of the importer, to
be entered in a Register of Unregistered Rail borne Imports to be maintained in Form O.9.

V.27. Repayment of octroi on rail-borne goods in excess, of amount due on goods actually
imported. - (1) If, for any reason such as short delivery of goods by the railway administration or
diversion of goods to some other destination before import, the amount of goods actually
imported is less than the amount in respect of which octroi has been paid under the provisions
of rule V. 24, the officer-in-charge of the railway barrier shall note in red ink on the [first and
second foils] and coupon of the receipt in Form O.8 the actual amount of goods imported, and
the importer may, within seven days of the date of actual import or of the date of the import of
the instalment of a consignment, present at the head octroi office a claim for a drawback of the
amount of octroi paid in excess of the amount payable in respect of the goods actually
imported; and, if the Octroi Superintendent is satisfied that such claim is correct, he shall pass
the claim for payment out of his imprest by the officer-in-charge of the central barrier.
[Provided that in cases where goods are not actually received for one reason or the other, claim
for refund of octroi already paid may be made within seven days from the date on which it is
confirmed by the Railway authorities that the goods have not been received.]

(2) The amount of goods in respect of which a claim is passed under sub-rule (1) and the amount
of octroi repaid shall be entered in the head office jinswer [in red ink under the total of the day
from which the amount shall be deducted;] and the payment shall be dealt with in the accounts
in accordance with the provisions of rule III.3.

(3) Claims for [drawbacks on account of excess payments of octroi owing to miscalculations or
any other cause shall be dealt with so far as may be in accordance with the provisions of sub-
rule (1) and (2)].

V.27A. Deleted by Punjab Government Notification No. 6829-C-51/11-4564 dated 10.8.1951.

V.28. The trade warehouse. - (1) A committee may maintain a trade warehouse for the
convenience of wholesale traders in which there shall be a general store-room, separate rooms
which may be rented by owners of goods deposited in the where house and accommodation for
vehicles and animals.

(2) The committee may charge rent for the use of a separate room for the whole period of its
occupation and for the use of a portion of the general store-room for any period after the first
seventy-two hours during which such portion is occupied, and a table of the rents fixed by the
committee for accommodation shall be posted up at the entrance to the warehouse and
leviable shall be recovered by the officer-in-charge of the warehouse barrier when a trader
finally removes his goods from the warehouse and at least once a month during his stay, a
receipt being issued in From G. 8, and the counterfoils of receipts issued and the amount of rent
collected shall be remitted daily to the head octroi office, together with other collections.

(3) The committee shall establish at the gate of the warehouse a barrier the procedure at which
shall be governed by the rules governing the procedure at outpost barriers.

V.29. Admission of goods to, and removal from warehouse. - In a municipality in which a
trade warehouse is maintained, if goods brought to a barrier for import are declared to be
intended for temporary detention within octroi limits and eventual export, they shall be treated
as if they were goods intended for immediate export under the provisions of rule V.15 or rule
V.16, as the case may be, save that for a barrier of export shall be substituted the warehouse
barrier; and, when goods are removed from the warehouse, the warehouse barrier shall be
considered a barrier of import and the goods shall be treated as goods intended
for [consumption], use or sale within octroi limits or as goods intended for immediate export
according to the declaration made at the warehouse barrier at the time of their removal.

[Provided that in cases where goods are not actually received for one reason or the other, claim
for refund of octroi already paid may be made within seven days from the date on which it is
confirmed by the railway authorities that the goods have not been received.]

V.30. Daily trading from a trade warehouse. - (1) Notwithstanding anything contained in rule
V.29, the committee may allow a trader to use the warehouse as a convenience for conducting
daily business in the town, permitting him from day to day to remove portions of the goods
from the warehouse and to bring back such goods as may not be disposed of by a fixed hour in
the evening.
(2) For every trader permitted to use the warehouse under the provisions of sub-rule (1) an
account shall be kept in a Warehouse Ledger to be maintained in Form O.10, in which shall be
entered all imports, removals and re-imports of goods as they occur, and each evening a
balance shall be struck showing the goods remaining in the warehouse; and the trader shall be
liable for octroi on the goods thus shown to have been disposed of during the day.

(3) Leader accounts, including warehouse rent, [entered in column 7 of the ledger shall be
settled on the last day of each month], when the [officer-in-charge of the barrier] shall satisfy
himself that the balance of goods shown in the accounts against each trader's name
corresponds with the goods in the warehouse; or, if a trader removes his goods before the end
of a month, accounts shall be settled when the trader finally removes his goods from the
warehouse.

(4) The Octroi Superintendent shall from time to time verify the daily balances of goods shown
in the ledger.

V.31. Extension of trade warehouse system to large mills, mandis, etc. - (1) In the case of
large mills, mandis or other trading institutions to which the committee consider that the
concession may safely be granted, a warehouse barrier may be set up on the premises if such a
barrier can control all entrances thereinto and exits therefrom, and in such cases the accounts
of the barrier shall be kept strictly in the same form as those of an ordinary warehouse barrier,
and the owner of the premises shall provide proper accommodation, and shall pay to the
committee an annual sum equivalent to the whole cost of maintaining the barrier and its staff.

(2) The committee shall report on the first working day of January each year to the [Deputy
Commissioner] or the Chief Administrator in the case of Faridabad Complex Administration,
Faridabad as the case may be for approval the setting up of barriers under the provisions of sub-
rule (1).

V.32. Warehouse to be used when importer is unable or unwilling to pay octroi at time of
import. - In a municipality in which a trade warehouse is maintained, if any person importing
goods liable to octroi is unable or unwilling to pay the octroi due at the import barrier, he shall
take the goods under supervision to the warehouse, where they shall be treated as goods
brought to the warehouse under the provisions of rule V.29.

V.32A. The Re-export Pass-System. - (1) In a municipality in which no trade warehouse is

maintained and in which octroi (without refunds) is in force a person importing goods intended
for temporary retention within octroi limits and eventual re-export may avail himself of the Re-
export Pass System.

(2) No person shall be permitted to make use of the Re-export Pass System unless he has made
a security deposit of [Rs. 1,000/-] in cash or in the form of a Post Office Saving Bank account, as
security for due compliance with the provisions of these rules. This security shall be liable to
confiscation in the event of any infringement of these rules.

[Provided that the State Government may waive the condition for the deposit of security in any
case or class of cases.]

(3) The cash tendered under the foregoing sub-rule or the pass book presented in proof of the
deposit in the Post Office Savings Bank shall be acknowledged in Form G. 8 or by means of a
letter issued over the signature of the Octroi Superintendent, who shall maintain a list of all
such persons who have thus acquired the title to avail themselves of the Re-export Pass System.
The list shall be kept corrected up to date and a copy thereof duly attested by the Octroi
Superintendent supplied to and posted at each barrier.

(4) When a person wishes to import any goods at an outpost barrier on a Re-export Pass, he
shall apply for it to the official incharge of the barrier and make a true declaration according to
Rule V. 13 that the goods to be imported are not intended for consumption, use or sale, within
the limits of the municipality but for temporary retention and re-export under Re-export Pass
System. The official incharge after satisfying himself that the applicant's name is borne on his list
and after referring to the receipt or letter, produced by the applicant in proof of his having
made the necessary deposit, shall admit the goods, and after preparing a pass in duplicate in
Form O. 24 by the carbon process shall hand over the original to the importer and forward the
duplicate to the Head Octroi Office.

(5) The passes to be issues in Form O. 24 shall be bound in book form, each book containing a
uniform number of leaves and each leaf bearing printed book number and serial number. A
stock account of the pass books shall be maintained at the Head Octroi Office in Form G. 29 and
no new book shall be issued unless the previous one has been completely used and returned.

(6) The pass issued under sub-rule (4) shall be valid for a period of one month, and may be
renewed from time to time at the discretion of the committee, on receipt of an application from
the person concerned at least 4 days before the expiry of the previous term, provided that the
total period of the validity of such a pass shall not exceed one year.

(7) When the person concerned desires to re-export the goods in question, or a portion of them,
he shall send an intimation to the Head Octroi Officer stating the date and time at which and the
barrier through which he proposes to re-export them. He shall then fill up the 2nd foil of the
pass in his possession stating the number, weight and description of the goods to be re-
exported and submit the pass to the Head Octroi Office. The officer-in-charge of the Head Octroi
Office shall then sign and return the pass and send intimation to the barrier in question of the
date and time stated. The officer-in-charge of the barrier shall receive from the person
concerned the pass in Form O.24, compare the details therein with the goods exported and
record the result of his verification in the 3rd foil. He shall then send the pass to the Head Octroi
Office, where the details of the 2nd and 3rd foils shall be copied into the corresponding foils of
the duplicate pass kept at the Head Octroi Office and attested by the officer-in-charge. The
original pass shall then be returned to the person concerned to enable him to re-export the rest
of the consignment.

[Explanation. - The re-export pass system will also be applicable in cases where petrol or other
motor spirit is imported and re-exported after it is mixed with power alcohol under the
provisions of the Indian Powers Alcohol Act, 1946; provided that the person concerned shall
have to pay octroi on difference of the quantity of petrol imported and the quantity of petrol
exported after mixing with power alcohol.]

(8) For every person permitted to take advantage of the Re-export Pass System, a ledger
account shall be opened in a register to be maintained in form O. 25 in which all imports and re-
exports shall be entered as soon as intimation thereof is received at the Head Octroi Office
under sub-rules (4) and (7) above. The entries of re-exports, in case the goods are removed from
the octroi limits in more than one instalment, shall be so recorded as to appear against the
imports made on the same pass. For this purpose, sufficient space shall be left under each pass
to provide for the entry of all re-exports made on it subsequent to the first.

[(9) On the expiry of the period of one month from the date of the issue of the pass or of the
subsequent extended period a balance shall be struck in the register to ascertain the quantity of
the un-exported goods, if any, lying with the pass-holder in respect of that particular pass.] [The
duty on such goods shall then be calculated so that action may be taken to recover the amount
due and to invoke the penal provisions of the rules in case they have been infringed.]

(10) On the application of a depositor for the refund of his security, or on the coming to light of
circumstances disclosing any abuse of the pass, the account shall be closed, the total re-exports
shall be set off against the total imports on all the passes issued from time to time and the
balance of unexported goods with the pass-holder, if any, worked out in the case of a depositor
who has applied for a refund, if no amount is found due from him and the rules have not been
infringed, the deposit shall be refunded to him. In all other cases, action shall be taken as laid
down in the last sentence of the preceding sub-rule.

[V.32B. Record of security deposits. - Security deposit made under sub-rule (2) of V.32A shall
be entered in the Register of Deposit to be maintained in the form G-25 in the manner laid
down in rule XVII.3.]

V.33. Power to demand passes and inspect goods. - (1) The Octroi Superintendent and any
Octroi Inspector meeting a person with goods which he deems to have been imported, and to
have been liable to octroi on import, may demand the receipt or pass covering such goods, and
may verify the entries therein by inspection of the goods, and any person called upon for his
receipt or pass under this sub-rule shall produce it and shall permit the officer demanding it to
inspect the goods.

[(2) If, on checking the goods with the receipt or pass, the officer finds that all the items in the
receipt or pass are correct, he shall sign the coupon attached to the receipt or pass; he shall tear
the coupon off the receipt or pass and keep it for comparison with the counterfoil or the carbon
copy, as the case may be, at the barrier, and shall then endorse his name on the back of the
receipt and return it to the presenter.]

(3) If the person-in-charge of the goods has no receipt or pass, or, if the officer finds reason to
believe that the full amount of octroi has not been paid on the goods or that the goods do not
tally with the description entered in the receipt or pass, such officer may, and, if he finds that
the second foil of a pass granted order rule V-24 has not been torn off, shall take such person to
the head office, where the case shall be enquired into by the Octroi Superintendent; such
person shall accompany such officer to the head office when called upon to do so under this
rule, the Octroi Superintendent, if he is satisfied that the octroi payable on such goods has not
been paid or has not been paid in full, shall assess the amount of tax payable, demand payment
of the amount from the person-in-charge of the goods and, on receipt of the amount, shall fill
up a receipt in duplicate by carbon process in Form O.4, retain the carbon copy and hand the
original with the coupon attached duly filled up to the person-in-charge of the goods; the Octroi
Superintendent shall subsequently report the case to the Secretary with a view to the orders of
the committee being taken as to whether a prosecution should be instituted under section 78 of
the Act.
[Provided however that in case of motor vehicle traffic the period allowed shall not exceed two
hours and for other traffic three hours except in special circumstances with the previous
sanction of the Government.]

(4) An officer obtaining coupons under sub-rule (2) of this rule shall take such coupons to the
barriers or barrier from which they were issued and shall there verify the coupons with the
counterfoils or carbon copies, as the case may be, and, if he finds that the entries are correct,
shall initial the counterfoils or carbon copies, as the case may be, and drop the coupons into the
barrier cash-box : if in any case a discrepancy is detected, he shall forward the coupon
concerned under separate cover to the head office with a report.

V.34. Notice to be given of seizure of goods. - When any goods are seized in exercise of the
power conferred by section 82 of the Act, the officer seizing them shall immediately give or send
to the importer or exporter a notice in Form O.11.

V.35. Money to be dropped at once into the cash-box. - All money received at a barrier shall at
once be dropped by the collecting officer receiving into the barrier cash-box of which the key
shall be kept by the Octroi Superintendent [or] [Moharrirs in charge of the octroi Barriers;
provided they have deposited adequate security in terms of rule XVII.2].

V.36. Progressive totals of receipts to be filled up at once. - Every collecting officer issuing a
receipt or pass other than a transit pass [under any of these rules] shall fill up the progressive
total of octroi received at the foot of the [carbon copy of the receipt or pass at the time of issue
thereof, and the Octroi Superintendent, Octroi inspectors,] [ - ] or other officer inspecting a
barrier shall see that progressive totals are thus filled up, and not postponed till the end of
day; [carbon copies thus checked shall be initialled by the officer [ - ] making the inspection, who
shall also record the date of his inspection.]

V.37. List of persons permitted to compound for octroi to be maintained payment of

compensation to be in advance. - (1) Persons permitted under the provisions of clause (a) of
sub-section (2) of section 70 of the Act to compound for octroi may either compound for the
gross octroi payable in respect of all goods imported by them, obtaining refunds under the
provisions of these rules in respect of goods subsequently re-exported, or compound for the net
amount of octroi payable after deduction, from the gross amount payable in respect of goods
imported, of the amount to be refunded in respect of goods re-exported, and the committee
shall maintain a list in Form O. 12 of persons permitted so to compound in which shall be
entered in separate parts the names of persons permitted to compound for the gross octroi
payable by them and the names of persons permitted to compound for the net octroi payable
by them, respectively, and such list shall be kept corrected up to date and a copy in English and
vernacular of the entries in [columns 1 to 5] thereof, signed by the Secretary shall be posted at
each barrier, and to every such person books of passes in Form O.13 shall be supplied.

(4) Every person permitted to compound for octroi shall pay the amount of the composition
strictly in advance, and the expiry of the period of composition his name shall forthwith be
struck off the list maintained under sub-rule (1) unless payment in respect of the following
period has previously been made.

(3) The receipt of moneys in composition for octroi shall be acknowledged by a receipt in Form
G. 8 to be issued at the municipal office, or, if he has been authorized in this behalf, by the
Octroi Superintendent at the head office.
V.38. Procedure for import of goods covered by a composition pass. - Notwithstanding
anything contained in these rules, when a person who has been permitted to compound for
octroi wishes to import any goods on which octroi is leviable; he shall fill up a pass in Form O. 13
and send it to the barrier of import, where the officer in charge of the barrier shall see that the
name of the person who has signed the pass is on his copy of the [list] maintained under the
provisions of rule V. 37, and, if so, after satisfying himself that the goods to be imported agree
with the details entered in the pass, shall fill up the certificate at the foot of the pass and the
coupon, tear off the coupon and deliver it to the person who presented the pass, drop the pass
into his cash-box and suffer the goods to pass the barrier.

V.39. Procedure on export of goods by person permitted to compound for net octroi. - Every
person permitted to compound for the net octroi payable by him shall be provided with a book
of Export Passes in Form O. 14, and, notwithstanding anything contained in these rules, when
such a person wishes to export any goods on which octroi is leviable on import, he shall fill up a
pass in Form and O. 14, send it with the goods to the barrier of export, when the officer-in-
charge of the barrier shall see that the name of the person who has signed the pass is on his
copy of the list of persons permitted to compound for the net octroi payable by them, and, if so,
after satisfying himself that the goods to be exported agree with the details entered in the pass,
shall fill up the certificate at the foot of the pass and the coupon, tear off the coupon and deliver
it to the person who presented the pass, drop the pass into his cash-box and suffer the goods to
pass out.

V.40. Passes to be filed and used for calculation of terms of composition. - When cash-boxes
are received at the head octroi office, all passes in Form O. 13 or O. 14 found therein shall be
examined with a view to ascertaining that the certificate at the foot cover the details of the
passes, and such passes shall be filed separately under the name of each person permitted to
compound for octroi and shall serve as a basis on which to calculate the terms on which
composition should be allowed when such terms are next revised, consideration being had, in
the case of a person permitted to compound for the net octroi payable by him, to the net
amount of goods imported, after deducting from the total amount of goods imported as shown
by the passes in Form O.13, the amount of goods exported, as shown by the passes in Form
O.14, and no account being taken of exports not covered by a pass in Form O.14.

[V.41. Proceeding for closing the transaction of the day. - (1) At the close of each day, at the
time to be fixed by the Committee the transactions of the day shall be closed; the officer-in-
charge of each barrier shall have the progressive total of the money received for the day, taken
upto the last carbon copy or counterfoil, as the case may be, used in each book of receipts or
passes and entered thereon, and shall also have the receipts of the day classified in jinswars to
be compiled in Form O.13 the classification being in accordance with the classification adopted
in the sanctioned schedule of the tax; the items shall be entered one after the other, from the
carbon copies of the day, the serial number of the receipt or pass being quoted in column 1 and
the detail of the goods and the amount of octroi and the transit pass fee paid entered in the
appropriate columns; the cash-box, receipt books and jinswars shall then be forwarded to the
head office, together, with the second foils receipts retained under rule V. 25 and the foils of the
passes presented under sub-rule (2) of rule V. 15 and rule V. 21.

(2) To prevent delay, and to ensure that all moneys as received by the collecting officer are
immediately placed under lock and key, the committee shall provide a double set of books and
two cash-boxes at each barrier so that while one set is at the head office, the other shall be
available for use, the [jinswars] shall be on loose forms.]
[V.42. Opening of cash-boxes and counting of receipts. - The cash-boxes shall be opened and
the money contained therein counted at the Head Office by the Octroi Superintendent in the
presence of the municipal treasurer and where there is no treasurer, in the presence of the
Secretary or a municipal official in receipt of pay of not less than rupees fifty a month. At places
where the keys of such cash-boxes with the officer-in-charge of barriers he or the person
through whom the cash-box is forwarded shall also be present].

V.43. Procedure after the contents of cash-boxes have been counted. - (1) After the money in
each cash-box has been counted the amount shall be endorsed by the receiving officer at the
foot of the last carbon copy of the day for the barriers concerned, as well as on the
barrier [jinswars] the aggregate contents of all the cash-boxes shall then be brought to account
as prescribed in rule V. 44.

(2) When the money in cash-box has been counted, the carbon copies received from the barrier
concerned shall be examined by the Octroi Superintendent, who shall check at least two per
cent of them in detail, initialling the checked carbon copies in proof of having done so, and shall
see that the progressive totals in the books are correct; if the total for the day agrees with the
total endorsed on the carbon copy and jinswars under sub-rule (1) of this rule, the last carbon
copy on which the total for the day has been entered shall be signed by the Octroi
Superintendent and [ - - ] official in whose presence the cash-box was opened.

(3) The coupons found in the boxes from the barriers shall be examined as a check on the work
of the inspectors and then kept until the next audit of the accounts.

[(4) The foils of passes (Form 2) received under sub-rule (2) of rule V. 15 and those (Form O.5)
under rule V. 21 and the second foils of receipts (Form O.8) retained under rule V.25 and
forwarded to the head office under sub-rule (1) of rule V. 41 shall be pasted on their
counterfoils or carbon copies, as the case may be; and if, when examining the counterfoils or
carbon copies required by sub-rule (4) of rule V. 15 of the Octroi Superintendent finds any
counterfoil dated two days previously on which the foil has not been pasted, he shall at once
cause a special investigation to be made.]

(5) On completion of the procedure prescribed in sub-rules (1) to (4) of this rule, the cash-boxes
and pass books shall be returned to the barriers without delay; the jinswars shall be retained in
the head office.

V.44. Procedure for bringing the cash to account. - The cash shall be brought to account in the
following manner -

(i) if the Secretary himself, or through the Municipal Treasurer, receives the collections,
he shall bring them to account direct in his General Cash-book (Form G.2), and remit
them to the treasury in the usual way;

(ii) if the Octroi Superintendent receives the collections, and if the head office is in the
same building as the officers of the Secretary, the procedural shall be similar to that laid
down in clause (i) of this rule; if the Octroi Superintendent receives the collections, and if
the head office is at a distance from the office of the Secretary, he shall enter them under
the appropriate heads in columns 1 to 4 of the cash-book to be kept up by him in Form O.
16; in column 5 he shall show the amounts remitted to the treasury or municipal office,
as the practice may be, the book shall be closed daily and the money remitted with a
challan in Form G. 7 or G. 9, as the case may be;
 (iii) if the Octroi Superintendent remits the money direct to the treasury, one of the foils
of the challan (Form G. 7) returned from the treasury shall be filed by him in a guard file
as his receipt and the other shall be sent to the Secretary with a statement in Form O. 17;
on receipt of the challan, the Secretary shall enter the amount shown there in his General
Cash-book (Form G. 2);

(iv) if the Octroi Superintendent remits the money to the municipal office, he shall send it
with a challan in Form G.9, and the Secretary shall receive it and bring it to account in his
General/Cash-book (Form G. 2), one foil of the challan shall be returned to the Octroi
Superintendent as a receipt, and the other kept by the Secretary as a voucher for his
entry in the General Cash-book;

(v) if the Octroi Superintendent receives the collections under the latter part of clause (ii)
of this rule, the Secretary shall check the Cash- book (Form O. 16) of such Superintendent
once a month, and sign it in token of his having done so, adding the date of his signature.

V.45. Compilation of head office jinswars. - (1) The jinswars received from the barriers shall
be arranged each day in a fixed order, and the total of all the barriers for the day and the
progressive total of all the barriers carried on from the beginning of each month shall be
entered at the foot of the jinswar of the last barrier.

(2) From these [jinswars] shall be compiled each day the head office jinswar in From O. 17; the
columns of this jinswar shall be totalled every month, and at the end of the year a statement
showing the totals under each head of the jinswar for the whole year shall be prepared and
submitted with other prescribed returns to the Deputy Commissioner.

V.46. Refund of octroi when payable. - (1) Subject to the provisions of rule V. 15, V. 39, V. 61A
and V. 61B every person who exports goods, on which octroi (with refunds) is payable on
import, shall be entitled to a refund in respect of such goods, provided that -

(a) when octroi (with funds) has been newly imposed in a municipality or any goods or
the rates of octroi (with refunds) on any goods have been revised, a refund shall not be
given in respect of such goods or shall be given at the old rates for such period after the
imposition of the tax or the revision of the rates as the [State Government] may in each
case prescribe;

[(aa) no refund shall be given in respect of goods which have been used [or sold] after
import within octroi limits;]

(b) no refund of less than eight annas shall be given;

(c) the refund payable in respect of goods which have been manufactured within octroi
limits from raw material on which octroi (with refunds) is payable on import shall not
exceed the octroi payable on such raw material on import and no refund shall be payable
in respect of goods produced within octroi limits or manufactured within octroi limits
from raw material on which octroi is not payable on import.

[-]

V.47. Proof of previous payment of octroi not to be demanded except in certain cases. - No
proof of the previous payment of octroi in respect of the goods to be exported shall be
demanded before a refund is given in respect of such goods, provided that such proof may be
demanded and no refund shall be payable except on the production of such proof to the
satisfaction of the committee -

(a) for such period as Government may prescribe after an area has newly been included
within octroi limits, from any person resident or carrying on business in such area who
claims a refund; or

(b) in respect of any of the following goods, namely -

(i) Benares cloth;

(ii) silk;

(iii) silk or cotton lace;

(iv) gold or silver lace;

(v) foreign tobacco;

(vi) cigars and cigarettes;

(vii) fancy goods;

(viii) scents;

(ix) saffron, musk or ambar;

(x) shawls and fine pashmina;

(xi) gold or silver or electroplated goods;

(xii) watches and clocks;

(xiii) medicines;

(xiv) small cardamoms;

(xv) precious stones and pearls;

(xvi) fine muslin;

[(xvii) motor vehicles of every description;]

(xviii) any other goods in respect of which Government may by notification declare
that a committee may demand such proof.

V.48. Claims for refunds to be dealt with promptly. - Claims for refunds shall be promptly
dealt with, and when a claim has been admitted, shall be paid on demand even though the
budget grant for refunds is thereby exceeded.

V.49. Notices as to the manner of obtaining refunds to be printed and posted. - The
committee shall have notices printed and kept at the head octroi office for free distribution
showing the manner in which refunds may be obtained, and copies of such notices shall be
posted at each barrier and at other public places.

V.50. Appointment of officer in charge of refunds. - The committee shall appoint an officer or
member to be in charge of the payment of refunds, and such officer or member shall attend
every day, excluding Sundays and other holidays, at the head octroi office for such hours as the
committee may prescribe.

V.51. Permanent advance to be given for refunds. - The committee shall grant to the officer or
member in charge of refunds a permanent advance for the payment of refunds of such amount
as the committee may prescribe, provided that such amount shall ordinarily be equal to the
average monthly amount of refunds paid.

V.52. Presentation of refund applications. - (1) Every person wishing to obtain a refund in
respect of goods to be exported by him shall fill up columns 1 to 10 of an application in Form O.
18, which he may obtain free of charge from the head octroi, office, and, after signing and
dating the application, shall present it at the head octroi office.

[(2) An [application (Form O. 18)] made under the provisions of sub-rule (1) shall be made by the
exporter of the goods himself or by an agent duly authorized by a power of attorney and the
applicant may nominate a representative to accept payment on his behalf by authority in
writing in Form O. 18].

(3) No application made under the provisions of sub-rule (1) shall relate to more than one
consignment of goods or to the goods of more than one person, but an application may be
made in respect of more than one description of goods to be exported in one consignment,
provided that goods of different descriptions shall be detailed separately in the application and
no refund shall be payable in respect of goods of a single description on which the octroi
payable on import is less than eight annas.

V.53. Verification of refund applications. - (1) The committee shall appoint one or more
verifying officers, who shall be members or responsible officers, and not officer in charge of the
barriers or clerks, for the verification of [applications] presented under rule V. 52; and when
such an application is presented, the verifying officer shall satisfy himself that the goods to be
exported agree with the details entered in the application, shall calculate the refund payable,
and, after filling up columns 11 to 15 of the form, shall sign the certificate at the foot of the
form, being careful to insert the exact hour and date of the examination and to record in words,
as well as in figures, the amount of refund admissible.

(2) The goods to be exported need not necessarily be brought to the head octroi office for the
purpose of the verification of the application under the provisions of sub-rule (1) if the
committee can arrange otherwise, and in any case the verifying officer shall exercise discretion
and good faith as to the nature and extent of examination necessary in the interests of
committee, and shall cause no avoidable injury to the goods examined and no unreasonable
delay to the exporter, and the committee shall take measures to ensure that the provisions of
this sub-rule are duly complied with.

(3) If the proportion of goods exported by rail is sufficiently large to warrant such procedure, the
committee shall require the verifying officer to attend daily at specified hours at the railway
barrier.
(4) The committee shall not appoint to be a verifying officer the officer or member appointed
under rule V. 50 to be in charge of the payment of refunds.

V.54. Details of application to be entered in Refund Register. - (1) When an application has
been verified under the provisions of rule V. 53, a refund clerk shall enter details of the
application in columns 1 to 5 of a Refund Ledger to be maintained in Form O.19 note the serial
number in the places provided at the top of the application form and the coupon attached
thereto, fill in the date and hour by which the goods must be exported in column 16 of the
application form and hand the application to the exporter.

(2) The committee shall prescribe the interval not exceeding twelve hours within which goods
must be exported after an application has been handed back to an exporter and may prescribe
different intervals in respect of different barriers of export.

V.55. Procedure at export barrier. - (1) When an exporter has received back
his [application] under the provisions of rule V. 54, he shall take or send it with the goods to be
exported to the export barrier.

(2) If the application with the goods is presented at the export barrier before the time entered
in column 16 of the form has passed, the officer-in-charge of the barrier, after seeing that the
goods actually being exported agree with the details mentioned in the application, shall fill up
and sign the certificate on the reverse of the application and of the coupon, shall tear the
coupon, drop it into his cash box and return the application to the exporter; and, if the goods
brought to the barrier for export do not agree with the details entered in the application, he
shall make a note on the reverse of the application as to the goods actually brought to the
barrier for export, and no refund shall be payable in respect of the consignment unless the
exporter has the goods reverified in accordance with the provisions of rule V. 53.

(3) If the application with the goods is presented at the export barrier after the time entered in
column 16 has passed, the officer-in-charge of the barrier shall enter on the reverse of the
application the time at which the application with the goods was presented and no refund shall
be payable in respect of the consignment unless the exporter has the goods reverified in
accordance with the provisions of rule V.53.

(4) When goods are reverified as required by the provisions of sub-rule (2), or sub-rule (3) all
entries made by the verifying officer or refund clerk on the form shall be made in red ink.

V.56. Payment of refund. - (1) When an application has been certified under the provisions of
sub-rule (2) of rule V.55, and the goods to which it relates have been exported, the exporter or
representative authorized on the application to receive payment of the refund shall, as soon as
may be, and in any case not later than thirty days from the date of the registration of the
application in the Refund Ledger (Form O.19) under the provisions of rule V. 54, present the
application at the head octroi office, together with the railway receipt if the consignment has
been exported by rail, or, if the goods are perishable goods, such as meat, fresh fruit. vegetables
or pan, or have been exported as personal luggage accompanying the exporter a written
declaration of the details of the consignment.

(2) When an [application] is presented under the provisions of sub-rule (1), a refund clerk shall
check it with the entry relating thereto made in the Refund Ledger (Form O.19) under the
provisions of sub-rule (1) of rule V. 54, shall take a copy of the railway receipt, if any, in a
register to be maintained in Form O. 20, shall fill up and sign the report on the reverse of the
application and shall lay the application before the officer or members in charge of refunds, who
shall pass an order for payment and make the refunds to the exporter or person authorized to
receive payment, taking his acknowledgement in the space provided on the form, and stamping
the application as "paid" and returning the railway receipt, if any, after stamping it with a
municipal stamp.

(3) Details of each payment made under the provisions of sub-rule (2) shall be entered in the
order in which it is made in columns 9 to 12 of the Refund Ledger (Form O.19), the date of
payment being noted in column 7 of the ledger against the original entry; and, if for any reason
the full amount claimed is not paid, the amount short paid shall be entered in column 13.

(4) If an [application] is not presented within thirty days from the date of its registration in
the [Refund Ledger] under the provisions of rule V.54, it shall be deemed to have lapsed, and no
refund shall be payable in respect of the goods to which it relates, and the necessary entries
shall be made in columns 7 and 8 of the Refund Ledger; provided that, if an application has been
lost, and intimation of the loss is given to the officer or member in charge of refunds within
thirty days from the date of the registrations of the application in the Refund Ledger under the
provisions of rule V.54, the refund may be paid if such officer or member is satisfied, by a
reference to the Refund Ledger and the coupon detached from the application under the
provisions of sub-rule (2) of rule V.55, that the goods to which it related have actually been
exported; provided further that, if in such a case a refund is to be paid; a search fee of such
percentage of the value of the refund as the committee may fix, but of not less than four annas,
may be recovered from the applicant by deduction from the amount of refund payable.

V.57. Check of coupons at head octroi office. - (1) When coupons filled up under the
provisions of sub-rule (2) of rule V.55 are received at the head octroi office, the details entered
therein shall, if the [application] from which they have been detached have been received, or if
the applications have not yet been received, when they are received, be checked with the
applications, and the coupons shall thereafter be pasted upon the applications.

(2) If, when the details entered in a coupon are checked under the provisions of sub-rule (1)
they are found not to agree with the [application], or if in any case a claim has been paid and
the coupon relating thereto is not received from the barrier when the cash-boxes are received, a
special investigation shall at once be made by the officer or member in charge of refunds.

V.58. Jinswar of refund payments to be maintained. - The refund payments made each day
shall be compiled into a jinswar in Form O.15, a line being given to each application paid and
daily and progressive totals being taken at the foot of the statements.

V.59. Closing of Refund Ledger. - (1) The Refund Ledger (Form O.19) shall be closed at the end
of each month and signed by the Octroi Superintendent and by the officer or member in charge
of refunds.

(2) The method of closing shall be as follows -

(a) columns 4, 12 and 13 shall be totalled;

(b) column 8 of the previous month's lapse shall be filled up and totalled, and shall be
added to the total of columns 12 and 13 for the current month;
 (c) the balance shall then be struck by deducting the total now arrived at, i.e., the
aggregate of columns 12 and 13 of the current month and column 8 of the previous
month, from the total of column 4 of the current month plus the opening balance; this
balance will be the opening balance for the next months, and shall be proved in the
Refund Ledger by noting the number and amount of each unpaid refund application, the
aggregate of which should agree with the balance.

V.60. Recoupment of permanent advance for refunds. - (1) When the Refund Ledger is closed
in the manner prescribed in rule V. 59 or at such intermediate periods as may be necessary, the
permanent advance shall be recouped on a bill in From G.13, supported by all the applications in
hand which have been paid up to date, the total amount of the bill corresponding with the total
payments up to date as entered in column 12 of the Ledger; the date and amount of the bill
shall be entered in columns 15 and 16 of the Ledger, and on receipt of the cheque in payment of
the bill the number and date of the cheque shall be entered in column 17.

(2) All bills paid under the provisions of sub-rule (1), together with the applications in support,
shall be filed separately for audit purposes.

V.61. Extraordinary passes for goods exported and re-imported. - [(1) Notwithstanding
anything contained in these rules, if any person wishes to export goods and subsequently
reimport them free of octroi and in the case of octroi (with refunds) without obtaining a refund
on export, he shall apply at the [Central barrier] for a pass in form O.21.]

(2) When a [pass] has been obtained under the provisions of sub-rule (1), the person in-charge
of the goods shall take them under the supervision of a peon, if possible, to the barrier of
export, where they shall be presented within such time as the committee may prescribe, having
regard to the distance from the [Central barrier] to the barriers concerned, and the officer in
charge of the barrier shall see that the goods tally with the details entered in the pass; and if
they do so and the time by which the goods should have been presented has not passed, shall
sign the certificates on the export coupon, return the pass to the person in-charge of the goods
and send the coupon to the [Central barrier], where it shall be pasted on to the original
counterfoil; or, if the goods do not tally with the details entered in the pass or the time by which
they should have been presented has passed, shall refuse to sign the export coupon and shall
return the pass to the [Central barrier.]

(3) When goods exported on a pass in Form O.21 under the provisions of sub-rules (1) and (2)
are brought back for reimport the officer-in-charge of the barrier shall demand the pass, satisfy
himself that the articles to be reimported are covered by the pass, and, if they are so covered,
shall endorse the return coupon and tear it off for submission to the [Central barrier], where it
shall be pasted on the counterfoil with the exit coupon, return the pass to the person-in-charge
of the goods and suffer the goods to pass the barrier; and, if the goods do not appear to be
covered by the pass, shall deal with them as if they were goods declared to be intended
for [consumption], use of sale within octroi limits.

[In the case of articles which have undergone certain processing like dyeing, enameling, grinding
or husking, etc., these should at the time of import be presented at the Central Barrier under
the escort of a peon from the reimport barrier and an officer not below the rank of an Assistant
Octroi Superintendent should verify the fact that the same articles which were exported have
been reimported after processing. In the case of paddy exported and reimported in the form of
rice adequate margin in weight shall be left for husk. The Committee shall prescribe a ratio
between paddy and rice as and when it thinks necessary. The articles thus exported should be
reimported within a limit of one month. This limit may be extended up to three months in case
of necessity by the Octroi Superintendent].

[-]

[V.61A. Passes for wheat exported and reimported in the form of wheat flour. - (1) In a
municipality in which the rate of octroi on wheat is not less than the rate of octroi on wheat
flour of all kinds, any person who wishes to export wheat for purposes of having it ground and
subsequently to reimport wheat flour without obtaining a refund on export and paying octroi on
import may, on application to the officer in charge of the barrier by which the wheat is
exported, if the quantity of such wheat is not more than one maund, or to the head octroi office
if the amount of wheat exceeds one maund, obtain a pass in form O.21A, and [officer in charge
of the barrier] or the official concerned at the head octroi office, as the case may be, shall fill up
the counterfoil and columns 1 to 6 of the foil of the pass, tear off the foil, and give it to the
exporter.

(2) When wheat exported on a pass in form O.21, under the provisions of sub-rule (1), is brought
back in the form of wheat flour for reimport, the officer in charge of the barrier shall demand
the pass, satisfy himself that the time by which wheat flour should have been presented for
reimport at the barrier has not passed and that the weight of the flour does not exceed the
weight of the wheat which was exported from the municipality on that pass and shall then fill up
column 7 of the pass, place his signature in column in token of the wheat flour being covered by
the pass, fill up the entrance coupon, tear it off, paste it on the relevant counterfoil, return the
pass to the person in-charge of the wheat flour and suffer him to pass the barrier, and if the
wheat flour does not appear to be covered by the pass or the time within which it should have
been reimported has passed shall deal with it as if it was declared to be intended for use or
consumption within octroi limits.

(3) The period within which wheat flour shall be imported free of octroi shall be prescribed by
the Committee, having regard to the distance of the mill or mills at which wheat is usually
ground and the barrier from which wheat is exported and the time taken to have wheat ground.

(4) This rule shall not apply to any municipality unless the committee has, by a resolution,
agreed its extension.]

[V.61B. Passes of animals imported or exported for treatment at a veterinary hospital. - In a

Municipality in which live animals are liable to octroi on import, any person who imports such
animals into the octroi limits for the purpose of treatment at a Veterinary Hospital situated
within such limits, or exports such animals from such limits for the same purpose if the
Veterinary Hospital is situated outside such limits shall obtain a pass in form O.21-B free of
charge. The officer in charge of the barrier shall fill in the first four columns of the pass and
allow the animals to pass. When such animals are brought back to the barrier, the officer-in-
charge shall verify whether the marks of identification tally with those shown in the pass and
shall place his signatures in column 5. If, however, the animal imported for treatment in octroi
limit dies in the hospital or in transit the owner shall export the dead body out of the octroi
limits. The pass shall be valid for seven days after the day of issue only.]

V.61C. Extraordinary passes for goods imported for repair and to be re- exported. - (1)
When goods liable to octroi are imported into a Municipality for repairs and subsequent export
the importer shall obtain a pass in form O.21C. The [officer in charge of barrier] shall fill up the
counter foil and columns 1 to 8 of the foil of the pass, tear off the foil with the exit-coupon
attached thereto and hand it over to the importer.

[Explanation. - For the purpose of this sub-rule a chasis when imported into a municipality for
the fabrication of body shall be deemed to have been imported for repairs.]

(2) The goods after repairs shall be brought to the barrier of import and the [officer in charge of
the barrier] shall, if the time covered by the pass has not expired and the goods tally with those
entered in the pass, fill up the exit coupon, tear it off and hand back the pass to the importer.
The exit coupon thus detached shall be pasted with the original counterfoil. If, however, the
description of the goods does not tally with the particulars entered in the pass or the time of
export has passed the [officer in charge of the barrier] shall make a note of the discrepancy in
column 9 of the pass and shall then proceed to assess the goods as if the goods detailed in the
pass were being imported for consumption, use or sale within octroi limits.

(3) The repair passes shall be examined by the Octroi Superintendent daily with a view to seeing
that the [exit coupons] have been pasted in respect of all passes the term of which has expired.

(4) The record of passes to which the exit coupons have not been attached will be noted in the
register of missing transit passes form O. 23. A special investigation shall than be started at once
to realize or remit, under rule XVII. 13 of the Municipal Account Code, the octroi on the goods
imported on the pass.

(5) The committee shall by a resolution fix a period not exceeding fifteen days within which
goods of a particular description should be exported after repairs. The period so fixed shall be
exhibited at every barrier and the officer-in-charge of the barrier at which such goods are
imported shall enter the period accordingly in column 6 of the repair pass in form O.21C. The
committee may by a resolution delegate to the Secretary or the Octroi Superintendent the
powers to extend the period in cases of real necessity.

V.62. Passes for animals taken out daily to graze. - (1) In a municipality in which live animals
are liable to octroi on import any person who sends such animals out to graze beyond octroi
limits may, on application to the officer- in-charge of the barrier by which such animals are
taken out, the [officer-in-charge of the barrier] shall fill up the first three columns of the pass,
and on their return shall count them, and after seeing that the number agree with the number
taken out in the morning, shall place his signature in column 4.

(2) Passes in Form O.22 are intended for daily use for a month or more, and shall be printed on
stout paper and kept in the possession of the persons who take the animals out to graze.

V.63. Appeal from assessment of octroi by the Octroi Superintendent. - Any person
dissatisfied with the assessment of octroi payable in respect of his goods when such assessment
is made by the Octroi Superintendent, shall pay the amount of octroi assessed, but may within
seven days from the date of such payment appeal to the committee against such assessment.

V.64. [Examiner, Local Fund Accounts, Punjab may authorize changes in details of
procedure to suit local circumstances]. - [(1) If in any municipality local circumstances are
such as to make changes in the details of the procedure prescribed in this chapter desirable for
the convenience of traders or of the octroi administration, [Examiner, Local Fund Accounts,
Punjab], may authorize such changes, provided that all such changes so authorized shall be
noted in the copies of the rules contained in this chapter which are posted at the barrier under
the provisions of rule V. 9.]

[(2) Government may, if local circumstances in any municipality justify it, amend or abrogate any
of these rules for that area.]

V.65. Penalties. - Any person who -

(a) commits a breach of sub-rule (1) of rule V.13; or

[(b) fails to present the goods along with the pass issued under the provisions of sub-rule
(1) of rule V. 15 at the export barrier within the time allowed under rule V.15(3); or]

[(c) fails to take goods along with the pass with coupon attached to the Head Octroi
Office as required by sub-rule 2 of Rule V. 18.]

(d) fails to take or send a railway receipt to the head octroi office as required by sub-rule
(1) of rule V. 23; or

(e) [ - ]

(f) refuses to produce a pass or receipt demanded from him under the provisions of sub-
rule (1) of rule V.33; or [refuses to accompany the Octroi Superintendent or the Octroi
Inspector to the Central barrier when called upon to do so under sub-rule (3) of the said
rule]; or

(g) fails to comply with the provisions of rule V. 38 or rule V. 39.

[(h) fails to present the goods along with the pass obtained under the provisions of sub-
rule (1) of rule V. 61-C at the export barrier within the time allowed under sub-rule (5) of
the said rule and noted in column 6 of the said pass.]

[(i) fails to present the pass in form O.21B, obtained under rule V.61-B, for import of
animal with the animal (dead or alive) at the barrier within the time allowed under the
said rule.]

shall on conviction by a magistrate, be punishable with fine which may extend to fifty rupees.

[V.66. Refund when octroi (without refunds) has been substituted for octroi (with refund.) -
Any person who exports from the previous octroi limits of a municipality in which octroi
(without refunds) has been substituted for octroi (with refunds) any goods on which octroi (with
refunds) would have been leviable had the import of the goods taken place while the octroi
(with refunds) was in force, shall at any time within six months from the date on which the
octroi (without refunds) came into force be entitled to receive from the committee of the said
municipality a refund of sum equivalent to the amount of octroi (with refunds) that would have
been leviable on such goods, provided that -

(a) such refunds shall be subject to all the restrictions, stipulations and provisions with
regards to the payment of refunds laid down in this Chapter; and

(b) if the amount of refund claimed is twenty rupees or more, or if the committee has
reason to believe that the goods exported or to be exported or the raw material from
 which they were manufactured had not been imported previously to the date from which
the octroi (without refunds) came into force, no refund shall be payable by the
committee, except on being proved to the satisfaction of the committee that octroi (with
refunds) had actually been paid in respect of such goods.]

CHAPTER VI

[Terminal Tax]

VI.1. Definition and extent. - (1) In this chapter, unless there is anything repugnant in the
subject or the context -

(a) "barrier" means a place appointed under the provisions of rule VI.2.;

[(b) "carbon process" means writing a document in duplicate by an indelible pencil by

means of a double faced carbon paper];

(c) "railway barrier" means a barrier for the interception of traffic to and from railway
premises, so described by public notice exhibited at such barrier.

(2) The rules in this chapter shall not apply in respect of the assessment or collection of terminal
tax on goods imported or exported by rail in cases where the committee has arranged for the
collection of terminal tax on such goods by a railway administration.

VI.2. The establishment of barriers. - The committee shall appoint a place, near, or, with the
consent of the railway administration, on the railway premises and places at any other points,
on or in the immediate vicinity of the limits of the municipality that may from time to time be
determined as most suitable for intercepting import and export traffic, for assessing and
collecting terminal tax.

VI.3. Posting of terminal Tax Schedule and results at barriers. - A copy, in English and
vernacular, of the terminal tax schedule as sanctioned by Government, and duly authenticated
by the signature of the Terminal Tax Superintendent and the Secretary, and a copy, in English
and vernacular, of the rules contained in this chapter, shall be posted in a conspicuous place at
each barrier.

VI.4. The Terminal Tax Superintendent and the Assistant Terminal Tax Superintendent. -
(1) The committee shall appoint an officer to be Terminal Tax Superintendent who, in addition
to discharging any other duties imposed upon him by these rules, shall be responsible generally
for the assessment and collection of terminal tax in accordance with these rules and for the
proper discharge of their duties by other assessing, collecting and inspecting officer.

(2) The committee may appoint one or more Assistant Terminal Tax Superintendents, and may,
with the previous sanction in writing of the [Deputy Commissioner], determine by resolution
which functions and duties imposed by these rules upon the Terminal Tax Superintendent may
be discharged by such Assistant Terminal Tax Superintendents.

VI.5. Terminal Tax Inspectors. - The committee shall appoint, Terminal Tax Inspectors who in
addition to discharging any other duties imposed upon them by these rules, shall supervise the
working of the barriers, and shall see that the staffs of the barriers comply with the rules laid
down for their observance.
VI.6. The staff of barriers. - The committee shall appoint to each barrier a staff of muharrirs
and peons for the assessment and collection of terminal tax, and it shall be the duty of such staff
to see that all goods liable to terminal tax stopped at the barrier; and to deal with them
according to these rules.

[VI.7. Inspection of barriers. - (1) It shall be duty of the president, the vice president, the
secretary, the terminal tax superintendent of the committee and if there is an executive officer,
of that officer also to visit the barriers and to inspect the registers and accounts there
maintained in accordance with these rules.

(2) An inspection book shall be maintained at each barrier in Form [T.1], and the officials
mentioned in sub-rules (1) and (4) of this rule and also the inspectors of the department
inspecting the barriers shall note therein the results of their inspection making their notes as full
and detailed as possible.

(3) If in any such note any complaint is made as to the working of the barrier, a copy of the note
shall at once be sent by the officer-in-charge of the barrier through the terminal tax
superintendent to the secretary with a view to suitable action being taken.

(4) The barriers may also be inspected by the Local Audit staff at any time. The Local Audit staff
for this purpose may borrow from the terminal tax superintendent the key which opens the
cash boxes after giving a written receipt to the terminal tax superintendent. This key shall be
returned as soon as possible after the inspection is over.]

VI.8. Scales and weights to be provided at each barrier. - The committee shall provide at each
barrier a suitable set of scales and weights or a weighing machine which shall be kept in proper
working order by the muharrir or other officer-in-charge of barrier, and shall be tested at
intervals of not [more] than three months by the Terminal Tax Superintendent or by another
officer or a member as the committee may direct, who shall record the result of each test in
the [Inspection Book].

[VI.8A. (1) When goods liable to terminal tax are declared to be intended for immediate export
they shall be dealt with under either the Transit Pass System or the Transit Refund System.

(2) The Transit Refund System shall not be adopted by a committee, except on the
recommendation of the [Examiner, Local Fund Accounts, Punjab,] and with the sanction of
the [Deputy Commissioner].]

VI.9. Procedure in respect of goods for immediate export. - (1) [In municipalities in which the
Transit Pass System is in force when goods ordinarily liable to terminal tax on import or
export [are to exported immediately after import], a person importing such goods shall declare
them as such at the barrier of import, and shall specify the barrier through which they are to be
exported;] the officer incharge of the barrier shall then fill up a Transit Pass in Form T-2,
and [shall on payment of such fee], if any not exceeding two annas, as may be prescribed by the
Committee, hand the foil, [both coupons attached to the person incharge of the goods, who
shall forthwith take such goods to the barrier of export entered in column 9 of the pass] :

[Provided that no such fee shall be levied in any case in which the amount of the tax leviable on
articles in respect of which the pass is granted is less than two annas].
(2) When such goods are brought to a barrier for export, the person incharge of them shall
present the [pass] [with the acknowledgement coupon attached issued to him under sub-rule
(1) of this rule and the officer-in-charge of the barrier shall note in column 12 of the pass the
time at which it is presented], and shall check the goods with the particulars given in column 5
to 7 of the pass; then -

(a) if the goods tally with the particulars entered in the pass, and time of export entered
in column 10 has not passed, the officer in charge of the barrier shall allow the goods to
pass out, retaining the pass [for submission to the head office] [and shall hand over the
acknowledgement coupon to the exporter duly signed]; or

(b) if the description or weight of the goods does not tally with the particulars entered in
the pass, and there is any defect in the weight of any such goods as are ordinarily liable
to taxation on import, or any excess in the weight of such goods as are ordinarily liable to
taxation on export, or if any of the goods are of a description different from the
description of the goods entered in the pass and are ordinarily liable to taxation on
import or export, the officer in charge of the barrier shall make a note of the discrepancy
in column 14 of the pass, and shall demand payment of the amount of tax payable in
respect of such weight in defect or excess or in respect of the goods of such description,
and shall thereafter proceed as if the charge was a charge on account of goods imported
or exported in the ordinary way, or

(c) if the time entered in column 10 has passed before the pass is presented, the officer-
in-charge of the barrier shall demand the full amount of tax ordinarily payable on the
goods on import or export as the case may be, and thereafter shall proceed as if the
charge was a charge on account of goods imported or exported in the ordinary way.

(3) The committee shall, for the purposes of this rule, fix in respect of every two barriers the
period within which goods imported through one of them for immediate export must be
exported through the other, a schedule of the periods so fixed shall be exhibited at every
barrier, and the officer-in-charge of the barrier through which goods are imported shall
calculate and enter the time accordingly in column 10 of the pass in Form T-2.

[(4) When such goods could not be exported within the period fixed by the committee under
sub-rule (3) and the tax thereon has been duly paid the person-in-charge of the goods may
apply to the Secretary or, in municipalities where there is an Executive Officer, to that officer for
the refund of the tax paid. The Secretary or the Executive Officer, as the case may be, shall, if
satisfied that the goods have been actually exported, and that the delay was due to
circumstances over which the applicant had no control, grant a refund of the amount paid.]

(5) The officer-in-charge of the barrier of import shall each day send the counterfoil book to the
head office, where the Terminal Tax Superintendent shall examine each counterfoil and initial it
in token of having done so.

(6) Nothing contained in rules VI-10 to VI-15 shall apply to goods imported for immediate
export, except in the circumstances provided for in clauses (b) and (c) of sub-rule (2) of this rule.

[(7) The refunds allowed under sub-rule (4) shall be paid and adjusted in the accounts in the
manner laid down in sub-rule (8) of rule VI.9A.]
[VI.9A. - (1) In municipalities in which the Transit Refund System is in force when goods
ordinarily liable to terminal tax on import or export are to be exported immediately after import
a person importing such goods shall declare them as such at the barrier of import and shall
specify the barrier through which they are to be exported, the officer in charge of the barrier
shall assess and collect the terminal tax payable in respect of such goods as if such goods were
intended for consumption or use within terminal tax limits, but shall endorse the reverse of the
both receipt in form T.8 and its carbon copy with a stamp or slip in form T.8-A of which he shall
fill up the columns and shall then hand the receipt with its endorsement to such person and
suffer the goods to pass.

(2) When such goods are brought to a barrier for export the person-in-charge of them shall
present the receipt with endorsement issued to him under the provision of sub-rule (1) and the
officer-in-charge of the barrier shall note on the endorsement the time at which the goods are
presented, and shall check the goods with the particulars entered in the receipt, and shall then -

(a) if the goods tally with particulars entered in the receipt the time of export entered in
column 4 of endorsement has not passed, take an acknowledgement from the person in-
charge of the goods on the place provided on the endorsement form (form T.8-A) of the
receipt of a refund of the amount of terminal tax entered in column 7 of the receipt and
shall then pay such amount to such person out of his imprest and suffer the goods to
pass; or

(b) if the goods do not tally with the particulars entered in the receipt, or the time of
export entered in column 4 of the endorsement has passed before the receipt is
presented, the officer-in-charge of the barrier shall refuse to pay any refund and shall
send a report of the circumstances to the head office.

(3) The periods fixed under the provisions of sub-rule (3) of rule VI.9, shall be deemed to have
been fixed for the purposes of this rule also.

(4) When such goods could not exported within the period fixed by the committee under sub-
rule (3) the person-in-charge of the goods may apply to the Secretary or in Municipalities where
there is an Executive Officer, to that officer, for refund of the tax paid. The Secretary or the
Executive Officer as the case may be, shall, if satisfied that the goods have been actually re-
exported, and that the delay was due to circumstances over which the applicant had no control,
grant a refund of the amount paid.

(5) The endorsement to be made under the provisions of sub-rule (1) shall be numbered serially
for each receipt book and shall be independent of the numbers on the face of the carbon copies.

(6) For the payment of refunds under this system officers-in-charge of barrier shall be given
small imprests by the Secretary or the officer-in-charge of such refunds out of his permanent
advance; and at the end of each day shall verify their imprests by seeing that the cash in hand
plus the value of endorsed receipts is equal to the total amount of the imprest, and shall then
drop the receipts into the cash box with a covering memorandum.

(7) When the cash boxes are received at the head office, the officers authorised to open them
shall take out the endorsed receipts, check them with carbon copies in the receipt books
forwarded from the import barriers, and place his dated initials on such carbon copy in token of
his having carried out the check, and shall then send to each barrier muharrir an amount equal
to the total amount of terminal tax shown as refunded on the endorsed receipts received from
the barrier.

(8) (i) The refund payments made each day by each barrier muharrir shall be compiled into
a jinswar in from T.11, a line being given to each item of refund.

(ii) The total of the amounts shown as refunded on the endorsed receipts received from
all barriers shall be entered in the head office jinswar (form T.13) in red ink under the
totals of the day. From these totals the amounts of refunds shall be deducted and dealt
with in the accounts in accordance with the provisions of rule III.3.

(iii) The officer-in-charge of refunds shall keep the account of the permanent advance
given to him for this purpose in a register in form G.12. The advance shall be recouped in
the manner prescribed in rule XII.6 of the Code.]

VI.10. Railway receipts of imports to be registered. - (1) When any person receives the
railway receipts of goods consigned by railway, he [shall] before taking delivery of such goods,
take or send the railway receipt with the invoice, or in the absence of an invoice, with a written
declaration of the details of the consignment to the railway barrier where, if the goods are
found to be liable to terminal tax, the receipt and the invoice in or declaration shall be
abstracted into a Railway Receipt and Invoice Register of Imports to be kept up in Form T.3, the
entries in which shall be checked and verified personally by the officer-in-charge of the railway
barrier.

(2) The Terminal Tax Superintendent shall check the entries in the Railway Receipt and Invoice
Register of Imports with twenty-five per cent of the passes issued under rule VI.11 or VI.13, and
shall satisfy himself that the tax has been correctly assessed and he shall initial all entries and
passes checked and add the date of his check.

[(3) The Committee may with the previous sanction of the [Deputy Commissioner], appoint, an
auditor, or auditors periodically to examine the railway receipt and Invoice Register, and to
compare with the entries made therein the declarations, if any, filed under rule VI.11 and the
entries in the Register and declarations checked shall be initialled by the auditor or auditors
making the examinations.]

VI.11. Payment of Tax on rail-borne goods and grant of import pass. - The registration of the
consignment under rule VI.10 having been completed, the officer-in-charge of the railway
barrier shall calculate the terminal-tax payable, shall demand payment of the amount so
calculated from the presenter of the railway receipt; and on receipt of the amount shall return
the railway receipt and the invoice, if any, stamped with a municipal stamp, to the presenter;
the declaration, if any, received under rule VI.10 shall be stamped and filed; a pass shall then be
filled up in duplicate by carbon process in Form T.4, its coupon and second foil being left blank;
the carbon copy shall be retained and the original pass with its coupon and second foil handed
over to the presenter of the railway receipt.

VI.12. Presentation of rail-borne goods at the railway barrier. - Subject to the provisions of
rule VI.14, all goods removed from the railway premises shall be brought to the railway barrier
where the person in-charge of the goods shall present the [pass] if any, obtained under rule
VI.11 the muharrir, having satisfied himself that the goods agree with the details entered in the
pass, shall fill up the second foil of the pass, tear if off and retain it, and hand back the original
copy of the pass, with the coupon attached, duly filled up to the person in-charge of the goods.
VI.13. Payment of tax on goods not covered by an import pass. - Subject to the provisions of
rule VI.14, if the goods brought to the railway barrier do not agree with the details entered in
the pass, or if goods are brought in respect of which terminal tax is payable, but no pass has
been obtained, the officer-in-charge of the railway barrier shall assess the amount of terminal
tax payable on such goods, fill up a pass in duplicate, by carbon process, in Form T.4, demand
the amount so assessed from the person in-charge of the goods and on receipt of the amount
hand the said person the original with the coupon attached duly filled up, retaining the carbon
copy and second foil; particulars of the goods so taxed together with the name of the importer
and the amount of tax paid, shall then be entered in register of Unregistered Rail-borne Imports
to be kept up in Form T.5 and a note shall be made in column 5 of the carbon copy of the pass of
the number of the entry in that register, instead of the number of the entry in the Railway
Receipt and Invoice Register.

VI.14. Repayment of terminal tax on rail-borne goods in excess of amount due on goods
actually imported. - (1) Notwithstanding anything contained in rule V.12 or rule VI.13 if for any
reason, such as short delivery of goods by the railway administration or diversion of goods to
some other destination before import, the amount of goods actually imported is less than the
amount in respect of which terminal tax has been paid under the provisions of rule VI.11, the
officer-in-charge of the railway barrier shall note in red ink on the first and second foils and
coupon of the pass in Form T.4 the actual amount of goods imported, and the importer may,
within seven days from the date of actual import or from the date of the import of the last
instalment of a consignment, present at the head terminal tax office a claim for a drawback of
the amount of terminal tax paid in excess of the amount payable in respect of the goods actually
imported, and, if the Terminal Tax Superintendent is satisfied that such claim is correct, he shall
pass the claim for payment out of his imprest.

(2) The amount of goods in respect of which a claim is passed under sub-rule (1) and the amount
of terminal tax repaid shall be entered in the head office jinswar in red ink under the totals of
the pay, from which the amounts shall be deducted, and the payment shall be dealt with in the
accounts in accordance with the provisions of rule III.3.

(3) Claims for refunds on account of excess payments of terminal tax owing to miscalculations or
any other cause shall be dealt with so far as may be in accordance with the provisions of sub-
rules (1) and (2).

VI.15. Payment of tax on goods exported by rail and grant of an export pass. - (1) Every
person intending to export by rail goods on which terminal tax is leviable on export shall take
such goods to the railway barrier, the officer in charge of which shall calculate the amount of tax
payable in respect of such goods, shall demand the amount so calculated and on receipt of the
amount shall fill up a pass in duplicate by carbon process in Form T.6, retain the carbon copy
and hand the original with the coupon attached duly filled up to the exporter.

(2) The exporter having despatched the goods shall return to the railway barrier with the railway
receipt, which shall be abstracted into a Railway Receipt Register of Exports in Form T-3
attached to these rules, the number of the entry in such register being noted in column 7 of the
carbon copy of the [pass issued under sub-rule (1) of this rule], the railway receipt shall then be
returned to the exporter.

VI.16. Payment of tax on goods at barriers other than the railway barrier. - (1) When goods
liable to terminal tax on import or export are brought to any barrier other than the railway
barrier, the officer in charge of such barrier shall assess the terminal tax payable on such goods,
shall demand the amount to be assessed from the person in-charge of the goods, and on receipt
of the amount shall fill up a pass in duplicate carbon process in Form T-8, retain the carbon copy
and hand the original with the coupon attached duly filled up to the person in-charge of the
goods, as the case may be.

(2) When the tax has been imposed both on goods imported and on goods exported, separate
books of passes shall be used in respect of goods imported and goods exported respectively.

(3) A municipal committee may collect the tax by means of monthly bills instead of at the barrier
in case of articles imported into, or exported from, the municipality by Government
Departments [(The bills should be issued by carbon process in Form T-15)].

[(4) In the case of articles which are imported into or exported from a municipality by
Government Departments in respect of which the committee collects the tax by means of
monthly bills or are specially exempted from the payment of tax, the officer in charge of the
barrier shall enter the details of the goods in a pass form T.8-B which he shall prepare in
triplicate by means of carbon. One foil of this form shall be handed over to the importer or
exporter, the second forwarded to the Head Office for preparation of bills for comparison with
the counterfoil retained at the barrier and the third retained at the barrier.]

[VI.16A. - When under any of the rules contained in this Chapter assessment of terminal tax is
required to be made by the Terminal Tax Superintendent himself, such assessment shall be
made and the amount thus realized, acknowledged and brought to account in the same manner
as in the case of assessment and collection made at outpost barriers.]

[VI.17. Power to demand passes and inspect goods. - (1) The Terminal Tax Superintendent and
any Terminal Tax Inspector meeting a person in-charge of goods, which such officer deems to
have been imported or to be about to be exported and to have been liable to terminal tax on
import or export, may demand the import, export or transit pass and may verify the entries
therein by inspection of the goods, and any person who is called upon for his pass under this
sub-rule shall produce it and shall permit the officer demanding it to inspect his goods.

(2) If on checking the goods with the pass the officer finds that all the items in the pass are
correct, he shall sign the coupon attached to the pass, and shall then tear the coupon off the
pass and keep it for comparison with the counterfoil or carbon copy, as the case may be, at the
barrier, and shall endorse his name on the back of the pass and return it to the presenter.

(3) If the person-in-charge of the goods has no pass, or if the officer finds reason to believe that
the full amount of terminal tax has not been paid on the goods or that the goods do not tally
with the description entered in the pass, such officer may, and if he finds that the second foil of
a pass granted under rule VI.11 has not been torn off, shall take such person to the head
terminal tax office, where the case shall be enquired into by the Terminal Tax Superintendent;
such person shall accompany such officer to the head office when called upon to do so under
this rule; the Terminal Tax Superintendent, if he is satisfied that the terminal-tax payable on
such goods has not been paid or has not been paid in full, shall assess the amount, of tax
payable, demand payment of the amount from the person in-charge of the goods, and on
receipt of the amount; shall fill up a pass in duplicate by carbon process in Form T.8, retain the
carbon copy and hand the original with the coupon attached duly fill up to the person-in-charge
of the goods; the Terminal Tax Superintendent shall subsequently report the case to the
Secretary with a view to the orders of the committee being taken as to whether a prosecution
shall be instituted under section 78 of the Act.

(4) An officer obtaining coupons under sub-rule (2) of this rule shall take them to the barrier or
barriers from which they issued, and shall then verify the coupons with the counterfoils or the
carbon copies, as the case may be; and if he finds that the entries are correct, shall initial and
date the counterfoils or the carbon copies, as the case may be, and drop the coupons into the
barrier cash-box; and if in any case a discrepancy is detected, he shall forward the coupon
concerned under separate cover to the head office with a report.]

VI.18. Note to be given of seizure of goods. - When any goods are seized in exercise of the
power conferred by section 82 of the Act, the officer seizing them shall immediately give or send
to the importer or exporter a notice in Form T.9.

VI.19. Money to be dropped at once into the cash box. - All money received at a barrier shall
at once be dropped by the collecting officer receiving it into the barrier cash-box, of which the
key shall be kept by the Terminal Tax Superintendent.

VI.20. Progressive totals of receipts to be filled up at once. - Every officer issuing a pass other
than a transit pass or an extraordinary pass under any of these rules shall fill up the progressive
total of terminal tax received at the foot of the [carbon copy of the pass at the time of issue of
the pass, and the Terminal Tax Superintendent, Terminal Tax Inspectors,] [ - ] or other officers
inspecting a barrier shall see that the progressive totals are thus filled up, and not postponed till
the end of the day and [carbon copies thus checked shall be initialled by the officer [ - ] making
the inspection, who shall add the date of his inspection].

VI.21. Extraordinary passes for goods exported and to be re-imported. - (1) Notwithstanding
anything contained in these rules, with the sanction of the [Deputy Commissioner] which shall
only be accorded after consultation with the [Examiner, Local Fund Accounts, Punjab], the
committee may and in the case of Government property shall permit goods ordinarily liable to
terminal tax on export to be exported free of tax or goods ordinarily liable to terminal tax on
import to be re-imported free of tax, if such goods are declared at the time of export to be
intended for re-import, within such period as the committee may determine for such goods in
general or for a particular class or classes of such goods;

Provided that in the case of export or re-import of Government property, the sanction of
the [Deputy Commissioner] shall not be necessary.

(2) If any person wishes to export and subsequently re-import goods free of terminal tax under
the provisions of sub-rule (1), he shall apply at the head office for a pass in Form T.10, and after
obtaining such a pass, shall take such goods under the supervision of a peon, if possible, to the
barrier of export, where they shall be presented within such time as the committee may
prescribe, having regard to the distance from the head office to the barrier concerned and the
officer in charge of the barrier shall see that the goods tally with the details entered in the pass;
and, if they do so, and the time by which the goods should have been presented has not passed
shall sign the certificate on the export coupon, return the pass to the person in-charge of the
goods and send the coupon to the head office, where it shall be pasted on the original
counterfoil; or, if the goods do not tally with the details entered in the pass or the time by which
they should have been presented has passed, shall refuse to sign the export coupon and shall
return the pass to the head office, and, if the goods are liable to terminal tax on export, shall not
suffer them to pass, except on payment of the amount of terminal tax due and after issue of a
pass in Form T.8 under the provisions of rule VI.16.

(3) When goods exported on a pass in Form T.10 under the provisions of sub-rule (2) are
brought back for re-import, the officer-in-charge of the barrier shall demand the pass, satisfy
himself that the articles to be reimported are covered by the pass, and, if they are so covered,
shall endorse the return of the goods on the reverse of the pass, fill up the import coupon and
tear it off for submission to the head office, where it shall be pasted on the counter-foil, with
the export coupon, return the pass to the person-in-charge of the goods and suffer the goods
pass to the barrier, and, if the goods do not appear to be covered by the pass shall deal with
them as if they were goods brought for import in the ordinary way, forwarding a report as to the
circumstances of the case to the head office.

(4) If, in any case a person has exported goods ordinarily liable to terminal tax on export on a
pass in Form T.10, and does not re-import them within the period determined by the committee
under the provisions of such rule (1), the Terminal Tax Superintendent shall by notice call upon
such person to pay the amount of terminal tax which would have been payable in respect of the
goods if they had not been declared as for re-import; and such person shall forthwith pay such
amount,

VI.22. Passes for animals taken out daily to graze. - In a municipality in which live animals are
liable to terminal tax on export or import any person who sends such animals out daily to graze
beyond terminal tax limits, may, on application to the officer-in-charge of the barrier by which
such animals are sent out, obtain a pass in Form O. 22, and, when such animals are taken out,
the barrier moharrier shall fill up the first three columns of the pass, and, on their return shall
count them, and, after seeing that the number agrees with the number taken out in the
morning shall place his signature in column 4, and no terminal tax shall be payable in respect of
such animals either on export or on import.

[VI.22A. Extraordinary passes for the goods imported for repairs and to be re-exported. -
(1) When goods liable to terminal-tax on import on export are imported into a Municipality for
repairs and subsequent export the importer shall obtain a pass in Form T.10-A. The barrier
moharrir shall fill up the counterfoil and columns 1 to 8 of the foil of the pass, tear off the foil
with the exit coupon attached thereto and hand it over to the importer.

(2) The goods after repairs shall be brought to the barrier of import and the barrier moharrir
shall, if the time covered by the pass has not expired and the goods tally with those entered in
the pass, fill up the exit coupon, tear it off and hand back the pass to the importer. The exit
coupon thus detached shall pasted with the original counterfoil. If, however, the description of
the goods does not tally with the particulars entered in the pass or the time of export has
passed, the barrier moharrir shall make a note of the discrepancy in column 9 of the pass and
shall then proceed to assess the goods as if the goods detailed in the pass were being imported
for consumption, use, or sale within terminal tax limits.

(3) The repair passes shall be examined by the Terminal-Tax Superintendent daily with a view to
see that the [exit coupons] have been pasted in respect of all passes the term of which has
expired.

(4) The record of passes to which the exit coupons have not been attached will be noted in the
register of missing transit passes form [T.14]. A special investigation shall then be started at
once to realize or remit, under rule XVII.13 of the Municipal Account Code, the terminal tax on
the goods imported on the pass.

(5) The committee shall by a resolution fix a period not exceeding fifteen days within which
goods of a particular description should be exported after repairs. The period so fixed shall be
exhibited at every barrier and the officer in charge of the barrier at which such goods are
imported shall enter the period accordingly in column 6 of the repair pass in form T.10-A. The
committee may be a resolution delegate to the Secretary or the Terminal-tax Superintendent
the powers to extend the period in cases of real necessity.]

VI.23. Procedure for closing the transactions of the day. - (1) At the close of each day, at a
time to be fixed by the committee, the transactions of the day shall be closed; the officer in
charge of each barrier shall have the progressive total of the money received during the day
taken up to the last carbon copy or counterfoil as the case may be used in each book of passes
and entered thereon, and shall also have the receipts of the day classified in jinswars to be
compiled in Form T.11, the classification being in accordance with the classification adopted in
the sanctioned schedule of the tax and separate jinswars, being complied in respect of goods
imported by rail, goods imported by road or river, goods exported by rail and goods exported by
road or river respectively, the items shall be entered, one after the other, from the [carbon
copies of the day, the serial number of the pass, the weight of goods and the amount the
terminal tax and the transit pass fee paid being entered in the appropriate columns]; the cash-
box, pass-books and jinswars shall then be forwarded to the head office, together with the foils
of passes presented under sub-rule (2) of the rule VI.9, and the [second foils] of passes retained
under rule VI.12 or rule VI.13.

(2) To prevent delay, and to ensure that all moneys as received by the collecting officer are
immediately placed under lock and key, the committee shall provide a double set of books and
two cash-boxes for each barrier, so that, while one set is at the head office the other shall be
available for use at the barrier; the jinswars [shall] be on loose forms.

VI.24. Opening of cash-boxes and counting of receipts. - The cash-boxes shall be opened and
the money contained therein counted at the head office, in the presence of a member of the
committee or of a municipal official in receipt of a pay of not less than fifty rupees a month, by
the Secretary; or, if the committee so direct by the Terminal Tax Superintendent; or, in places
where there is a Municipal Treasurer, by that officer, in the presence also of the Terminal Tax
Superintendent, provided that in municipalities of the first class the duties of the Terminal Tax
Superintendent under this rule may be performed by the Assistant Terminal Tax Superintendent
if the committee by resolution so directs.

VI.25. Procedure after contents of cash boxes have been counted. - (1) After the money in
each cash-box has been counted the amount shall be recorded by the counting officer at the
foot of the last [carbon copy of the day for the barrier concerned], as well as the
barrier jinswars and the aggregate contents of all the cash boxes shall then be brought to
account as prescribed in rule VI. 26.

(2) When the money in a cash-box has been counted, the [carbon copies received from the
barrier concerned shall be examined by the Terminal Tax Superintendent], who shall check at
least two per cent of them in detail, initialling and dating the checked [carbon copies in proof of
having done so, and shall see that the progressive totals in the books are correct;] if the total for
the day agrees with the total recorded on the [carbon copy and jinswars under sub-rule (1)], the
last carbon copy on which the total for the day has been recorded shall be signed by the
Terminal Tax Superintendent and by the member or official in whose presence the cash-box was
opened.

(3) The coupons found in the boxes from the barriers shall be examined as a check on the work
of the Inspectors and then kept until the next audit of the accounts of the committee.

(4) The foils of passes received under sub rule (2) of rule VI.9 and the second foils of passes
retained under rule VI.12 or rule VI.13. and forwarded to the head officer under sub-rule (1) of
rule VI.23 shall be pasted on their counterfoils or carbon copies as the case may be; and if, when
examining the counterfoils, [or carbon copies, as the case may be, as required by sub-rule (4) of
rule VI.19], the Terminal Tax Superintendent finds that any counterfoil [or carbon copy, dated
two days previously on which the foil has not been pasted,] he shall at once cause a special
investigation to be made. [Particular of every such foil shall be entered in a register to be
maintained in Form T.14].

(5) On completion of the procedure prescribed in sub-rules (1) to (4) of this rule, the cash-boxes
and books of passes shall be returned to the barriers without delay, the [jinswars] being
retained in the head office.

VI.26. Procedure of bringing the cash to account. - The cash shall be brought to account in the
following manner :-

(a) if the Secretary himself, or through the Municipal Treasurer, receives the collections,
he shall bring them to account direct in the General Cash-book (Form G.2), and remit
them to the treasury in the usual way.

(b) if the Terminal Tax Superintendent receives the collections, and if the head office is in
the same building as the office of the Secretary, the procedure shall be similar to that laid
down in clause (a) of this rule if the Terminal Tax Superintendent receives the collections
and the head office is at a distance from the office of the Secretary, he shall enter them
under the appropriate heads in columns 1 to 4 of the cash-book to be kept up by him in
Form T.12, in column 5 of which he shall show the amounts remitted to the treasury or
municipal office, as the practice may be; the book shall be closed daily and the money
remitted with a challan in Form G.7 or G.9 as the case may be :

(c) if the Terminal Tax Superintendent remits the money direct to the treasury, one of the
foils of the challan (Form G.7) returned from the treasury shall be filed by him in a guard
file as his receipt and the other shall be sent to the Secretary with a statement in Form
T.13 on receipt of the challan, the Secretary shall enter the amount shown therein in his
General Cash-book (Form G.2);

(d) if the Terminal Tax Superintendent remits the money to the municipal office, he shall
send it with a challan in Form G.9, and the Secretary shall receive it and bring it to
account in his General Cash-book (Form G.2); one foil of the challan [shall] be returned to
the Terminal Tax Superintendent as a receipt, and the other kept by the Secretary as a
voucher for his entry in the General Cash book;

(e) if the Terminal Tax Superintendent, receives the collections under the latter part of
clause (b) of this rule, the Secretary shall check the Cash-book (Form T.12) of such
Superintendent once a month, and sign it in token of his having done so.
VI.27. Compilation of head office jinswars. - (1) The [jinswars] received from the barriers shall
be arranged each day in a fixed order, and the total of all the barriers for the day and the
progressive total of all the barriers carried on from the beginning of each month shall be
entered at the foot of the [jinswar] of the last barrier.

(2) From these [jinswars] shall be compiled each day the head office jinswar in Form T.13, the
columns of which shall be totalled every month, and at the end of the year a statement showing
the totals under each head of the [jinswar] for the whole year shall be prepared and submitted
with other prescribed returns to the Deputy Commissioner.

VI.28. Appeals against assessments. - Any person dissatisfied with the assessment of terminal
tax payable on his goods made under any of these rules may require that the matter shall be
referred to the Terminal Tax Superintendent for decision; in such a case the officer-in-charge of
the barrier shall forward the goods to the head office, under the escort of a peon, together with
a brief report, of which he shall keep a copy in a memorandum book, for the decision of the
Terminal Tax Superintendent; if such person is dissatisfied with the decision of the Terminal Tax
Superintendent, he shall pay the terminal tax, but may appeal to the committee against such
decision, provided that he lodges his appeal within seven days from the date of such payment.

VI.28A. Examiner, Local Fund Accounts, Punjab may authorise changes in details of
procedure to suit local circumstances. - If in any municipality local circumstances are such as to
make changes in the details of the procedure prescribed in this chapter desirable for the
convenience of traders or of the terminal tax administration, the Examiner, Local Fund
Accounts, Punjab may authorize such changes, provided that all such changes so authorized
shall be noted in the copies of the rules contained in this chapter which are pasted at the
barriers under the provisions of rule VI.3.

VI.29. Penalties. - Any person -

(a) who fails forthwith to take any goods to the barrier of export as required by sub-rule
(1) of rule VI.9, or

(b) who fails to take or send a railway receipt to the railway barrier as required by rule
VI.10, or

(c) who fails to bring the goods to the railway barrier, or refuses to present his pass as
required by rule VI. 12, or

(d) who fails to return to the railway barrier with the railway receipt as required by sub-
rule (2) of rule VI.15, or

(e) who refuses to produce his import or export or transit pass or to permit his goods to
be inspected, when required to do so under sub-rule (1) of rule VI.17, or

(f) who refuses to accompany an officer to the head office when called upon to do so
under sub-rule 3 of rule VI.17, or

(g) who, subject to the conditions of rule VI.28, fails to pay on demand the terminal tax
assessed on his goods under any of these rules.

(h) fails to export the goods in respect of which pass has been obtained under the
provisions of sub-rule (1) of rule VI.22-A.
shall, on conviction by a magistrate; be punishable with fine which may extend to fifty rupees.

VI.30. Refunds when tax has been substituted for octroi. - Any person who exports from the
previous octroi limits of municipality in which terminal tax has been substituted for octroi, any
goods on which octroi would have been leviable had the import of the goods taken place while
the octroi tax was in force, shall at any time within six months from the date on which the
terminal tax came into force be entitled to receive from the committee of the said municipality
a refund of a sum equivalent to the amount of octroi that would have been leviable on such
goods, provided that-

(a) such refund shall be subject to all the restrictions, stipulations and provisions with
regard to the payment of refunds of octroi laid down in Chapter V, and

(b) if the amount of refund claimed is twenty rupees or more or if the committee has
reason to believe that the goods exported or to be exported or the raw material from
which they were manufactured had not been imported previously to the date from which
the terminal tax came into force, no refund shall be payable by the committee, except on
being proved to the satisfaction of the committee that octroi had actually been paid in
respect of such goods.

VI.31. At the close of each month the Committee shall obtain from the Superintendent of a jail
within its terminal tax limits a statement showing the manufactures sold by the jail to the public
and the amount of dutiable materials used in the articles so sold during the month. The
Terminal Tax Superintendent shall then assess the amount of terminal tax payable in respect of
such materials and demand the same from the Superintendent of the Jail by means of monthly
bills. The Terminal Tax Superintendent shall, on receipt of the amount, fill up a pass in duplicate
by carbon process in form T.8, retain the carbon copy and send the original with the coupon
attached duly filled up to the Superintendent of the Jail.

CHAPTER VII

Other Taxes

VII.1. Appointment and duties of tax Superintendent, Tax Inspectors, etc. - [Every
committee of a municipality in which any tax other than octroi or terminal tax or a tax in the
nature of a toll is imposed shall employ a tax superintendent and may appoint one or more
assistant tax superintendents and such number of tax inspectors, tax muharrirs and tax
collectors as may be necessary for the assessment and collection of such tax, provided that
nothing in this rule shall be deemed to prevent the committee from appointing to discharge the
duties of tax superintendent, the secretary or assistant secretary or to discharge the duties of
assistant tax superintendents, tax inspectors, tax muharrirs or tax collectors, any other
employees of the committee except sanitary inspectors.]

(2) The Tax Superintendent, in addition to any other duties imposed upon him by these rules,
shall be responsible generally for the assessment and collection in accordance with these rules
of all taxes other than octroi and terminal tax and of such other fees and dues as the committee
may direct and for the proper discharge of their duties by [assistant tax superintendent] Tax
Inspectors, Tax Muharrirs and Tax Collectors.
[(3) The assistant tax superintendent shall exercise such functions and duties as may be
entrusted to him by the committee except that the duties imposed upon the superintendent, -
vide rules VII.2(1) and VII.5(3) shall not be allotted to him.]

(4) The tax Inspectors, in addition to any other duties imposed upon them by these rules, shall
be responsible for the proper discharge of their duties by the Tax Muharrirs and Tax Collectors
attached to their respective circles, and it shall be their duty to see that all persons liable to a
tax by reason of their residence or ownership or occupancy of property within their respective
circles are assessed for payment of such tax, and to report to the Tax Superintendent all cases in
which such persons have escaped assessment or have been under-assessed and all changes of
ownership or occupation of property, new construction or alterations of buildings or fresh
acquisitions of animals or vehicles affecting the liability of such persons to taxation.

VII.2. Preparation of Assessment Register and Assessment List. - (1) In a municipality in

which a tax is imposed upon buildings or lands of which an assessment list has to be prepared
under the provisions of section [76] of the Act the Tax Superintendent shall, as soon as may be
after the date on which the tax comes into force, cause to be entered in columns 1 to 7 of an
Assessment Register in Form T.S. 1 particulars of all buildings of lands liable to tax, together with
the name and addresses of the owners or occupiers thereof, the annual value, area or frontage
thereof according to the nature of the tax and the amount of tax payable thereon; and when the
necessary entries have been posted in the register, shall lay it before the sub-committee, if any,
empowered to deal with the matter; or if there is no such sub-committee, before the
committee; and if the tax is to be assessed on the annual value of buildings or lands, shall at the
same time lay before the sub-committee or committees, as the case may be, full notes showing
with reference to sub-clauses (a), (b) or (c) of clause (1) of section 3 of the Act precisely how the
annual value of each building or plot of land has been calculated.

(2) The recommendations of the sub-committee, if any, empowered to deal with the matter and
the orders of the committee, with regard to the assessment to be made in each case shall be
recorded in columns 8 and 9 and 10 and 11, respectively, of the Assessment Register (Form T.S.
1) and the assessment list of which the preparation and publication are required by sections [76
and 77], respectively of the Act shall take the form of a copy of the entries in columns 1 to 5 and
10 and 11 of the Assessment Register.

VII.3. Recording of assessment objections and of the orders thereon. - After an assessment
list has been published as required by section 77 of the Act particulars of every objection
received under the provisions of section 78 of the Act, whether such objections are received in
time or not, shall be entered in a Register of Assessment Objections to be maintained in Form
T.S. 2 : and after such objections have been disposed of by the committee an abstract of the
order of the committee in each case shall be entered in column 5 of the register and the
necessary entries shall be made in columns 12 to 14 of the Assessment Register (Form T.S. 1),
and the necessary amendments made in the list published under the provisions of section 77 of
the Act as required by section 79 of the Act.

VII.4. Preparation of Tax Registers in other cases. - In a municipality in which any tax other
thana octroi terminal tax or a tax upon buildings or land or a tax in the nature of a toll is
imposed, the Tax Superintendent shall, as soon as may be after the date on which the tax comes
into force, cause to be prepared a register in Form T.S. 3 of persons liable for payment of the tax
and for this purpose may, if duly authorized by the committee in this behalf under the
provisions of sub-section (1) of section 86 of the Act, issue to any person a demand in Form T.S.
4 for such information as may be necessary in order to ascertain whether such person is liable to
pay the tax.

VII.5. Posting of Tax Demand and Collection Registers. - When an assessment list in respect
of a tax upon buildings or lands has been finally confirmed by the committee or when the Tax
Register in Form T.S. 3 in respect of any other tax has been prepared under the provisions of
rule VI. 4, columns 1 to 7 of a Tax Demand and Collection Register in Form T.S. 5 shall be posted
from the Assessment Register in Form T.S. 1 or the Tax Register in Form T.S. 3, as the case may
be.

(2) In order to prevent confusion, separate portions of the Tax Demand and Collection Register
(Form T.S. 5) shall, in the case of a tax upon buildings or lands, be set apart for assessees who
are owners and assessees who are occupiers, respectively.

(3) When the necessary entries have been posted in the Tax Demand and Collection Register
(Form T.S. 5), the Tax Superintendent shall certify below the last entry in that register that the
entries therein have been correctly brought from the Assessment Register (Form T.S. 1) or the
Tax Register (T.S. 3), as the case may be, that the total demand agrees with the total in the
Assessment Register or Tax Register and in subsequent years, that all arrears due on account of
previous year have been included in the Tax Demand and Collection Register of the current year.

VII.6. Correction of Assessment and Tax Demand and Collection Registers. - When any
amendment is made in an assessment list under the provisions of section 70 of the Act, or if the
amount of any tax is reduced under the provisions of clause (b) of sub-section (2) of section 83
of Act, or any person or class of persons or any property or description of property is exempted
under the provisions of clause (c) of that sub-section, or if the assessment or levy of any tax is
cancelled or modified as the result of an appeal under provisions of section 99 of the Act, the
necessary corrections shall be made in red ink in the Assessment Register (Form T.S. 1) or the
Tax and Collection Register (Form T.S. 5), and a note shall be made in the "Remarks" column of
each such register giving the authority for the correction.

(2) When any person is exempted from the payment of a tax under the provision of sub-section
(1) of section 83 of the Act, or any remission is granted under the provisions of section 85 of the
Act, no correction shall be made in the [Assessment Register] or [Tax Register], but the authority
for the exemption or remission and the amount of tax in respect of which such exemption or
remission is granted shall be entered in the appropriate places in columns 45 and 46 of the Tax
Demand and Collection Register Form (T.S. 5).

VII.7. Opening of fresh Demand and Collection Register each year. - At the beginning of
each year a fresh Tax Demand and [Collection Register] shall be opened in which shall first be
entered the names of all assessees against whom arrears are shown as due on account of the
previous years in column 47 of the register of the previous year, together with the amount of
such arrears, after which the entries relating to the demand of the current year shall be posted,
the word "arrears" being written in red ink in the "Remarks" column against the name of any
person in the list of the current year whose names is also entered in the list of persons from
whom arrears are due.

VII.8. Issue of bills for taxes. - (1) When columns 1 to 7 of the Tax Demand and Collection
Register (Form T.S. 5) have been posted, [a bill in Form T.S. 6 in duplicate shall be raised. One
copy of bill shall be delivered to each assessee and one copy shall be kept in the record of the
municipality :-]
Provided that in Municipalities which have introduced the National Cash Register for collection
of municipal dues the form of bill to be used will be approved by the Examiner Local Fund
Accounts, Punjab, under rule 1.6 of the Code.

(2) Assessees may make payment of bills in Form T.S. 6 either direct at the office of the Tax
Superintendent or, in large municipalities where a staff of Tax Collector is maintained, to a
member of such staff.

VII.9. Collection of taxes through tax Collectors. - (1) In municipalities in which a staff of Tax
Collectors is maintained, the Tax Superintendent shall distribute the bills for collection to the
Tax Collectors, details of the bills distributed being first entered in columns 1 to 3 of a Tax Bill-
Book to be maintained in respect of each tax in Form T.S. 7, and the signature of each Tax
Collector being taken at the time of the distribution of the bills.

(2) Every Tax Collector to whom bills are distributed shall present the bills to the assessees for
payment, and on receipt of the amount shall make an entry of the payment in a Collection
Challan in Form T.S. 8 and issue a receipt in Form G. 8 to the person who makes the payment,
provided that, if any assessee to whom a bill is presented wishes to make payment thereof
direct at the office of the Tax Superintendent, the bill shall be handed over to him after an
acknowledgement of receipt of the bill has been taken from him on the counterfoil of the bill.

[If an assessee is absent or refuses to accept or acknowledge the bill, the bill shall be issued to
him by the Tax Superintendent by post under postal certificate.]

(3) Every Tax Collector shall pay in his collections daily at the office of the Tax Superintendent
where his Collection Challan (Form T.S. 8) shall be totalled; and if the total agrees with the cash
produced, the Challan shall be signed by the Tax Superintendent and a receipt for the amount
shall be given to the Tax Collector in a receipt book in Form T.S. 9 to be kept in his possession.

(4) The Tax Muharrir in charge of the Tax Demand and Collection Register (Form T.S. 5), after
checking the realizations shown in the Challan (Form T.S. 8) with the counterfoils of the bills
paid, and having initialled the counterfoils, shall post each item from the Challan into its proper
place in the register and shall then file the Challans in a guard file to be kept for the purposes of
audit.

(5) After the realisations have been posted in the Tax Demand and Collection Register (Form T.S.
5), columns 5 to 8 of the Bill-book (Form T.S. 7) shall be posted by or under the direct
supervision of the Tax Superintendent, the letter 'P' and the date of payment being entered in
column 5 against each bill paid, while if the Tax Superintendent decides for any reason not to re-
issue a bill returned unpaid the letter 'C' and the date of cancellation shall be entered in column
5 and the bill and its counterfoil shall be enfaced 'cancelled' over the signature of the Tax
Superintendent, who shall take such steps with regard to the cancellation as may be within his
power or report the matter to the committee for orders the action taken in either case being
noted in column 8 of the Bill Book (Form T.S. 7); in the case of bills retained by assessees for
direct payment at the office of the Tax Superintendent, the letter 'D' and the date of
presentation of the bill shall be entered in column 5 of the bill-book.

(6) At the end of each month the outstanding bills in each Bill-book shall be verified with the
bills actually in the hands of the Tax Collector and a certificate of verification shall be signed by
the Tax Superintendent on the Bill book of each Tax Collector in the following form :-
"Certified that out of bills for sum amounting to Rs. ___________________, issued to Tax
Collector ____________________, bills for Rs. ____________________ have been paid or
cancelled, or retained by assessees and bills for the balance, Rs. ____________, remain with the
Tax Collector and have been verified by me."

(7) When the period on account of which the tax was due has expired, each Bill-book shall be
formally closed and balanced over the signature of the Tax Superintendent, the outstanding bills
being verified with those in the hands of the Tax Collector and brought forward in detail on a
fresh page.

VII.10. Direct payment of bills for taxes at the office of the Tax Superintendent. - An
assessee wishing to make payment of bill in Form T.S. 6 shall take or send by hand or by post the
amount of the bill in money or by cheque to the office of the Tax Superintendent and a receipt
in [Form G.8] shall be issued for the amount received and the receipt shall be posted in the Tax
Demand and Collection Register (Form T.S. 5) ; and if the bill is one which was presented by a
Tax Collector and retained by the assessee under the provisions of sub-rule (2) of rule VII-9, a
note shall subsequently be made in red ink against the relevant entry in the [Bill-book] of Tax
Collector concerned.

VII.11. Progressive totals to be noted on counterfoils of bills. - Separate books of bills in Form
T.S. 6 shall be used in respect of each tax in force and daily progressive totals of amounts
received shall be filled in on the counterfoils of the forms as issued.

VII.12. Record of recovery of arrears of tax through Collector or Magistrate. - When the
arrears of any tax are recovered through the Collector or a magistrate under the provisions of
section 80 or section 81 of the Act, a remark to his effect shall be made in column 49 of the Tax
Demand and Collection Register (Form T.S. 5) and the amount of any notice, fee or costs
recovered shall be shown as a 'Deduct' entry against the cost of the collection of the tax under
the provisions of rule III.3.

VII.13. Proving of demand and Collection Register. - At the end of each year the Demand and
Collection Register (Form T.S. 5) shall be proved by deducting the totals of columns 44 and 46
from the total of column 6, when the balance should agree with the total of column 47.

[VII.14. Tax Collection Progress Statement to be submitted every quarter. - (1) To enable
the committee to watch the progress of collections of taxes, Tax Collection Progress Statements
in Form T.S. 10, T.S. 10(A), T.S. 10(B), shall be laid before the committee once a quarter [and, if
the Deputy Commissioner so directs, a copy of the statement shall be forwarded to him].

The forms in T.S. 10(A) shall be prepared separately for each year for which unrecovered
demands are outstanding.

These statements need not be prepared for octroi and terminal tax demands which are
ordinarily recovered on the spot. A brief statement in form T.S. 10(B), however, shall be
prepared and laid before the Committee.

Similar progress statements shall be prepared and laid before the committee for all other
municipal dues, such as rents of buildings, lands, etc., licence fees rents and fees, for the
occupation of public lands under the bye-laws dealing with such occupations demands for the
services rendered by municipal agency including the sale of sullage water, market rents, charges
for the sale of water, charges for the demolition of dangerous and unsanctioned buildings,
education, medical and veterinary fees and demands in connection with municipal gardens and
arboriculture :

Provided that if any arrears demand is due from any member or official of the committee, the
name of such personnel shall be shown separately in the statement and the amount due from
such person shall also be shown against his name :]

[Provided further that when an arrear has been outstanding for more than three months the
Secretary of the Committee shall proceed against the defaulter under section 95(1) of the Act.]

(2) In column 1 of the [statement] the total of column 6 of the Tax Demand and Collection
Register (Form T.S. 5), shall be entered in column 2 no entry shall be made in the part of the
statement relating to arrears but in the part of the statement relating to the current demand
the portion of the annual demand which is due up to the date of the statement shall be entered;
in columns 3 and 5 shall be entered the total amounts collected or remitted, respectively, since
the date of the last statement and in columns 4 and 6 the totals of columns 44 and 46,
respectively, of the Tax Demand and Collection Register; the entry in column 8 should
correspond with the entry in column 47 of the Tax Demand and Collection Register.

VII.15. Collection of tolls. - (1) In a municipality in which a tax is imposed in the form of a toll
on animals or vehicles of a particular class or classes entering municipal limits, if octroi or a
terminal tax on goods imported into or exported from the municipality by road has been
imposed, the toll shall be collected at the octroi or a terminal tax barrier by the octroi or
terminal tax staff, or if octroi or terminal tax on such goods has not been imposed, the
committee shall establish toll-bars at such places as it may deem best suited to intercept such
animals or vehicles when entering the municipality, and may appoint such Toll Inspectors and
Toll Maharrirs as may be necessary for the collection of the toll.

(2) A copy, in English and Vernacular, of the sanctioned schedule of toll rates signed by the
Secretary, shall be posted in a conspicuous place at each octroi or terminal tax barrier of toll-
bar, as the case may be.

(3) The person collecting The Toll shall fill up a receipt in duplicate by carbon process in Form
T.S. 11, together with the coupon appended thereto and shall demand the amount of toll from
the person-in-charge of the goods, and on receipt of the amount shall forthwith drop it into the
cash box and shall hand over the receipt with coupon attached to such person. Due regard to
the rules for the collection of Octroi or terminal tax on goods imported for consumption within
octroi limits shall also be given for the collection of the toll.

[VII.16. Octroi tax on animals. - The rules contained in Chapter V of the Code will
apply mutatis mutandis to a tax imposed in a Municipality on animals in the form of Octroi (with
or without refunds.]

CHAPTER VIII

Water Rate

VIII.1. Forms of water-rate chargeable. - Water-rates chargeable under the provisions of

section 109 of the Act may take the form of lump sum charges varying with the number of taps
or the size of the ferrule or both and payable in advance or charges varying with the amount of
water consumed, provided that in a municipality in which water tax has been imposed a water-
rate only in the form of a charge varying with the amount of water consumed shall be charged.

VIII.2. Register of water connections to be maintained. - In a municipality in which a water-

rate is charged under the provision of section 109 of the Act, a Register of Water -connections
shall be maintained in Form W.1, in the officer of the Secretary or, if the committee so directs,
of the Tax Superintendent, the information necessary for the posting of the Register being
supplied by the Water-work Engineer as soon as a connection is sanctioned and opened.

VIII.3. Water-rate Demand and Collection Register. - From the Register of Water
connections (Form W.1) shall be posted in columns 1 to 12 of a Water-rate Demand and
Collection Register in Form W.2. provided that when the water-rate takes the form of a charge
varying with the amount of water consumed the entries in column 6-8 shall be made on receipt
each month from the Water Work Engineer of the meter-reading of connections.

VIII.4. Miscellaneous demand in connection with water-supply to be entered in Water-rate

Demand and Collection Register. - Miscellaneous demands in connection with the supply of
water, such as demands on account of the rent of meters, fees for opening connections, on the
cost of fittings, repairs and renewals shall also be entered in columns 13 to 16 of the water-rate
Demand and Collection Register (Form W.2).

VIII.5. Issue of bills for water-rate etc., and collection of dues. - (1) Bills for the collection of
water-rates and miscellaneous demands and connected with the water-supply shall be issued in
Form W.3 and payment thereof may be made either directly at the office from which they are
issued or, in large municipalities where a special staff is entertained for the collection of such
dues, to member of such staff :

Provided that in Municipalities which have introduced the National Cash Register for collection
of municipal dues the form of bill to be used will be approved by the Examiner, Local Funds
Accounts, Punjab under rule 1.6 of the Code.

(3) Rule VII.9 to VII.14 governing the collection of taxes shall apply mutatis mutandis to the
collection of water-rate and other demands in connection with water-supply.

[VII.5A. In Municipal Committee where water-rate is levied according to the actual

consumption of water, the reading of the meter provided in the consumers' premises shall be
recorded in Form W.2-A.]

VIII.6. Plan of mains and pipes to be maintained. - In a municipality in which there is a piped
water-supply with connections in private houses, the committee shall cause to be prepared and
to be kept up to date a plan showing the location and size of all mains and pipes and the dates
on which they were laid.

CHAPTER IX

Licenses

IX.1. Appointment and duties of Licensing Officer and Licensing Inspectors. - (1) For the
purpose of the rules in this chapter the committee shall, in all cases in which provision is made
not for the appointment of a Licensing Officer in by-laws regulating the grant of licenses,
appoint one of its members or some other suitable person to be Licensing Officer and may
appoint such License Inspectors and License Muharrirs as may be necessary.
(2) A Licensing Officer, in addition to any other duties imposed upon him by these rules, shall be
responsible generally for the issue of licenses and for the proper discharge of their duties by
License Inspectors, and License Muharrirs.

(3) License Inspectors, in addition to any other duties, imposed upon them by these rules, shall
be responsible for reporting to the Licensing Officer all cases in which persons resident in their
respective circles have failed to apply for or to obtain licenses required to be taken out.

IX.2. Application and issue of licenses. - (1) Every person required to take out a license under
the provisions of the Act or of any by-laws made thereunder or desiring to take out a license
issuable under any such provisions, shall apply for a license to the Licensing Officer.

(2) On receipt of an application under sub-rule (1) the Licensing Officer shall cause the details of
the application to be entered in columns 1 to 4 of a Register of License Applications to be
maintained in Form L. 1, and if he is himself empowered to dispose of the application, shall,
after such enquiry, if any, as may be necessary, record his order sanctioning or refusing the issue
of a license in columns 8 and 9 of the Register, or if he is not so empowered, shall submit the
application to the authority so empowered, and when the application has been disposed of by
such authority shall record the order of such authority in columns 8 and 9 of the Register.

(3) When any application for a license is refused the reasons for such refusal shall be
communicated to the applicant and shall be recorded briefly in column 9 of the Register of
License Applications (Form L.1).

(4) When an application for a license has been sanctioned, the applicant shall be called upon to
pay the prescribed fee, if any, and on receipt of the amount of the fee, if any, and not
otherwise, the Licensing Officer shall cause a licence to be issued in the prescribed form and
shall enter the details of the license in a Register of Licenses to be maintained in Form L.2,
separate parts or volumes of which shall be set apart for each kind of license and so arranged
that the names of licensees shall be grouped alphabetically, provided that if an applicant fails to
pay the prescribed fee within one month from the date on which intimation is sent to him that
his application has been sanctioned no license shall be issued to him except in pursuance of a
fresh application and his original application shall be deemed to have been refused.

IX.3. General provision as to period, forms, renewals, etc. of licenses. - (1) No license shall be
issued for a period of more than one year or less than one month, but subject to these
limitations licenses shall be issued for such periods as the applicants may desire, provided that
in no case shall a license be issued which will be valid beyond the thirty-first day of March next
following the date of issue or such other date as the committee may, by by-law, appoint in
regard to any class of licenses.
[Note. - The restriction laid down in the above rule will not apply to licenses issued in March for the next financial year or in
the month following which fresh licensing year commences.]

(2) Every license issued shall, unless any other form is prescribed by by-laws regulating the grant
of the license, be in Form L.3. or L.4. according to the nature of the license, and on the reverse
of every license shall be printed the conditions on which it is granted, and such conditions shall
contain a provision that the license may, at any time, after due notice has been given to the
licensee, be cancelled for the breach of any condition on which it was granted, and that in the
event of such cancellation the licensee shall not be entitled to any refund of any portion of the
license fee.
(3) No license shall be transferable, and on the transfer of occupation, possession, or ownership
as the case may be, of any premises, vehicle or animal in respect of which a license has been
issued, the licensee shall report such transfer and shall surrender his license for cancellation,
and the transferee shall apply for a fresh license, provided that when a license is surrendered for
cancellation under this sub-rule, the committee shall refund to the licensee such portion of the
fee as may be deemed to cover the unexpired period of the license.

(4) No license, except a license issued under [section 128 of the Haryana Municipal Act, 1973],
shall be re-issued when its term has expired or be endorsed for a continuance of the term, but
the licensee shall on the expiry of the period for which the license was granted, if he still
requires a license, surrender his old license and apply for a new license, and the surrendered
license shall be stamped or endorsed as cancelled.

IX.4. Check of licenses. - At the end of each month the Licensing Officer shall examine the
Register of Licenses (Form L.2) and shall take such action as may be within his power with regard
to every person whose license may have expired up to date, and if after enquiry it appears that
any person whose license has expired or any other person requires a license for which he has
not applied or after his application has been refused is guilty of a breach or any provision of the
Act or of any bye-laws made thereunder by reason of not having a license he shall report the
case to the authority empowered to sanction prosecution in such case.

CHAPTER X

Pounds

X.1. Pound Registers to be maintained. - (1) On the admission of an animal to a pound, the
pound-keeper shall fill up columns 1 to 8 of a Pound Register to be maintained in Form P.1
taking the signature or thumb-mark of the person impounding the animal in column 7, and shall
then issue a receipt for the impounded animal in Form P.2.

(2) If more than one animal is admitted at a time, each animal shall be entered on a separate
line in the Pound Register (Form P.1).

X.2. Procedure on release of animals from pound. - (1) When the owner of an impounded
animal or his agent appears to demand the release of his animal, the pound-keeper shall make
the necessary entries in columns 9 to 17 of the Pound Register (Form P.1) and fill up a Release
Pass with its counterfoil in Form P.3 : he shall then demand the fines and charges due on
account of the impounded animal and on their receipt shall take the signature or thumb-mark of
the owner or his agent in column 20 of the Pound Register and the signature or thumb-mark of
some person who can identify the person claiming the animal as the owner thereof or his agent
in column 21, and shall then release the impounded animal.

(2) The progressive total of the sums received shall be entered at the foot of each counterfoil of
the [Release Passes] at the time when the counterfoil is filled up and the pass issued, and the
entering of the totals shall not be deferred till the end of the day.

X.3. Sales to be conducted under supervision. - When a pound is directly managed by the
committee every sale of impounded animals shall be conducted under the direct supervision of
a member or of the Secretary or such other responsible officer as the committee may direct or
with the consent of the [District Magistrate, or Sub-Divisional Magistrate] within his jurisdiction,
as the case may be, or a responsible Government official.
X.4. Pound-keeper to attend sale unless exempted. - The pound-keeper shall attend every sale
of impounded animals unless exempt from such attendance by general or special order of the
committee on the ground that his absence would prejudice his other duties : he shall take with
him his [Pound Register] and his counterfoil book of Receipts for the Purchasers of Impounded
Animals sold to be kept in Form P.4.

[X.5. Sale-proceeds to be remitted to the treasury and memorandum to be sent to pound-

keeper if not present at sale. - When under the provisions of rule X. 4 the pound-keeper does
not attend a sale the officer conducting the sale shall give to the purchaser of impounded
animals a receipt in Form P.4 and shall remit to the treasury with a challan in Form G. 7 the
amount of the sale-proceeds, if any, and shall send to the pound-keeper -

(a) the two foils of the challan received back from the treasury duly signed to be dealt
with as provided for in rule X. 10 and

(b) a memorandum showing -

(i) the number and description of animals sold;

(ii) the date on which sold;

(iii) the name and address of the purchaser;

(iv) the amount for which sold; and

(v) the number of animals, if any, returned unsold :

Provided that if the animals sold have been impounded otherwise than under Chapter III of the
Cattle Trespass Act, 1871, the officer conducting the sale shall not remit the amount in respect
of such animals to the treasury but shall send it to the pound-keeper, together with the
memorandum specified in clause (b) of this rule.]

[X.6. Receipt to be issued to Purchaser of animals. - When impounded animals are sold the
pound-keeper shall, if he has attended the sale, enter the details of the sale in the pound
register (Form P.1) and give to the purchaser of such animals a receipt in Form P.4.]

X.7. Memorandum showing disposal of proceeds of sale. - When impounded animals have
been sold under the authority of section 14 or section 16 of the Cattle Trespass Act, 1871, the
account to be delivered to the owner, as required by the latter section, shall be drawn up by the
pound-keeper in the form of a memorandum in Form P.5, and the receipt prescribed by the final
clause of that section shall be taken in the last column of the counterfoil.

X.8. Net sale proceeds to be sent to court. - When animals impounded otherwise than under
Chapter III of the Cattle Trespass Act, 1871, have been sold, the pound-keeper shall fill up a
memorandum in the manner prescribed in rule X. 7; but the sale-proceeds, after deduction of
the fines leviable, the expenses of feeding and watering and the expenses of sale, if any, shall be
made over to the court or officer under whose authority the sale was ordered, the words
'authorizing officer or his agent' being substituted for the words 'owner' wherever the latter
occurs in the memorandum in Form P.5.

[X.9. Sums received on behalf of committee to be entered on counter-foils of release passes. -

The pound-keeper shall, immediately on receipt, add to the last progressive total entered in the
counterfoil of release pass (Form P.3) all sums received by him on behalf of the committee on
account of impounded cattle sold and also the amounts, remitted direct to the treasury by the
officer conducting the sale in accordance with the provisions of rule X.5.

Explanation. - Charges for feeding and watering appropriated by the pound-keeper, the
"balance of the purchase money" under section 16 of the Cattle Trespass Act, and the net sale-
proceeds under rule X. 8 are not received on behalf of the committee.
Note (i). - See section 17 of the Cattle Trespass Act, 1871.

Note (ii). - The balance of the purchase money should be noted separately in red ink below the progressive total and
carried forward till the collections are remitted to the treasury.]

X.10. Remittance of pound collections to treasury. - (1) At such times as may by fixed by the
committee, but at least once a week, the pound-keeper shall remit his collections to the
Treasury, with a challan in Form G.7 : of the two foils of the challan received back from the
Treasury duty signed, one shall be returned to the pound-keeper, who shall paste it in
his [Release Pass-Book] as evidence of the remittance having been made, and the other shall be
sent to the Secretary to enable him to enter the amount to his General Cash book.

(2) The challan submitted under sub-rule (1) shall specify -

(a) net sale-proceeds of unclaimed cattle;

(b) other receipts.

[(3) The collections shall be accounted for by the Committee in its monthly account (Form G.4)
under head "Suspense" and credited to the provincial revenues under head [0875-
Miscellaneous/General Services/other receipts/Miscellaneous receipts], at the expiry of three
months after deducting the amount paid, if any, to the owner of impounded cattle under
section 17 of the Cattle Trespass Act, 1871.]

Explanation. - The amount shown under head (a) shall be the sums entered in column 18, Form
P.1 as 'Surplus credited to the account'.

X.11. Claims for sale-proceeds of unclaimed animals. - (1) When a claim is preferred under
section 17 of the Cattle Trespass Act, 1871, to any sum credited as the net sale-proceeds of
unclaimed cattle, the original credit shall be traced in the [Pound Register] and if on
investigation, the claim is established amount repayable shall be paid under the written orders
of the President or of a Vice-President, and the payment shall be brought to account direct in
the General Cash book (Form G. 2); the fact of the payment, and the number and date of the
payment voucher shall be noted in the remarks column of the Pound Register against the entry
of the original credit.

[(2) No claim for refund of the sale-proceeds or part thereof in respect of unclaimed animals
shall be entertained if it is not preferred within six months from the date of deposit of the sale
proceeds.]

(3) When an investigation into a claim cannot be undertaken by the committee, it may at the
request of the committee be made through the district magistrate.
X.12. Feed and watering of animals. - (1) The committee may give an advance, not exceeding
ten rupees, to the pound-keeper for the purpose of feeding impounding animals.

(2) The charges for feeding and watering different classes of animals shall be fixed by the
committee, from time to time, at such rates that the receipts from this source do not exceed the
actual cost of feeding and watering, provided that half the daily charge for feeding shall be
recovered when an animal has been in the pound for less than eight hours.

[Provided further that no feeding charges shall be recovered from the owner of an animal which
is impounded after the hour fixed for feeding and is released before the next.]

X.13. Inspection of pounds. - A pound directly managed by the committee shall be open to
inspection by any member of the committee or of the District or Audit Staff, and so far as
possible it shall be inspected once a quarter and the results of the inspection shall be recorded
in an inspection book to be kept up at the pound, and any irregularity in its accounts shall at
once be brought to the notice of the President [or the Executive Officer where such an officer
has been appointed.]

X.14. Pounds Ledger to be maintained. - A Pounds Ledger shall be maintained in the accounts
office of the committee in Form P.6, a separate page being assigned to each pound, in which
shall be shown all expenditure on each pound and all income received from each pound, at the
end of the shown all year a statement shall be compiled by the Secretary and laid before the
committee showing the net loss or gain to the committee during the year from each pound.

CHAPTER XI

Other Revenue

XI.1. Register of immovable property to be maintained. - (1) [The Committee shall maintain
separate Registers of Immovable Property in Form R.I./Form R.I.B., in which shall be entered
details of all immovable property/all the trees within the jurisdiction, of the Committee
(excluding forest areas attaining a girth of about one feet six inches, two volumes of the Register
in Form R.I being maintained, in volume 1 of which shall be entered all property vested in or
owned or leased by the Committee, and in volume II all nazul or other property of Government
placed under the management of the Committee.]

(2) In volume I of the register [property] leased by the committee shall be entered separately
from property vested in or owned by the committee.

(3) In volume II of the register the [property] shall be entered under one or other of the
headings -

(a) lands with buildings attached,

(b) building sites, or

(c) other plots,

and each piece of property shall be entered on a separate page with a plan of the property on
the opposite page.
(4) The committee shall periodically and not less than once a year cause the Register of
Immovable Property to be examined and the examining officer or member shall certify the
record to be correct; volume II of the register shall also be compared annually with
the nazul register maintained by the Deputy Commissioner.

XI.1A. Register of encroachment on immovable property to be maintained. - The committee

shall maintain a Register of Encroachment on immovable property in Form R.I-A in which shall
be entered the details of all encroachments which may come or are brought to the notice of the
committee. Two volumes of the register shall be maintained, in volume I shall be entered the
details of encroachments on immovable property vested in or owned or leased by the
committee and in volume II those on all nazul and other property of Government placed under
the management of the committee.

XI.2. Appointment and duties of Lands Officer, Rent Inspectors, etc. - (1) The committee
shall employ a Lands Officer and such number of Rent Inspectors, Rent Muharrirs and Rent
Collectors as may be necessary for the collection of rents of immovable property of the
committee let on lease, provided that nothing in this rule shall be deemed to prevent the
committee from appointing to discharge the duties of Lands Officer, the Secretary, Assistant
Secretary, Tax Superintendent or Licensing Officer, or to discharge the duties of Rent Inspectors,
Rent Muharrirs or Rent Collectors and other employees of the committee except Sanitary
Inspectors.

(2) The Lands Officer, in addition to any other duties imposed upon him by these rules, shall be
responsible generally for the collection in accordance with these rules of all rents, fees and
other dues in respect of immovable property of the committee and for the proper discharge of
their duties by Rent Inspectors, Rent Muharrirs and Rent Collectors, and further it shall be his
duty on each occasion when the lease of any property is about to expire to submit a report to
the committee reviewing the rent hitherto charged with a view to its enhancement if conditions
so permit or, if it appears to him that such property might more profitably be sold or otherwise
put to more advantageous use, making recommendations accordingly.

(3) The Rent Inspectors, in addition to any other duties imposed upon them by these rules, shall
be responsible for the proper discharge of their duties by the Rent Muharrirs and Rent
Collectors attached to their respective circles, and it shall be their duty to see that no
immovable property of the committee is occupied by any person except with the permission of
the committee, and that the rents, if any, charged by the committee for the occupation of such
property are promptly realized, and to report to the Lands Officer all cases in which any such
property within their respective circles is occupied without authority.

XI.3. Rent Demand and Collection Register. - (1) The Lands Officer shall maintain a Rent
Demand and Collection Register in Form 2 in which shall be entered details of every lease of any
property entered in the Register of Immovable Property (Form R.1) as soon as it is sanctioned by
the committee.

(2) At the beginning of each year fresh Rent Demand and Collection Register (Form R.2) shall be
opened in which shall first be entered the names of all lessees against whom arrears are shown
as due on account of the previous year or years in column 74 of the Register of the previous
year together with the amount of such arrears, after which the entries relating to the demand of
the current year shall be posted, the word "arrears" being written in red ink in the "Remarks"
column against the name of any person in the list of the current year whose name is also
entered in the list of persons from whom arrears are due.

(3) When in accordance with a resolution of the committee the rate of rent in any case is altered
the necessary correction shall be made in red ink in the Rent Demand and Collection Register
(Form R.2), a note being made in the "Remarks" column giving the authority for the correction,
and when any rent is remitted by the committee, no correction shall be made in the register,
but the authority for the remission and the amount of the rent remitted shall be entered in the
appropriate places in columns 45 and 46 of the register.

XI.4. Bills for, and collection of rents. - (1) Bills for the collection of rents of immovable
property shall be issued in Form R.3, any payment thereof may be made either directly at the
office from which they are issued, or, in large municipalities where a special staff is entertained
for the collection of such dues, to a member of such staff.

(2) Rules VII.9 to VII.14 governing the collection of taxes shall apply mutatis mutandis to the
collection of rents.

XI.5. Sale of immovable property. - When any property entered in the Register of Immovable
Property (Form R.1) is sold the necessary entry shall be made in column 18 of the register, and if
the sale money is realized on the payment, the amount shall be brought to account direct in the
General Cash Book (Form G.2), but if the sale money is to be paid by instalments, the
transaction shall be entered in a separate portion of the Rent Demand and Collection Register
(Form R.2), the instalments being treated as rent due at stated intervals.
Note. - The following rules, published with Punjab Government Notification No. 13981, dated 16th July, 1918, 21286, dated
26th July, 1926, and 30031, dated 23rd November, 1927, govern the alienation of municipal properties :-

1. No land, the property of a municipal committee, shall be alienated permanently or for a term exceeding ten years except
with the previous sanction of the Commissioner of the Division or in exercise of powers specially conferred upon a
committee by these rules or any other authority of the State Government.

2. (1) Every municipal committee in charge of Nazul properties of Government shall maintain a register in Form 34
prescribed by rule 188 of the Punjab Municipal Account Code (now Form R.1) prescribed by rule XI.1 of the Municipal
Account Code, 1930), and if the amount of such properties is large shall also maintain a large scale map with index showing
the position of such properties.

(2) No municipal committee shall lease Nazul properties of Government in its charge for a term exceeding five years
without the previous sanction of the Deputy Commissioner or for a term exceeding ten years without the previous sanction
of the Commissioner.

(3) No municipal committee shall sell Nazul properties of Government in its charge without the previous sanction of
Government. Application for such sanction should be submitted to Government through the Deputy Commissioner and
Commissioner in the form appended to this rule, accompanied when necessary by a rough plan. When the sale has been
completed the same statement should be re-submitted to Government, for confirmation of the sale, with the result of the
sale detailed on the reverse, provided that if the property is sold by auction and the price realized is not less than 75 per
cent of the price accepted by Government when the proposals for sale were submitted for sanction, the sale may be
confirmed by the Commissioner.

3. (Relates to staging bungalows).

4. (1) Every committee to which any property of Government has been transferred for management, shall keep a pro-
forma account of the income derived from such property including any grant received from Government in respect thereof
and of the expenditure thereon, and shall be responsible for the annual repairs required for such property and for special
repairs to the amount of the balance, if any, of income over expenditure since the property was transferred as shown in
the proforma account.
(2) No committee to whom any property of Government has been transferred for management shall cause any repairs or
alterations to such property to be carried out in a style differing from that of the original work without the consent of the
State Government in the Public Works Department.

(3) No committee in whom any land of Government vests or to whom any land of Government has been transferred for
management shall cause or suffer any buildings of a permanent nature to be construed on such land, or shall cause or
suffer such land to be diverted permanently from its existing use, without the consent of the State Government.

STATEMENT OF NAZUL PROPERTY PROPOSED TO BE SOLD IN MUNICIPALITY

Serial No. of Description, Present Estimated Reasons for Special Remarks and Rem
the details, and income, if present which sale conditions, if reserve price rese
property in situation of the any, from value of the is proposed any, of the proposed by the prop
the Nazul property and how the property sale Deputy Com
register and when it property. Commissioner
became Nazul
[Note]

The restriction laid down in the above rule will not apply to a tahbazari ticket issued in March
for the next financial year.

Reverse

Statement of Sale of Nazul Property Forwarded to the Commissioner_______for Confirmation

State Government

Serial No. of Name of property Hour, date and Names Amounts Remarks of the Remarks or Or
the property to correspond with place of the sale of of bids Deputy orders of the Go
in the Nazul the name given in and name of bidders Commissioner Commissioner
register column 2 on the officer who
reverse conducted the
sale

XI.6. Plots for temporary occupation to be scheduled and dues collected by Tehbazari
tickets. - The Lands Officer shall from time to time prepare a schedule showing the plots of land
available for temporary occupation by shopkeepers, pedlars and other such persons and the
rates at which such plots and portions of the public streets may be [allotted in accordance with
the rules or bye-laws framed under the Act] and shall cause copies of such schedule to be
posted at the office of the committee and at conspicuous places throughout the municipality
and notwithstanding anything contained in rule XI.3 or XI.4 the rent, fees or other dues payable
in respect of the occupation of any such plot or of a portion of any public street shall be
collected by means of a tehbazari ticket in Form R.4.

XI.7. Rent Collectors to see the Tehbazari tickets are taken out. - Tehbazari tickets shall
ordinarily be valid for the day of issue only, and it shall be the duty of the Rent Collectors,
appointed under the provisions of rule XI.2 constantly to patrol the municipality and to see that
every person in occupation of any plot scheduled under the provisions of rule XI.6 or of any
portion of a public street takes out a ticket, provided that if any person wishes to occupy any
such plot or portion of a public street for a week or longer period he may, unless such
occupation is not permitted by the committee, take out a ticket for a week or such longer period
as may desire, provided further that in no case shall a ticket be issued which will be valid beyond
the thirty-first day of March following its issue.
XI.8. Collection of Tehbazari dues. - (1) Every Rent Collector shall be furnished with a book of
Tehbazari Tickets in form R. 4. On receipt of the amount due on account of Tehbazari fee, he
shall issue the ticket and blank coupon attached after filling up the counterfoil and after
entering, at the foot thereof, the progressive total of amount received during the day.

(2) If a ticket is taken out for a period of a week or more the Rent Collector shall before the issue
thereof make the necessary entries in a Tehbazari Register to be maintained by him in Form R.5,
noting carefully in column 6 of the register the date of the expiry of the ticket and leaving
sufficient space in the case of each person to provide for the entry of future tickets in case they
are taken out after the expiry of the current ticket.

(3) Every Rent Collector shall examine his [Tehbazari Register] each morning and take steps to
see that a fresh [ticket] is forthwith taken out in place of one that has expired or that the plot of
land or portion of a public street in respect of which it was issued is vacated.

[(4) Every Rent Collector shall pay his collections daily to the Land Officer, if there is any, or at
the municipal office where the progressive total of all the counterfoils of receipt (Form R.4) in
respect of the collections of the day shall be checked with the cash produced; the last
progressive total shall be signed by the Lands Officer or the Secretary, as the case may be, and a
receipt for the amount shall be given in a receipt book in form T.S. 9 to be kept in his
possession.]

XI.9. Lands Officer and Rent Inspectors to check the work of Rent Collectors. - It shall be
the duty of the Rent Inspectors, if any, appointed under the provisions of rule XI.2 to check the
work of Rent Collectors by making periodical rounds in the course of which they shall demand to
examine the Tehbazari tickets of persons found in occupation of scheduled plots of land or
portions of public streets, and in such cases after such examination as they may think necessary
they shall fill up and tear off the coupons attached to the tickets and keep them for comparison
with the counterfoils in the books of the Rent Collectors, and after such comparison shall [bring
them to the notice of the Lands Officer or the Secretary as the case may be who shall retain
them till the subsequent audit of the accounts of the committee and may order them to be
destroyed thereafter] they shall also see that Rent Collectors comply with the provisions of rule
XI.8 as to the filling up of progressive totals on the counterfoils of tickets as issued and as to the
maintenance and daily examination of the [Tehbazari Register].

XI.10. Fees at Fairs. - (1) When a committee collects fees for permission to set up shops or
stalls at a fair, the fees shall be collected as if they were Tehbazari dues.

[(2) At conspicuous places at every fair where fees are collected, tables of the sanctioned rates
shall be posted in English and Vernacular, together with notices requesting the public to
demand a receipt from the official in charge for every payment made, in respect of the animal
or animals sold or where a committee has so provided under [section 199 of the Haryana
Municipal Act, 1973], for animals brought for sale.

Such fees shall be collected by means of receipts in Form R.6 which shall be written with an
indelible pencil and prepared in triplicate by means of carbon paper, the second carbon copy
being retained and the original along with the first carbon copy detached and handed over to
the payer.

The payer, on demand by an Inspector or any other person authorised in this behalf, shall
produce for inspection the original and the carbon copy of the receipt granted to him. Such
officer shall then verify the entries in the original receipt with those in the carbon copy as well
as the number of cattle, etc., and on satisfaction shall sign the original receipt before returning it
to the payer.

The carbon copy which shall be retained by the Inspecting Officer, shall, before it is finally filed,
be also checked with the office copy of the receipt in Form R.6.]

XI.11. Slaughter-house fees. - (1) The fees leviable at a municipal slaughter-house shall be
entered in a schedule of which a copy shall be posted at the entrance to the slaughter house
premises.

(2) The committee shall appoint a muharrir or other officer for the collection of such fees who
shall be provided with a locked cash-box of which the key shall remain with the Secretary or
some other responsible officer as the committee may direct, and the muharrir or other officer
so appointed shall immediately and without reservation drop into his cash-box all fees received;
and when issuing tickets shall enter on the counterfoil of each ticket issued the progressive total
of fees received during the day.

(3) If such fees are levied at so much per head on the animals brought for slaughter they shall be
collected by means of tickets in Form R.7 and if they are levied from each butcher using the
slaughter-house as payment for use of the slaughter-house they shall be collected by means of
tickets in Form R.4 with the heading changed to 'Slaughter-house Ticket', and tickets in Form
Rule 7 shall be available only for the animals specified therein and tickets in Form R.4 shall not
be transferable and tickets in both forms shall be valid only for the day of issue and shall not be
renewable.

(4) At the end of the day the muharrir or other officer appointed for the collection of slaughter-
house fees shall send his cash-box to the Secretary or other officer by whom the key is retained
in accordance with the directions of the committee, and the Secretary or such other officer shall
deal with the cash as nearly as may be in the manner prescribed in sub-rule (4) of rule XI. 8.

(5) The Secretary or other inspecting officer appointed by the committee in this behalf shall
check the work of the muharrir or other officer appointed for the collection of fees by
demanding from such butchers, he may think fit the tickets in Form R.7 or R.4 issued to them
and such butchers shall produce such tickets on such demand, and after such examination as he
may think necessary, the inspecting officer shall fill up the coupons and detach them for the
purpose of comparison with the counterfoils in the book of tickets and shall return the tickets to
the butchers after initialling them and after the comparison has been made shall drop the
coupons in the cash-box of the muharrir or other officer.

XI.12. Garden Accounts. - (1) In a municipality in which the committee possesses a garden
from which an annual normal income of five hundred rupees or more is realised by the sale of
garden produce to private customers, the officer in charge of the garden shall maintain a
Garden Order Book in Form R.8 in two parts, in the first of which shall be entered all standing
orders for garden produce from regular customers and in the second all casual orders received
from time to time and not accompanied by the price of the produce ordered and when any
produce is supplied which is not paid for in advance or at the time an entry shall be made in the
account of the purchaser in a Garden Ledger to be maintained in Form R.9 and such ledger shall
be closed and accounts rendered once a month.
(2) The officer in charge of the garden shall maintain a Garden Cash Book in Form R.10 in which
shall be entered as it occurs every payment received for produce supplied and the amounts so
received shall at such intervals as the committee may determine be remitted to the municipal
office in accordance with the provisions of rule IV.5 and shall not be used for expenditure, for
which the officer in charge of the garden shall be given a Permanent Advance from which
payments shall be made in accordance with the provisions of rules XI.5 and XII.6.

XI.13. Fines. - (1) Courts realizing [arrears of municipal taxes], are required to forward to the
committee a monthly statement in Form Rule 11 but the amount of such [arrears shall be
brought to account in the General Cash Book (Form G.2)] direct from the Treasury Pass Book
before the General Cash Book is closed for the month even if no statement in Form Rule 11 has
been received in respect thereof, and when the statement is received it shall be checked with
the Pass Book and the General Cash Book.

(2) [ - ]

XI.14. Collection of ferry-tolls, saraj dues etc. - [(1) If a committee collects ferry-tolls or fees
for the use of a parao sarai rest house or other such institution direct, such tolls or fees shall be
collected by means of tickets in Form R.4 with the heading altered appropriately in each case,
and the provisions of rule XI. 8 shall apply mutatis mutandis to the collection of such dues.]

[(2) The collections from farriers shall be accounted for and credited to the provincial revenues
in the manner prescribed in rule X.10(3).]

XI.15. Miscellaneous demands. - For demands not otherwise provided for in these rules, the
Secretary shall maintain a Miscellaneous Demand and Collection Register in Form R. 12 and the
provisions of rules XI.3 and VII.9 to VII.14 shall apply mutatis murandis to the maintenance of
such register and the collection of such demands.

XI.16. Saving of committee's right to farm dues. - Nothing contained in these rules shall be
deemed to prevent any committee from leasing to any person the right to collect any rents, fees
or other dues of the committee, and if in any case such a lease is given it shall be dealt with as a
lease of immovable property in accordance with the provisions of these rules.

CHAPTER XII

Payments

XII.1. No payment to be made out of receipts and cheques to be drawn only for immediate
disbursement. - No payment shall be made from the municipal fund except in the manner
provided in these rules and in particular no payment shall be made out of cash received for
credit to the municipal fund, and no cheques shall be drawn except for immediate disbursement
or to recoup a permanent advance.

[XII.2. No payment to be made except on the written order of the competent authority. -
Except in the cases provided for in rule XII.5, no payment shall be made except on written
orders of the Executive Officer and in the event of supersession of any Municipal Committee the
Administrator or the Executive Officer as may be authorised by the Administrator. The Executive
Officer shall not, however, sign pay order on the Travelling Allowance Bills unless they are
countersigned by the President under rule 11.10(3) of the Municipal Account Code. But in
Municipalities where no such officer has been appointed such a written order should be made
by an officer authorised to do so by a bye-law made by the Committee under section 31 of the
Act. In all cases, including payments under Rule XII.5, the officer concerned shall not make such
an order until he has satisfied himself that the budget allotment under the relative head will not
thereby be exceeded and unless the sanction of the Committee exists for the charge, provided
that -]

[(1) in emergencies subject to any bye-law made by the committee under section 31 of
the Act, the president or the executive officer or, in the absence of the president, the
vice-presidents, may sanction the payment of charges for which no sanction of the
committee exists, all such payments being reported at the next subsequent meeting of
the committee;

(2) the officials holding permanent advances may, on their own responsibility and
without obtaining the requisite sanction of the competent authority, incur petty
emergent expenditure therefrom provided that the sub-vouchers are, at the time of
the recoupment of such permanent advances, countersigned by such authority;

(3) the price of vaccine lymph supplied by the Punjab Vaccine Institute and materials and
equipment supplied by the Punjab Public Health Equipment Depot shall in cases in which
the municipal fund is deposited in the treasury, be paid by means of a book transfer from
the municipal fund made by the Treasury Officer on the requisition of the Assistant
Director of Public Health, Punjab (Technical) Vaccination or the Superintendent, Public
Health Equipment Depot, as the case may be.]

[(4) Quotations shall be obtained in all cases where the purchase exceeds -

(i) Rs. 500/- but does not exceed Rs. 3000/- in case of Municipal Council;

(ii) Rs. 500/- but does not exceed Rs. 2000/- in case of Municipal Committees.

However, if the amount involved exceeds Rs. 3000/- in case of Municipal Councils and Rs.
2000/- in case of Municipal Committees, tender shall be invited. When the lowest quotation
or tender, as the case may be, is not accepted, the reasons for rejection shall be recorded
before accepting the higher quotation or tender. Quotations or tenders need not be invited
when purchases are to be made from Government Department/Government Depot or a
Government Industrial Centre or such firms of repute as may be specified by Government
from time to time. Earnest money shall be obtained from the tenders other than sole
manufacturers, Government Institution and such other firms of repute as may specified by
Government from time to time.]

[XII.2A. Payment of contribution due to Government. - If a committee fails to pay

contribution due to Government within the period specified for the purpose, it shall be credited
to the Provincial Revenues by means of a book transfer from the municipal fund made by the
Treasury Officer on a requisition addressed to him by the appropriate authority of the
department concerned.

(2) In cases where the municipal fund is not kept in a treasury, but is deposited in any bank or
with a person acting as a banker, the Deputy Commissioner [or Sub-Divisional Officer within his
jurisdiction as the case may be] on a requisition made to him by the department concerned shall
direct the bank or the person having the custody of the balance of the municipal fund to pay the
amount due or so much thereof as may from time to time be possible from that balance, in
priority to all other charges against the same.]

[XII.2AA. The amount payable by the committee as contribution towards the cost of
maintenance of provincialised institutions or such sanitary or water works as have been made
over the Public Health Circle of Government or as [fees] for the inspection of its sanitary or
water-works shall be paid from the municipal fund by means of a book transfer to be made by
the Treasury Officer on the requisition of the Head of Department concerned through the
Accountant General, Punjab :

Provided that the amount so transferred shall not be more than the amount standing to the
credit of the committee in such fund on the date of the transfer :

Provided further that in the case of committees which have deposited their funds under sub-
section (2) of section 59 of the Act, with a bank or person acting as a banker or a bank other
than the bank to which the Government treasury business has been made over, the committee
shall arrange to pay the necessary amount to Government as a first charge in accordance with
the provisions of sub-section (2) of section 57 of the Act.]

[XII.2B. - When an attachment order issued by a civil court against a municipal committee is
received for execution by a treasury or sub- treasury officer maintaining the accounts of the
committee the amount in question shall be charged forthwith to the funds of the committee
intimation being sent by the Treasury or Sub-Treasury Officer to the committee.]

[XII.3. Payments of sums under Rs. 50 to be made from permanent advance; other than by
cheque. - All sums of less than fifty rupees in the cases of first class Committee and thirty rupees
in the case of other Committees payable from the Municipal Fund shall ordinarily be paid in cash
from the permanent advance of the head of the department or other official concerned; sums
of fifty rupees and over in the case of first class committees and thirty rupees and over in the
case other committees shall ordinarily be paid by cheque.]

[XII.3A. Receipts for cheques issued. - A receipt, stamped, if necessary, shall be obtained for
all cheques issued otherwise than by post from the Municipal office. When a cheque is sent by
post it shall first be crossed and then posted. The payee shall be required to send the receipt by
return of post. [When crossed cheque is sent by post and intimation of its encashment is
received from the treasury or the bank on which the cheque was drawn], the payee's receipt
may not be insisted upon.]

XII.4. Cheque books. - (1) Cheque books, which are to be obtained on payment from
the [Master, Security Printing, India, Nasik Road, Great Indian Peninsula Railway, and are printed
in fugitive ink, shall be kept under lock and key in the personal custody of the Secretary], who
shall notify to the treasury upon which he draws the number of the cheque book which he from
time to time brings into use.

[(1-A) All cheques shall be jointly signed by the President and Executive Officer of the Council. If
the Executive Officer, appointed in Municipal Council is not functioning, the Secretary of the
Municipal Council shall sign the cheques. In the case of Municipal Committees, cheques shall be
jointly signed by the President and Secretary of the Committee. If the President is away, then in
his place Vice-President and Executive Officer/Secretary, as the case may be, shall jointly sign
the cheques. In case both President and Executive Officer/Secretary are not present, then Vice-
President and Accountant shall jointly sign the cheques.
Provided that in the event of dissolution of the Committee, the cheques shall be signed by the
Officer appointed by the Government under clause (b) of sub-section (2) of section 254 of the
Act.]

[(1B) Whenever under these rules any specific duty is assigned to, or power conferred on, the
Executive Officer that duty may be performed and power exercised by the President or in the
absence of the President by the vice-President during the period of suspension of the Executive
Officer for so long as another person is not appointed to officiate as Executive Officer under sub-
section (7) of section 3 of the Punjab Municipal (Executive Officer) Act, 1931 or under sub-
section (4) of section 2 of the Patiala Municipal (Executive Officers) Act, 2033 BK as the case may
be.]

(2) When the Secretary receives a cheque book he shall cause the cheques to be counted and a
note to be recorded on the cover of it stating the number of cheques it contains.

[(3) All cheques should have written across them in words at right angles to the type a sum a
little in excess of that for which they are granted thus "under thirty rupees" will mean that the
cheque is for a sum not less than rupees 20, but less than rupees 30, and similarly "under eight
hundred rupees" will mean that it is less than rupees 800 but not less than rupees 700.]

(4) All cheques shall be written and signed with the special "Registration Ink" obtainable from
the [Controller of Printing and Stationery, Punjab.]

[(5) A cheque issued by a Committee which is not cashed within three month exclusive of the
month of issue shall not be re-issued by altering the date. The drawer should cancel it and draw
a new cheque in lieu of it. The fact of the cancellation and the number and date of the new
cheque should be recorded in the General Cash book against the original transaction and on the
counterfoil of the old cheque and the number and the date of the older cheque that is cancelled
should be entered on the counterfoil of the new one. The fact of the new cheque having been
issued should be entered in red ink in the General Cash Book on the date of issue but not in the
column of payment. These recordings will in no way affect the accounts and no further entries
shall be made.]

(6) When a signed cheque is cancelled it shall be enfaced or stamped "Cancelled" by the drawing
officer : the fact of cancellation shall be noted in red ink over the dated initials of the drawer of
the cheque upon the counterfoil, and also across the order of payment which has been enfaced
upon the voucher.

(7) When a cheque is cancelled before the General Cash Book (Form G.2) has been closed on the
date of issue of the cheque, the entry in the Cash Book, and also in the Classified Abstract (Form
G.3), shall be struck out in red ink over the initials of the Secretary : when the cheque is
cancelled after the General Cash Book has been closed, the cancellation of the cheque shall be
treated as a refund of an overpayment and shall be dealt with in accordance with the provisions
of rule III.3.

(8) Cancelled cheques shall be carefully retained until the accounts for the period to which they
relate have been audited when they shall be destroyed by, or in the presence of, the audit
officer who shall certify upon the counterfoils that the cheques have been so destroyed.

[(9) If an issued cheque is lost and cannot be presented for payment, after ascertaining that it
has not been cashed an intimation shall at once be sent to the Treasury Officer that the original
cheque No. _______________ dated _______________, be considered as cancelled and be not
cashed, if if presented. A duplicate cheque shall then be issued : at the top of the counterfoil of
the duplicate cheque shall be written in red ink, "Duplicate of Cheque No. _____________,
dated _____________(quoting the number and date of the original cheque) and on the
counterfoil of the original cheque shall be written in red ink "Duplicate cheque No.
____________________, dated ____________________ issued" : A note shall also be made in
red ink in column 17 of the General Cash Book (Form G.2) against the item concerned giving the
number and the date of the duplicate cheque issued.]

XII.5. Payment from a permanent advance. - (1) Where a payment is to be made from a
permanent advance, a payment order shall be made by the officer holding the advance on the
sub-voucher relating to the charge by means of a a rubber stamp in Form G.10, the amount of
the payment and the head of account chargeable being inserted in ink.

(2) When a payment order has been made under sub-rule (1) the amount of the charge shall be
paid to the payee whose receipt shall at once be taken : the sub-voucher shall then be stamped
with a rubber stamp in Form G.11, and details of the payment shall be entered on the
expenditure side of a Permanent Advance Account in Form G.12 which shall be maintained by
every officer holding a permanent advance.

XII.6. Recoupment of a permanent advance. - When the balance of a permanent advance is

running low, and in any case on the last working day of each month, columns 4 to 10 on the
expenditure side of the Permanent Advance Account (Form G.12) shall be totalled and the totals
posted into a contingent bill in Form G.13 : a line shall then be drawn right across both sides of
the Account and the bill supported by the relevant sub-vouchers shall be laid before the officer
holding the advance, who after comparing the entries in the bill with the Account shall place his
initials against each entry in column 10 of the Account and sign the bill : the bill shall then be
sent to the committee's Accounts Officer for payment, then number of the bill, the date of its
despatch and the amount having been entered in columns 11 and 12 on the income side of the
Account : on receipt of a cheque in payment of the bill the necessary entries shall be made in
columns 13 and 14 on the income side of the Account.

XII.7. Establishment Check Register (1) The whole establishment to be recorded in the
register. - (1) In order to facilitate the check of establishment bills and to ensure that no charge
is paid twice over, an Establishment Check Register shall be maintained in Form G.14, in which
the whole establishment of the committee shall be recorded, every fresh appointment,
abolition of an appointment or revision of establishment being entered as soon as made
together with the number and date of the committee's resolution or of the order of a sub-
committee or officer to whom a power of making appointments has been delegated under
section 33 of the Act, changes due to revision of establishment shall be entered in red
ink [leaving the original entry intact] [entries relating to total net charge of each section or sub-
section of each Department noted at each page in the beginning of the year and entries due to
revision of establishment made during the course of the year, shall be initialled by the
Secretary.]

(2) Separate pages to be assigned to sections and sub-sections. - (2) A separate page of
the [register] shall be set apart for each section or, if there are sub-sections, for each sub-
section of each department, the different sub-sections or section being entered consecutively in
the order of the major heads of account and a page for the total charge of the department being
reserved immediately after them when number of sections exceeds one.
 Explanation. - (a) By a "section of a department" is meant the establishment relating to a
major head of account of that department; by a "sub-section of department" is meant
the establishment relating to a minor head of account of that department, e.g., the
establishment connected with dak bungalows and sarais is a sub-section of the
department of General Departments, while the Municipal Engineer's establishment is a
section of the department of Municipal Works.

(b) For the purposes of this rule an officer whose pay is under sub-rule (2) of rule XII.8
drawn on a bill in Form G.15 shall be considered to be a sub-section of his department
and a separate page of the Establishment Check Register (Form G.14) shall be assigned to
him.

(3) Entry of temporary establishment. - (3) Temporary establishment shall be entered in the
establishment Check Register (Form G.14) at the end of the space allotted to the permanent
establishment and shall not be mixed up with it : the period for which the temporary
establishment is sanctioned shall be distinctly specified in the second column below the details
of the appointments sanctioned and lines shall be drawn across the columns of the months
previous and subsequent to such period so as to prevent admission, by oversight, of pay for a
period in excess of that sanctioned.

(4) Fly-leaffor details of sections. - (4) When the space in column 2 of the Establishment Check
Register (Form G.14) is insufficient for all the details of a section, they shall be recorded on a fly-
leaf in the following form, which shall be inserted between the pages of the register :

Minimum Maximum Actual on Ist April Income Tax Remarks

Rs. Rs. Rs. Rs.
Head Clerk ... 150 200 170 ..
Second Clerk ... 80 120 96 ...
Thid Clerk ... 35 50 44 ...
Daftri ... ... ... 8 8
Two Peons ... ... ... 12 ...
Total ... ... ... 330 ...
The minimum and maximum columns in the fly-leaf shall be used only when the pay, or part of
it, is progressive; and in this case each increment, as it is admitted, shall be added to the total of
the "actual" column, and the pay of the appointment affected shall be altered in red ink, a note
in each case being made in the remarks column of the month with effect from which the
increment is granted; corresponding alterations shall also be made in the register itself (Form
G.14) in column 3 for the sanctioned pay of the section, the order sanctioning the increment
being quoted in column 1.

(5) Other recurring charges to be recorded in the register. - (5) Recurring charges on account
of scholarships, contributions, rents, etc., shall also be recorded in the Establishment Check
Register (Form G.14), a separate page being assigned to each minor or major head of each
department concerned.

XII.8. Preparation of Establishment Bills. - (1) Except in the case of employees who have
been dismissed or transferred or have resigned or died the pay of no employee of the
committee shall be drawn before the first working day of the month following that in respect of
which the pay has been earned.
[Provided that if the first two days of the month of April following that in respect of which the
pay has been earned are holidays the committee may order the drawal of pay on the last
working day of the month in respect of which the pay has been earned.]

Bills for Secretary and other special officers. - (2) In the case of a municipality of the first class
the salaries of the Secretary, the Municipal Engineer, the Medical Officer of Health, and, with
the approval of the [Deputy Commissioner] of any other officer of the committee in receipt of a
salary of not less than three hundred rupees a month shall be paid by means of bills in Form
G.15, and the [Deputy Commissioner] may permit similar arrangements to be made in the case
of officers of similar status in municipalities of the second class.

(3) Form of bill for rest of establishment. - (a) The pay of all other establishment shall be paid
by means of bills in Form G.16 a separate bill being prepared for each department in which each
section or sub-section of the department shall be shown separately.

Establishment to be shown by sections and sub-sections and full details to be given. - (b) Full
details of names shall be given in these bills and in column 3 shall be shown separately the
salary or leave allowance claimed for each person for the month, whether drawn or not, any
amount not drawn but held over for subsequent payment being shown in column 4 while in
column 7 shall be entered the amount actually drawn for each section or sub-section, the
sections and sub-sections being marked off and the total of each entered in red ink : when
salary is drawn for a portion of a month only, the rate at which it is drawn and the number of
days (with date) for which it is claimed shall be stated either against the name of the person
concerned in the body of the bill or in a note at the foot of the page.

Pay of temporary establishment to be drawn on a separate bill. - (c) The pay of all temporary
employees other than those appointed in leave vacancies shall be billed for separately in the
same form, the sanction for their employment being quoted.

Names of employees on Rs. 20 or less may be omitted. - (d) The names of employees whose
pay does not exceed twenty rupees a month and who do not subscribe to the municipal
provident fund may be omitted from the bill provided the certificate in clause 3 of Form G. 16 is
duly signed.

Absentee Statement. - (e) Employees on leave or deputation shall be clearly shown as such in
the monthly pay bills which shall be supported by an Absentee Statement in Form G. 17 : any
acting arrangements that have been made shall also clearly be noted in the bill.

(f) Arrears to be drawn on separate bills. - Arrears pay shall be drawn not on the ordinary
monthly bill but on a separate bill in which reference shall be made to the bill from which the
charge was omitted or withheld or on which it was refunded by deduction or to any special
order granting a new allowance.

[(g) Where an employee decides to take advantage of salary savings scheme introduced by the
Life Insurance Corporation of India and signs a request authorising the committee to deduct
regularly a specified amount from his salary, the committee shall deduct the amount specified
at source and remit it to the Corporation by means of a crossed cheque.]

[(h) Where an employee decides to take advantage of Thrift and Credit Scheme introduced by
the Municipal Employees Co-operative Thrift and Credit Society, Limited and signs a request
authorising the Committee to deduct regularly a specified amount from his salary the
committee shall deduct the amount specified at source and remit it to the President by means
of a crossed cheque.]

XII.9. Check of Establishment bill. - (1) When an establishment bill has been prepared it shall
be checked in the accounts branch of the committee's office, particular attention being directed
to the Absentee Statement (Form G.17) prescribed by clause (e) of sub-rule (3) of rule XII.8 in
order that no inadmissible charge may be included in consequence of any absence on leave.

(2) From the bill thus checked the Establishment Check Register (Form G.14) shall then be
posted, the amount shown in the column "Net charge for each section" in the bill being entered
against each section : below this shall be written in red ink any amount due, but remaining
undrawn by reason of absence, for the purpose of checking bills for arrears of pay subsequently
submitted : the amount of fines shown in the bill shall similarly be noted in red ink, to allow of
check in the case of bills for refunds of fines subsequently remitted : a subsequent claim not
covered by the last two entries shall not be admitted without full explanation of the
circumstance in which it was omitted from the monthly bill, which is expected to exhibit the full
claim for the month; the number and month of the bill shall be quoted in the entry as shortly as
possible : thus "4-7" will indicate Bill No. 4 of July.

(3) When the payments have recorded against the sections the amounts entered shall be
totalled, and agreed with the total of the bill which shall then be posted, without detailing the
sections again, on the page reserved in accordance with sub-rule (2) of rule XII.7 for the total
charge of the department and the page of the [register] on which the charge of each section has
been recorded shall be noted against the total of that section in the bill.

(4) The order for payment of the bill shall then be written and the bill together with the
Establishment Check Register (Form G.14) laid before the Secretary who shall check the totals,
make such comparison of the bill with the register as he may deem necessary, pass the order of
payment for the signature of the authorised officer and initial the register adding the date of his
initials.

(5) A bill for arrears of pay shall be dealt with in the manner prescribed above : the amount shall
be checked with the relevant red ink entry made under sub-rule (2) above and the payment
noted in the same column below it, care being taken to see that the aggregate total of the
column does not exceed the sanctioned pay of the section or sub-section shown in column 3 of
the Establishment Check Register (Form G.14).

XII.10. Payment of Travelling Allowance Bill. - (1) Form of Travelling Allowance Bill. - (1)
Payment of travelling allowance to members and employees of the committee shall be effected
by means of bills in Form G.18 which shall invariably be submitted early in the month following
that to which they relate.

(2) Travelling Allowance Check Register. - As a check on such [bills] a Travelling Allowance
Check Register shall be maintained in Form G.19 in which all travelling allowance bills shall be
recorded when presented for payment; separate pages shall be assigned to the bills of each
section or sub-section a single line being sufficient for each bill.

[(3) Check and record of travelling allowance bills. - When a Travelling Allowance Bill has
been prepared it shall be checked and otherwise dealt with as near as may be in the manner
prescribed for establishment bills by Rule XII.9, care being taken to see that it has been
countersigned by the President.]
(4) Rates of travelling allowance for members. - Travelling allowance may be paid to a
member of the committee other than a whole-time salaried servant of Government, required to
undertake a journey on municipal business, provided that -

[(a) the members and Presidents of Municipal Committees shall draw travelling and daily
allowance at the rates admissible to Punjab Government servants noted against each -]

(i) Ist Class Municipal Committees

(a) Presidents Grade I Officer drawing pay more than Rs. 2000 but less than Rs. 2250 per mensem.
(b) Members Grade I Officer drawing pay Rs. 1001 per mensem

(ii) IInd Class Municipal Committees

(a) Presidents Grade 1st Officer drawing pay more than Rs. 750 but not exceeding Rs. 1000 per mensem.
(b) Members Grade II Officer drawing pay more than Rs. 700 but less than Rs. 750 per mensem.

(iii) IIIrd Class Municipal Committees.

(a) Presidents Grade II Officer drawing pay Rs. 750 per mensem.
(b) Members Grade II Officer drawing pay more than Rs. 700 but less than Rs. 750 per mensem;
(b) in the case of a journey performed within the district in which the municipality is
situated or of a journey to a place outside such district the travelling allowance payable in
respect of which does not exceed fifty rupees, the committee has passed a resolution
sanctioning the undertaking of such journey, or, in the case of any other journey, the
previous sanction of the Deputy Commissioner had been obtained for such journey to be
undertaken.

[(c) the daily allowance payable to the Presidents of first class municipalities shall not
exceed the amount that would have been payable had such person been a Government
servant of Grade I, subject to the maximum of Rs. 6-4-0. Members of all municipalities
including the Presidents of 2nd class municipalities shall draw daily allowance at Rs. 5 per
diem.]

[-]

[(5) No journey within or outside the District in which a municipality to situated shall be
undertaken by the Executive Officer of a Committee without the previous sanction of the
Committee. If in any emergent case journey has to be performed immediately, the Executive
Officer shall obtain the approval of the President or of the Vice-President if the former is out of
station, before leaving the station and the committee's approval for such journey shall be
obtained in their next meeting.]

[(6) Rates of travelling allowance for employees. - No travelling allowance shall, without the
sanction of Government, be paid to any employee of the committee at a rate in excess of the
rate to which he would be entitled if he were a Government servant of the same status drawing
the same pay.]
Explanation. - For the purpose of this sub-rule a head of a department drawing [Rs. two hundred
per mensem] and over shall be deemed to be of the status of a [Provincial Service Officer in
Government service].

XII.11. Payment of other charges. - Payment of charges other than charges for the payment of
which special forms of bill have been prescribed elsewhere in these rules shall be effected by
means of bills in Form G.13, a payment order having first been made by the authorised officer
on the sub-voucher concerned by means of a rubber stamp in Form G.20.

[XII.11A. A claim against the Committee, which is barred by time under any provisions of law
relating to limitation shall ordinarily be refused and no such time-barred claim or part thereof
shall be accepted without the special sanction of the Committee. The onus to establish grounds
for special treatment for a time-barred claim shall be on the claimant and the authority to
whom such a claim is preferred shall refuse the claim unless a case for special treatment is made
out. As a rule, all petty time-barred claims should be rejected outright and only exceptional
time-barred claims considered by the executive authority concerned in the matter before
submitting the claim to the Committee for sanction.]

XII.12. Procedure of payment of bills. - When the payment order on any bill prepared under
these rules has been signed, a cheque shall be prepared for the amount of the bill, and when
this has been signed by the authorised officer the bill shall be stamped with a rubber-stamp in
Form G.21, every sub-voucher in the case of a bill in Form G.13 being also stamped with a
rubber stamp in Form G.22; details of the payment shall then be entered in the General Cash
Book (Form G.2) and the Classified Abstract (From G.3).

XII.13. Disbursement of pay of establishment. - (1) From every establishment [bill] an

Acquittance Roll in Form G.23 shall be prepared, and, when the pay is distributed to the
establishment, an acknowledgement of receipt shall be taken from each person in column 6, the
receipt stamp required for amounts in excess of twenty rupees being affixed to the roll where
necessary, and all the thumb-impressions of payees being attested by the disbursing officer.
[Note. - The record of the amounts received for disbursement and actually disbursed shall be kept in the chest book in
form G.2-A.]

(2) The officer signing an establishment [bill] or the disbursing officer where any such officer has
been appointed by a committee of the first class shall be personally responsible for every salary
drawn thereon until he has paid it to the person entitled to receive it and has had the
Acquittance Roll (Form G.23) signed, and if necessary stamped by such person : if any payee
does not present himself before the end of the month, the amount drawn for him shall be
refunded by short drawal in the next bill, payment of arrears due being made subsequently in
accordance with the provisions of clause (f) of sub-rule (3) of rule XII. 8; in no circumstances
shall may be kept in deposit beyond the end of the month in which it is drawn.

(3) The committee shall fix dates by which they pay of each section and sub-section of each
department must be disbursed, and it shall be the duty of the Finance Sub-Committee, or, if
there is no sub sub-committee, of the President or of a Vice-President, as the committee may
direct, to satisfy itself or himself that the pay of the whole establishment was disbursed by the
due dates, or if it was not so disbursed, to enquire into the reasons for the delay. [In a
municipality for which an Executive Officer has been appointed this duty will be discharged by
the Executive Officer.]
(4) Every officer responsible for the distribution of pay to members of an establishment shall at
the time of such distribution warn the members of the establishment that the payment of any
part of their wages to a superior officer as commission or dasturi for their continued
employment or any other such purpose is prohibited, and that any such payment will render
both the person who makes it and the person who receives it liable to dismissal.

XII.14. Strength and pay of establishments not to be varied without sanction. - (1) When the
entertainment or new establishment or any change, temporary or permanent, in any existing
establishment is proposed, a note shall be submitted by the head of the department concerned
to the authority empowered to sanction such entertainment or change, and such note shall set
out -

(a) the present cost either of the sub-sections affected or of the total establishment as
the circumstances of the case may indicate to be necessary;

(b) the cost after revision; and

(c) details of the number and pay of the appointments which it is proposed to add or
modify.

(2) The head of a department shall not make adjustments in the pay of establishments by
allowing one employee more and another employee less than the sanctioned pay of their
respective appointments, provided that, if the pay of an establishment is fixed in various grades,
the authority empowered to make appointments may make an extra appointment in an inferior
grade and leave unfilled an appointment in a higher grade, but not so as to increase the total
number of appointments on the establishment.

[XII.15. Income under Capital Receipts shall be earmarked for capital expenditure, and shall not
be utilized for current expenditure without the sanction of the [Commissioner] of the Division in
the case of a first class municipality and the Deputy Commissioner in the case of a second class
municipality.]

CHAPTER XIII

[Municipal Works]

XIII.1. Works not to be executed except on a sanctioned estimate or an accepted report on a

requisition. - (1) No work shall be executed by a committee until a detailed estimate of its cost
has been prepared in Form M.W. I, together with the necessary plans, and has been sanctioned
by the committee :

Provided that -

[(a) If a petty work cost one thousand and five hundred or less is of an urgent nature
(urgency to be specified) a petty works requisition only in Form M.W. 2 need be prepared
and the work executed on acceptance by an officer to whom power to sanction the
execution of the work has been delegated under section 33 of the Act of a report made
on part II of Form M.W. 2 in compliance with a requisition made on Part I of such form by
such officer. If the petty work referred to above is not of an urgent nature is should be
kept pending till sufficient petty estimates have been collected for preparing a list of
minor works, when regular tenders should be invited, in accordance with the provisions
of rule XIII.2; and]
 [-]

(2) The committee shall from time to time at intervals of not more than one year sanction a
schedule of rates for municipal works, and every estimate shall be framed according to those
rates unless in any particular case the Municipal Engineer is of opinion that such rates are not
sufficient or are too high, when a detailed report shall be submitted, along with the estimate, as
to the reasons for preparing the estimate at rates higher or lower than the rates in the
sanctioned schedule, as the case may be.

[In case, the committee has not framed its own Schedule of rates, the PWD Common Schedule
of Rates shall be applicable. The committee shall not allow premium at a rate higher than the
one approved by the Direction Committee of Chief Engineer in the Department of Public Works
on Common Schedule of Rates except with the sanction of the Deputy Commissioner or Chief
Administrator in the case of of Faridabad Complex Administration, Faridabad as the case may
be.]

(3) If at any time before the completion of work, it appears that the sanctioned estimate is likely
to be exceeded by made than five per cent either owing to the rates being found insufficient or
for any other cause, the Municipal Engineer shall submit for sanction a revised estimate in Form
M.W. 1-A, together with a comparative statement giving a full explanation of the causes which
have led to the variations, either in quantities or in rates, between the sanctioned and the
revised estimates : provided that if a revised estimate is not likely to be sanctioned before the
work is finished, a statement in Form M.W. 1-B shall be submitted by the Municipal Engineer
together with the comparative statement referred to in this sub-rule.

XIII.2. Tenders to be called for in case of works to be executed on sectioned estimates. -

When a work is to be started for which an estimate has been sanctioned as required under the
provisions of rule XIII.1, the Municipal Engineer shall, unless the work is to be
executed [departmentally or] through the agency of the Public Works Department of
Government or of the District Board, by notice published in such manner as the committee may
direct, call for tenders for the execution of the whole work or of separate parts of the work or
for the supply of materials in connection with the work, to be submitted in Form M.W. 3 or
Form M.W. 4, as the case may be, by a date to be specified in the notice.

(2) Every notice published under the provisions of sub-rule (1) shall comply with paragraph 1 of
the general rules and directions for the guidance of contractors printed on the first page of Form
M.W. 4, and shall contain the remaining paragraphs of those rules and directions.

XIII.3. Provisions as to tenders. - (1) No tender submitted in response to a notice issued under
the provisions of rule XIII.2 shall be deemed to be a valid tender unless-

(a) in the case of tender submitted by a firm, it is signed by each member of the firm or a
person holding a power of attorney on his behalf;

(b) it is sealed;

(c) it is accompanied by a deposit of earnest-money in cash or currency [notes] or

Bankers deposit at call Receipt in favour of the Committee or in Government Promissory
Notes Government Securities equal in value at the market rate of the day to the amount
of -
 (i) fifty rupees, if the amount of the tender does not exceed two thousand rupees,
or

(ii) one hundred rupees, if the amount of the tender exceeds two thousand rupees,
but does not exceed five thousand rupees, or

(iii) two hundred rupees if the amount of the tender exceeds five thousand rupees,
but does not exceed ten thousand rupees, or

(iv) two hundred rupees for the first ten thousand rupees of the amount of
tender plus one hundred rupees for every five thousand rupees, or portion of five
thousand rupees in excess of ten thousand rupees, if the amount of the tender
exceeds ten thousand rupees.

(2) All sums received under the provisions of sub-rule (1) shall be treated as deposits received by
the committee and shall be brought to account in the manner provided in rule IV. 6 : [Provided
that the Committee may, with the sanction of the Local Government, allow such sums of money
to remain in the custody of an official authorised by it in this behalf and in that case only the
sum forwarded by contractors, whose tenders have been accepted, shall eventually be brought
to account in the manner provided in rule IV.6].

[(3) A Register of Tenders shall be maintained by the Municipal Engineer in Form M.W. 3-A, in
which shall be entered details to all Tenders received in response to notices published under
sub-rule (1) of rule XIII.2.]

XIII.4. Acceptance of tenders. - All tenders shall be opened by the Municipal Engineer at the
time and place specified in the notice issued under the provisions of rule XIII.2 in the presence
of the President or a Vice-President of the committee, and the Municipal Engineer shall
thereafter submit to the President or other officer or sub-committee authorised by the
committee in this behalf all the valid tenders received by that date, together with his
recommendation as to which tender should be accepted and the President, other officer or
Chairman of the sub-committee shall sign the tender or tenders which he or it considers should
be accepted, in token of such acceptance.

[(2) In case no suitable rates are received by the Committee, the contract may be given by
auction but this procedure should be resorted to only when the tenders called for are
considered as too high in comparison with the current market rates.]

XIII.5. Treatment of earnest money. - When a tender has been accepted under the provisions
of rule XIII.4 the earnest money forwarded by contractors whose tenders have not been
accepted shall forthwith be repaid to them on return for the receipts granted under rule IV.6.

XIII.6. Security for performance of contractors. - (1) When a tender has been accepted under
the provisions of rule XIII.4, the contractor shall be required to deposit, within ten days of the
receipt of intimation that his tender has been accepted, in cash or currency notes or
Government securities such sum as together with his earnest-money which will make up a sum
equal to one-tenth of the amount of his tender, as security for the due performance of his
contract, provided that all securities so deposited shall be formally pledged to the committee,
and the committee may in the case of any work or any class of work require that, instead of the
security money being deposited in advance, one-tenth of the amount of every running bill
payable to the contractor during the course of the execution of the work may be deducted and
retained by the committee until the amounts so deducted and the earnest-money deposited
under the provisions of rule XIII.3 together make up a sum equal to one-tenth of the amount of
the contractor's tender.

(2) The security deposited under the provisions of sub-rule (1) shall, if it is cash or currency
notes, be deposited in the name of the committee along with the earnest-money deposited
under the provisions of rule XIII.3. by the contractor in question in the Post Office Savings Bank,
or in such other bank as the committee, with the approval of the [Deputy Commissioner] [or
Sub-Divisional Officer within his jurisdiction as the case may be, in respect of a Municipal
Committee of the second class or third class, as the case may be], may direct and such security
and any sum deducted under the provisions of sub-rule (1) shall be retained by the committee
for six months after completion of the work, and shall then be returned to the contractor,
together with any interest that may have accrued thereon, unless in the meantime the work has
been found to be defective or not up to specification and the contractor has not remedied such
defect or failure to comply with the specification, in which case such security or sum deducted
shall be retained until such defect or failure has been remedied.

[Provided that the security for the supply of sand, cement, gift, etc., may be refunded three
months after the completion of the contract for supply.]

(3) In no circumstances shall an advance be made to a contractor for any work to be executed
for a committee.

[XIII.6A. Refund of security. - Notwithstanding anything contained in the foregoing rules the
security deposited by the contractor for the supply of material in connection with a work to be
executed by the Committee departmentally or otherwise, as mentioned in rule XIII.2 shall be
refunded forthwith after the contractor completes the supply strictly in accordance with the
conditions of the contract and the supply is accepted as such by the Municipal Engineer and
taken on his books.]

XIII.7. Work Orders. - When a report on a requisition in Form M.W. 2 has been accepted
under the provisions of rule XIII.1, the Municipal Engineer shall issue a Work Order in Form
M.W. 5 for the execution of the work to such contractor as he may deem fit unless the work is
of a class which in accordance with a resolution of the committee is to be executed
departmentally by the Municipal Engineer.

XIII.8. Muster roll. - (1) In the case of a work carried out departmentally by daily labour, the
officer or member-in-charge of the work shall maintain a muster roll in Form M.W. 6, paying the
amount due on the roll out of his permanent advance which he shall recoup in the manner
prescribed in rule XII.6, supporting the bill with the muster roll; and notwithstanding anything
contained in rule XII.13, no acquittance roll shall be required in respect of the payment of such
establishment.

(2) One or more muster rolls shall be kept for each work, provided that one muster roll may be
used for several small works in cases in which no harm can result if the total unpaid wages are
regarded as relating only to the largest work in the group.

(3) [Muster-rolls] shall never be prepared in duplicate.

(4) Labourers may be paid more than once a month, but separate rolls shall be prepared for
each period of payment.
(5) They daily attendances and absences of labourers and the fines inflicted on them shall be
recorded daily in Part I of the [muster-roll] in such a way as to facilitate the correct calculation of
the net wages of each labourer for the period of payment to render it difficult to tamper with or
make unauthorised additions to, or alterations in, entries once made and to facilitate the
correct classification of the cost of labour by works and sub-heads of works where necessary.

(6) After a muster-roll has been passed by the officer-in-charge of the work, payment thereon
shall be made as soon as possible, and each payment shall be made or witnessed by the official
of highest standing available, who shall certify to the payments individually or by groups at the
same time specifying both in words and in figures, at the foot of the muster-roll, the total
amount paid on each date; and if any items remain unpaid, the details thereof shall be recorded
in Part II of the muster-roll before the memorandum at the foot of Part I is completed by the
person who made the payment.

(7) Unpaid items shall be carried forward from muster-roll to muster-roll until they are paid, the
payments being recorded and certified in Part II in the same way as current items, provided
that, if any item has remained unpaid for three months, a report shall be made to the Municipal
Engineer, who shall decide whether the liability should continue to be borne in the accounts of
the work concerned.

(8) The progress of work done by the labour shown on a [muster-roll] shall be recorded in Part
III if the work is susceptible of measurement; and if it is not so susceptible, a remark to that
effect shall be recorded.

It was held in LFE No. 5044-B-51/8280, dated 18th September, 1951 to the address of President
NAC Guruhar Sahai, that committees are - Competent to get the work executed departmentally
under rule XIII.8 after resorting to the provisions of rule XIII.2 and 4(2) ibid.

XIII.9. Measurement Books. - (1) Details of every work executed, including works executed
departmentally, shall be entered up in a Measurement Book to be maintained in Form M.W. 7
by overseer or other officer or member in direct charge of the work, and shall be checked
periodically by the Municipal Engineer, who shall initial the entries checked by him and enter
the date of his check and no payment shall be made to any contractor in respect of any work
unless such measurement has been done.

(2) All entries in the 'Contents or Area' column of the [Measurement Book] shall invariably be
made in ink and all other entries shall also, if possible, be made in ink; and, if any entries have to
be made in pencil such entries shall not subsequently be inked over.

(3) The final measurement of a work shall be taken and recorded within ten days of receipt of
contractor's report of the completion of the work and in cases where the provision of this sub-
rule cannot be complied with, the Municipal Engineer shall record the reasons for the delay.

(4) When a payment is made for the work measured, each page of the [book] recording
measurement shall be scored out by diagonal red ink lines and an endorsement shall be made in
red ink, on every abstract of measurement giving a reference to the number and date of the
payment voucher.

(5) When a [Measurement Book] has been filled up, it shall be returned to the Secretary. [ - ].
(6) [Measurement Books] shall be numbered serially and the Secretary shall maintain a stock
register in respect of them in Form M.W. 7-A in which shall also be entered particulars as to
their issue and return.

XIII.10. Forms of Bills for payment for works. - (1) Payment for a work shall be made by
means of -

(a) a First and Final Bill in form M.W. 8 in all cases when the work has been executed on a
Work Order issued under the provisions of rule XIII.7 and in other cases when a single
payment only is to be made on completion of a work or for material supplied for a work;
or

(b) a Running Bill in Form M.W. 9 when payment is to be made during the progress of a
work for a portion of the work executed or a portion of the material contracted or
supplied; or

(c) a Final Bill in Form M.W. 10 when final payment is to be made in respect of a work or
a contract for the supply of material completed, payments in respect of which have
previously been made on Running Bills.

(2) In order to ensure prompt payment of final [bills], every contractor shall be requested to
submit a written report as to the completion of a work not later than the day after such
completion.

XIII.11. Work-charged Establishment Pay Bill. - Notwithstanding anything contained in rule

XII.8, when any establishment is engaged for the purposes of a particular work, and the cost of
such establishment is to be charged against such work, the pay of such establishment shall be
paid by means of a Work-charged Establishment Pay Bill in Form M.W. 11.

XIII.12. Completion Certificates. - No [First and Final Bill] and no [Final Bills] shall be paid in
respect of any work until a Completion Report and Completion Certificate in Form M.W. 12 [and
in the case of petty works of urgent nature, referred to in rule XIII.1, in form M.W. 2] have been
submitted by the [Municipal Engineer] or where there is no Municipal Engineer by any person
appointed by the [Deputy Commissioner] under Rule 9 of the Municipal Works Rules provided
that, with the sanction of the [Deputy Commissioner], [the committee may be resolution permit
the submission of Completion Certificates in respect of works costing not more than by a
specified amount officers subordinate to the Municipal Engineer.

XIII.13. Statement of Receipts, Issue and Balances of Road Metal. - If supplies of road metal
or paving stones or, sets for the repair of roads are maintained or when separate contracts are
made for the supply of metal or paving stones or sets for, and the consolidation or paving of, a
road to be newly metalled or paved or to be re-metalled or re-paved, statements of receipts,
issues and balances of road metal shall be maintained in Form M.W. 13 by the Municipal
Engineer or by officers in charge of circles subordinate to the Municipal Engineer, and such
officers shall at the beginning of each month, submit a copy of the statement for the previous
month to the Municipal Engineer.

XIII.14. The Register of Municipal Works. - (a) A Register of Municipal Works shall be
maintained in the accounts office of the committee in Form M.W. 14 in which shall be entered
the amount of every estimate for a work sanctioned by the committee and details with regard
to every payment made in connection with the work, a separate page being assigned in the
register to each work.

(b) Register of Contracts, Work and Supply Orders. - The Municipal Engineer shall
also maintain a register of Contracts, Work and Supply Orders in Form G.33, as required
by Rule III.9.

XIII.15. The Contractor's Ledger. - A Contractor's Ledger shall be maintained in the accounts
office of the committee in Form M.W. 15, in which shall be entered details of all transactions
with contractors in connection with works.

XIII.16. The Register of Aided and Loan Works. - A Register of Aided and Loan Works shall
be maintained in the accounts office of the committee in Form M.W. 16, in which shall be kept
a pro forma account in connection with every work to the cost of which a grant-in-aid has been
contributed from provincial revenues or for which a loan has been raised.

XIII.17. Water Works Engineer to perform duties of Municipal Engineer in respect of

water-supply works. - The rules contained in this Chapter shall apply to all works undertaken by
a committee in connection with water supply or drainage, provided that, if a committee has
appointed a separate engineer to be in charge of such works, the powers conferred and duties
imposed upon the Municipal Engineer by the provisions of these rules shall be exercised and
performed in respect of such works by such separate engineer.

XIII.18. Workshops. - If the committee maintains a workshop, the officer-in- charge thereof, in
addition to maintaining a Stock Register (Form G.29) as required by rule XVII.7, shall maintain a
Workshop Work Register in Form M.W. 17 and [muster-rolls] of the workmen employed in
accordance with the provisions of rule XIII.8, and the Municipal Engineer or other head of
department concerned shall not less than once a month examine the [Stock
Register] and [Workshop Work Register] and sign them in token on having done so and shall
check the muster-rolls on frequent and unexpected occasions.

XIII.19. Lighting. - (1) In a municipality in which street lamps burning oil are used, in order that
a check may be exercised over the quantity of oil consumed the committee shall cause to be
prepared a table showing the quantities of oil consumed in a given time by lamps of the
different patterns in use, and a copy of this table shall be posted in each oil godown and the
officer or member in charge of lighting shall periodically check the consumption of oil by
comparison with this scale.

(2) If the lighting is done by contract the contract deed, in addition to containing any other
provisions that may be required, shall specify -

(a) the description and quality of the articles to be supplied by the contractor;

(b) the rates at which such articles are to be supplied unless the contract provides for a
lump sum payment; and

(c) the hours during which the lamps are to be kept alight.

CHAPTER XIV

School Accounts
XIV.1. Receipts on account of school fees and fines. - Notwithstanding anything contained in
these rules it shall not be necessary for a receipt to be given in acknowledgement of the
payment of school fees or fines, the receipt of which is recorded in the School Attendance
Register under the provisions of the Punjab Education Code, and only the totals of the fees and
fines respectively received during the months shall be entered in a challan in Form G.9 and the
amount remitted to the municipal office on the last working day of each month or at such more
frequent intervals as the committee may direct.

XIV.2. Preparation and payment of scholarship bills. - (1) Bills for scholarships shall be
prepared by the headmasters of schools in Form S.I. and shall be forwarded alongwith
the [challan] of receipts prescribed in rule XIV. 1.

(2) If a scholarship is payable in respect of any portion of the month to any pupil who at the time
of the preparation of the [bill] has left the school or is absent from the school owing to sickness
or any other cause and is not likely to return before the end of the month in which the bill is
paid, the amount of such scholarship, the period for which it is payable and the name of pupil
shall be entered in red ink in the bill and a deduction of the amount in question shall be made
from the total of the bill, and any amount so deducted shall only be paid subsequently on a
separate bill in which reference shall be made to the bill from which the charge was deducted.

(3) When a [bill for scholarships] is received in the accounts office of the committee, it shall be
dealt with as nearly as may be in the manner prescribed in connection with establishment bills
in rule XII.9.

(4) When the amount of a [scholarship bill] is received, it shall be disbursed at once by the
headmaster, who shall take the thumb-mark of each scholar in the column provided for the
purpose in the Scholarship Acquittance Roll which shall be prepared in Form S. 2 at the time
when the pupil is paid.

(5) If during the month in which the bill is paid it is not possible to disburse the amount due to
any scholar, such amount shall be shown as receipts by way of refund in the challan of receipts
(Form G.9) submitted at the end of the month under the provisions of rule XIV. 1.

XIV.3. [ - ]

CHAPTER XV

Hospitals and Dispensary Accounts

XV.1. Hospital subscriptions and donations. - (1) The medical officer-in- charge of every
municipal hospital or dispensary shall maintain a Hospital Subscriptions Cash Book in Form H.1
on the Receipts side of which he shall enter as received all subscriptions and donations to the
hospital or dispensary, provided that if in any case a large number of subscriptions is received
regularly every month, a register of such subscriptions may be maintained in Form H.2 and only
the total amount of subscriptions received during the month shall be entered in the Hospital
Subscriptions Cash Book on the last day of each month.

(2) On the last working day of each month the amounts received by way of subscriptions or
donations shall be remitted to the municipal office with a challan in Form G. 9.

(3) When the medical officer-in-charge of a municipal hospital or dispensary wishes to make any
payment out of the money received by way or subscriptions or donations he shall fill up and
forward to the Civil Surgeon a Hospital Subscriptions Bill in Form H.3 and if the Civil Surgeon
approves of the object of the proposed expenditure he shall countersign the bill and forward it
to the municipal office for payment, provided that if payment is to be made by cheque to a
supplier the Civil Surgeon shall forward the bill of such supplier together with the [Hospital
Subscriptions Bill]

[Provided further that the medical officer may incur expenditure on his own authority in
accordance with the wishes of a donor up to the extent of Rs. 50 out of the permanent advance
(to be recouped subsequently by drawing bills in form No. H.3) subject to the condition that he
certifies that the expenditure is not in excess of the balance of the donation and is in accordance
with the wishes of the donor.]

(4) A Hospital Subscription Ledger in Form H.4 shall be maintained in the municipal office with a
separate page for each hospital or dispensary and in it shall be entered the amounts remitted
each month under provisions of sub-rule (2), and when any bill countersigned and forwarded by
the Civil Surgeon under the provisions of sub-rule (3) is received, the amount of the bill shall be
paid if the balance standing to the credit of the hospital subscriptions fund concerned is
sufficient to cover the amount of the bill, and the payment shall be entered in the [Hospital
Subscriptions Ledger] and the cheque in payment of the bill forwarded to the Civil Surgeon for
transmission to the medical officer-in-charge of the hospital or dispensary, provided that if
payment is to be made to a supplier, the cheque in payment of the bill shall be drawn in favour
of such supplier and shall be forwarded to the Civil Surgeon for transmission to such supplier;
and the Civil Surgeon shall intimate to the medical officer-in-charge of the hospital or dispensary
the number and date of the cheque.

(5) Every payment made by the Medical officer-in-charge of a hospital or dispensary out of the
amount received in payment of a [Hospital Subscriptions Bill] shall be entered on the Payments
side of the Hospital Subscriptions Cash-Book (Form H.1) and vouchers for the amounts of such
payments shall be forwarded by the medical officer through the Civil Surgeon to the municipal
officer, and when intimation is received by the medical officer from the Civil Surgeon of the
payment of a Hospital Subscriptions Bill by means of a cheque drawn in favour of a supplier the
medical officer shall enter such payment in the Hospital Subscriptions Cash Book (Form H.1) in
red ink.

(6) If in any case any money received by way of a donation or bequest to a hospital or
dispensary has been invested, the amount of interest received from time to time in respect of
such investment shall be entered on the Receipts side of the Hospital Subscriptions Ledger
(Form H.4) and intimation of the credit shall be forwarded through the Civil Surgeon to the
medical officer-in-charge of the hospital or dispensary who shall enter such amount on the
Receipts side of the Hospital Subscriptions Cash-Book (Form H.1) in red ink : no such investment
shall be realized except with the sanction of Government which will be given only if the money
is required for new buildings or extensive repairs to existing buildings or for expensive new
permanent equipment.

(7) Receipts and payments in respect of hospital subscriptions funds shall be entered in the
committee's accounts under the heads IX Suspense Accounts, C - Advances, and Deposits and 9 -
Suspense Accounts, [C - Advances] and Deposits, respectively.

[XV.2. Inspection of Municipal hospitals and dispensary. - Every Municipal hospital and
dispensary shall be inspected by the Civil Surgeon at such intervals as the Inspector-General of
Civil Hospitals may direct, and the Civil Surgeon on the occasion of each such inspection shall
satisfy himself that the Hospitals Subscriptions Cash-Book (Form H.1) is properly maintained as
well as all the registers prescribed in paragraph 543 of the Punjab Medical Manual.]
Note. - Forms G. 12, G. 28, G. 29, G. 30 and G. 31 of the Municipal Account Code, 1930, shall not be used in the case of
dispensaries and hospitals.

XV.3. Hospital ledger to be maintained and annual statement of debit and credit to be
forwarded to be Civil Surgeon. - (1) A hospital ledger shall be maintained in the municipal
office in Form H.5 in which an account showing credit and debit for each hospital or dispensary
maintained by the committee shall be kept on separate page in the following manner :-

On the credit side there shall be entered -

(a) on the 1st day of April, in each year, the amount allotted to the hospital or dispensary
by the local body during the year; and

(b) from time to time, as they may be paid into or credited to the municipal fund, the
amounts of all contributions to the hospital or dispensary received from other local
bodies, or from State funds and all amounts realised by the sale of securities or other
property appertaining to the hospital or dispensary or by the sale of medicines or
otherwise on account of the hospital or dispensary.

(2) On the debit side there shall be entered from time to time as they are disbursed from the
municipal fund, all sums expended on the hospital or dispensary.

(3) On the 31st day of March in each year, the unexpended budget allotment which has lapsed
to the committee shall be shown in red ink on the debit side and the balance of the account
shall be struck and carried forward to the account of the following year.

(4) At the end of each calendar year a statement shall be prepared from the above ledger and
forwarded by the committee to the civil surgeon showing the total income and expenditure
received or incurred under each head in respect of each hospital or dispensary during the
calendar year.

XV.4. Hospital investment Register to be maintained. - A Hospital Investments Register shall

be maintained in the municipal office in Form H.6, in which the acquisition and disposal of the
investments, if any, each municipal hospital or dispensary shall be recorded on a separate page,
and at the end of each year a statement showing totals of the transactions of the year as
recorded in the Register shall be forwarded by the committee to the Civil Surgeon.

XV.5. - Omitted by Punjab Government Notification No. 4799-LG-38/35014, dated 21st

October, 1938.

CHAPTER XVI

[Provident Funds]

XVI.1. Definitions. - In this Chapter, unless there is anything repugnant in the subject or the
context -
 (a) "committee" means a committee which, in exercise of the power conferred by clause
(c) of sub-section (2) of section 43 of the Act, has by resolution decided to establish and
maintain a provident fund;

[(aa) "Family" means a subscriber's husband and wife, legitimate children, and step-
children, parents, sisters and minor brothers residing with and wholly dependant on the
subscriber, and the widow and children of a deceased son of the subscriber;]
Note. - Where the personal law of the subscriber allows adoption, an adopted child shall be treated as a natural child.

(b) "interest" means interest accrued on the balance at credit of subscriber to a provident
fund calculated as if such balance were a deposit in the Post Office Saving Bank : [or the
amount of interest received from investments under rule XVI (2);]

[(c) "Pay" means the amount drawn monthly by a servant of a Municipal Committee as -

(i) the pay other than the special pay or pay granted in view his personal
qualifications, which has been sanctioned for a post held by him substantively
or in an officiating capacity or to which he is entitled by reason of his position in
a cadre; and

(ii) overseas pay, technical pay, special pay and personal pay; and

(iii) any other emoluments which may be specially classed as pay by the competent
authority.]

[(d) "savings bank" means Saving Banks of the Post Office or any other Scheduled Bank.]

[(e) "Servant" includes every employee of a Committee who holds a permanent post
substantively under the committee or is officiating in a permanent post or temporary
post on regular basis and have put in at least one year's continuous service in the
committee or local body which maintains a provident fund, but does not include a
Government servant employed by a Committee.]

(f) "subscriber" means a servant who is required or permitted to subscribe to a provident

fund.

[XVI.2. Servants who shall or may contribute to the provident fund. - Every servant
appointed or promoted, on or after the date of the committee's resolution to establish and
maintain a provident fund to an office of which the [pay] exceeds twenty rupees shall be
required to subscribe to such provident fund at the rate of six and one quarter per cent of
his [pay] and any servant appointed or promoted to such an office before the date of such
resolution may subscribe to such fund if the Committee so permits, provided that the
Committee may allow any servant appointed or promoted to an office of which the [pay] is
twenty rupees or less to subscribe to the provident fund in accordance with the rules contained
in this Chapter.]

[Provided that if a subscriber so desires he may contribute to the Provident Fund at a higher
rate but not exceeding twelve-and-a-half per cent of his pay.]

XVI.3. Recovery of subscriptions. - (1) Every subscription to a provident fund shall be

recovered by means of a deduction of amount of such subscription from each [pay] bill of the
subscriber provided that in calculating the deduction to be made fraction of a rupee
of [pay] shall be disregarded.

(2) Notwithstanding anything contained in rule XVI.2 or in sub-rule (1) of this rule no servant
shall be required or permitted to subscribe to the provident fund while he is absent on leave
except during the first four months of leave on average [pay], or, in the case of a servant who is
entitled under order previously in force to privilege leave, during such privilege leave on the first
occasion when leave is taken under the provisions of the Fundamental Rules.
[Note. - In the case of municipal employee governed by the Civil Service Regulation or the Revised Leave Rules, 1936, the
term "leave on average pay" occurring in sub-rule (2) means the privilege leave on full [pay] of the earned leave as the case
may be.]

XVI.4. Committee's contributions to the provident fund. - The committee shall contribute to
the provident fund of each subscriber [at the rate of six and-a-quarter per cent] of his [pay].

[Provided that if the subscriber, who is required or permitted to subscribe, to the provident
fund, resigns, within five years of the commencement of his service, except on account of illness
or any other cause, which the committee may determine to be a sufficient cause, or has been
dismissed from service of the committee, the committee may deduct from the sum standing to
his credit in the provident fund, the whole or any part of the contributions made by it to his
provident fund and the interest thereon :]

Provided further that with the sanction of Government a committee may contribute to the
provident fund of each subscriber an amount equal to less than the amount of his subscription.

[Note. - If a subscriber is transferred otherwise than as a temporary measure to Government service at his own request, he
shall be treated as having resigned from the service of the Municipal Committee. If he is transferred to Government service
departmentally, his service under the Committee will be considered to have ceased without a resignation.]

XVI.5. Ledger account subscribers. - (1) The committee shall maintain a Provident Fund
Ledger in Form P.F.I., of which separate portions shall be assigned to each subscriber, and there
shall be entered therein each month the amount of each subscription, the amount of the
committee's contribution and the monthly balance on which interest is to be calculated.

[(2) (a) The committee shall maintain a Provident Fund Liabilities Account in Form PFI-A, which
shall be posted upon every day on which accounts are credited or debited to the accounts (Form
PF.I.) of the subscribers.

(b) The amount of interest accrued on the balance at the credit of a subscriber shall be
calculated at the end of the year or when the account is closed to the nearest pie on the
lowest balance, excluding fractions of a rupee, at the credit of the subscriber between
the close of the fourth day and the last day of each month.]

[Provided that no interest shall be credited to the Account of a Muslim subscriber, if he informs
the committee in writing that he does not wish to receive the interest and that the committee
may utilize it on any subject of general public interest :

Provided further that if the subscriber subsequently ask for interest it shall be credited to his
account with effect from the first day of the year in which he asks for it.]

(3) At the end of each year the committee shall furnish each subscriber with a statement in
Form PF 2, showing the balance at credit of his account at the beginning of the year, the
amounts added thereto by way of subscriptions and contributions and the interest accrued
during the year and the balance at credit of his account at the end of the year.

XVI.6. Payment of subscriptions and contributions to be made monthly to the Post Office
Savings Bank. - (1) Every committee shall open an account, to be called The
_________________Municipal Provident Fund Account, with the Savings Bank, and as soon as
may be at the beginning of each month and if possible, before the fourth day of each month
shall pay into such account the amount of all subscriptions recovered under the provisions of
rule XVI.3 and of the contributions payable under the provisions of XVI. 4.

[The Executive Officer of the Municipal Committee or where there is no such Executive Officer
the Secretary may operate the Municipal Provident Fund Account.]

(2) Before a cheque is drawn for payment of subscriptions and contributions as required by sub-
rule (1), a bill shall be prepared in Form PF 3 and submitted with the relevant salary and
establishment bills in Form G. 15 and G. 16 for signature to the authorized officer as required by
rule XII. 11, provided that the committee may make payment of the subscriptions and
contributions on a single bill and by means of a single cheque in respect of all subscribers or on
separate bills and by means of separate cheques in respect of subscribers of different
departments.

(3) All cheques drawn under the provisions of sub-rule (2) shall be drawn in favour of the
Postmaster.

XVI.7. General rule as to withdrawals. - (1) No sum shall be withdrawn from the provident
fund account with the Savings Bank except -

(a) under the provisions of sub-rule (1) of rule XVI. 8 for the purpose of investment or
placement; or

(b) under the provisions of sub-rule (1) of rule XVI. 9 for the purpose of making an
advance to a subscriber's; or

(c) Under the provisions of Rule XVI. 10 when a subscriber's account is to be closed for
payment to the subscriber or his heirs.

(d) under the proviso to sub-rule (2) of rule XVI. 5 for the purpose of utilising the interest
on subject of general public interests.

(2) Whenever a sum is withdrawn from the provident fund account with the Savings Bank such
sum shall forthwith be credited to the Municipal fund under the head IX - Suspense Accounts, C-
Advances and Deposits and payments shall be made therefrom for the purpose for which the
sum was withdrawn by means of a separate cheque on a bill in Form G.13 and such payment
shall be debited to the head 9 - Suspense Accounts, C - Advances and Deposits, provided that if
any portion of a sum withdrawn is to remain credited to the municipal fund under the
provisions of any rule such portion of such sum shall be credited by book transfer under the
head I General Departments - A - General, (vi) Miscellaneous Unclassified Receipts, a
corresponding debit being shown under the head 9 - Suspense Accounts, C - Advances and
Deposits.
[XVI.8. Investment of provident fund moneys. - (1) [Save as provided in rule XVI.8.A] with the
previous sanction of the [(Deputy Commissioner)] [(or Sub-Divisional Officer within his
jurisdiction as the case may be in respect of a Municipal Committee of the second or third class,
as the case may be)] a committee may from time to time withdraw any sum from the provident
fund account with the Savings Bank and may invest or place such sum subject to the conditions
and restrictions applicable to the investment or placement of a portion of the municipal fund
under sub-section (1) of section 55 of the Act.

(2) The interest obtained by the investment or placement of any sum under sub-rule (1) shall be
deposited in the Savings Bank to the credit of the Municipal Provident Fund Account subject to
the following conditions :]

Conditions

1. The committee shall establish a Provident Fund Investments Depreciation Fund, hereinafter in
these conditions referred to as "the fund" which shall be deposited in the Post Office Savings
Bank or in the [Imperial Bank of India] Savings Bank, under the General Account of the General
Provident Fund Account.

2. There shall be credited to the fund immediately on accrual :-

(a) all interest accruing on the amount of the fund from time to time, and

(b) one per cent per annum of the sum invested under sub-rule (1), provided that the
interest received from investments and available for distribution amongst the subscribers
should not be less than the interest obtainable from the Post Office Savings Bank.

(3) After deducting from the interest obtained by the committee on any sum invested under
sub-rule (1) the amount referred to in condition 2 (b) above, the remainder of the said interest
shall be deposited in the Savings Bank to the credit of the Municipal Provident Fund.

(4) At the end of each year immediately after the account of each subscriber has been credited
with interest in accordance with the provisions of sub-rule (2) of rule XVI the Secretary of the
committee shall lay before the committee a statement showing :-

(a) the total amount of interest accrued to the Municipal Provident Fund Savings Bank
Account during the year just closed either earned in the Savings Bank itself or credited
thereto in accordance with the provisions of condition above; and

(b) the total amount of interest credited to subscriber's account under the provisions of
sub-rule (2) of rule XVI. 5.

5. At the close of five years after the institution of the fund and at regular intervals of five years
thereafter the committee shall furnish to the Commissioner for scrutiny a statement showing
the total amount of Provident Fund investment held by the committee and a statement showing
the total amount at the credit of the fund.

6. If the [(Deputy Commissioner)] [(or Sub Divisional Officer with in his jurisdiction as the case
may be, in respect of Municipal Committee of the second or third class, as the case may be)], is
satisfied at any quinquennial scrutiny that any of the investments held by the committee out of
the Provident Fund have depreciated in value, he may direct that an amount not exceeding the
amount of such depreciation shall be drawn by the committee from the fund and credited to
the Provident Fund Savings Bank Account.

7. If the [(Deputy Commissioner)] [(or Sub Divisional Officer within his jurisdiction as the case
may be,)] is satisfied at any quinquennial scrutiny that the balance in the fund after the
withdrawal, if any, of any sum in accordance with condition 6 is sufficient to cover any
depreciation likely to occur during the next following period of five years in regard to any of the
investments held by the committee as part of the Provident Fund, the [Deputy
Commissioner] [or Sub Divisional Officer within his jurisdiction as the case may be, in respect of
a Municipal Committee of the second or third class, as the case may be], may direct that for the
next five years the amounts to be deposited in the fund in accordance with clause (b) of
condition 2 shall be reduced to such sum as he may prescribe, or shall be discontinued for such
period not exceeding five years as he may direct.

8. If any reduction or discontinuance of the periodical payments into the fund has been ordered
by the [Deputy Commissioner] [or Sub Divisional Officer within his jurisdiction as the case may
be], in respect of a Municipal Committee of the second or third class, as the case may be under
the provisions of condition 7, he may at any subsequent quinquennial scrutiny direct that the
payments be restored to the original figures or to any portion thereof as he may deem fit.

(9) (a) [The cost of making any investment under the provisions of sub-rule (1) shall be met out
of the depreciation fund.]

(b) When any such investment is realised and the net price obtained after payment of
any brokerage and other incidental charges is less than the amount originally invested,
the difference shall be made good from the depreciation fund, and if such net price is
greater than the amount originally invested, the difference shall be credited to the fund.

[(9) If there is sufficient balance in the fund and there is no likelihood of its being utilised in
accordance with condition No. 6 due to investment in the Government securities, such as
National Saving Certificates, National Defence Saving Certificate, Government Loan, Treasury
Deposit Certificates, etc. the committee may with the previous sanction of the Deputy
Commissioner transfer to the municipal fund part of the balance of the fund not exceeding 75
per cent.]

[XVI.8A. Investment of provident fund moneys in National Saving Certificate. - (1) At the
option of a subscriber, the whole or part of the amount at his credit in the provident fund
account should be invested by the Committee in National Savings Certificates in accordance
with the Post Office National Savings Certificate Rules, 1944, [or Defence Deposit Certificates or
if possible in any other Government security or scheme approved by the Government.]

(2) The entire interest accrued on such investment should be credited by the Committee to the
account of the subscriber who has invested the money. The incidental charges in connection
with making or realizing of such investment should be debited to the account of the subscriber.

(3) The National Savings Certificate, like insurance policies, should be pledged to the President
of the Committee. These certificates will remain in the custody of the Secretary of the
Committee until their maturity or retirement or death of the subscriber, whichever event occurs
earlier, so that if circumstances require the withholding of the Committee's contribution under
rule XVI.4 or deduction of any amount under rule XVI.11 of the Code, it may be made, and the
certificates may be cashed before the due date of their maturity.]
[XVI.9. Advances. - (1) With the sanction of the Deputy Commissioner, [or Sub-Divisional
Officer within his jurisdiction as the case may be, in respect of a Municipal Committee of the
second or third class, as the case may be], any subscriber may, out of his own share of the
amount shown at credit of his account [in column 5-A] of the Provident Fund Ledger, be granted
an advance from his provident fund of an amount not exceeding three times the amount of
his [pay] for the following purposes and for no other purposes;

(a) to pay expenses incurred in connection with the illness of the subscriber or a member
of his family; or

(b) to pay expenses in connection with marriages, funeral or other ceremonies which by
the religion of the subscriber it is incumbent upon him to perform and in connection with
which it is obligatory that expenditure should be incurred :

Provided that no such advance shall be sanctioned unless the pecuniary circumstances of the
subscriber are such that the expense, is, in the opinion of the Deputy Commissioner, absolutely
necessary :

Provided further that when an advance has already been granted to a subscriber, a subsequent
advance shall not be granted to him until at least twelve months after the final repayment of all
previous advances together with interest thereon except for very special reasons to be recorded
in writing by the sanctioning authority.

(2) The amount of an advance shall be repayable in not more than twenty-four equal
instalments as may be fixed [by the Deputy Commissioner], when sanctioning the advance and
such instalments shall be recovered as if they were subscriptions in the manner provided in rule
XVI.3.

(3) The amount of an advance shall be recorded in column 5 of the Provident Fund Ledger (Form
P.F. 1) and a note shall be made in column 8 as to the number of instalments by which the
advance is recoverable, and each month the amount of the advance repaid shall be recorded in
red ink in column 2 of the ledger in column 7 shall be entered the amount of the balance of the
advance outstanding, and the amount of interest lost on the monthly outstanding balances shall
be recovered from the subscriber in the month following the month in which the last instalment
of the advance is recovered, and at the end of the year shall be added to the interest calculated
on the monthly balance shown in column 6.

[Provided that Muslim subscriber whose deposit in the fund carry no interest shall not be
required to pay any interest.]

(4) If under the provisions of [ - ] first proviso to rule XVI.4 the whole or any portion of a
committee's contribution is to be withheld when a subscriber's account is closed, and if when
such account is closed any portion of an advance made to such subscriber is still outstanding the
amount of the advance outstanding plus the amount of interest lost calculated on the monthly
outstanding balances of the advance shall be added to the amount shown at credit of the
account, in [Column 5-A] for the purpose of calculating the committee's share of the total credit
of account.]

[XVI.9A. - (1) Each subscriber shall, as soon after he joins the Provident Fund, as possible be
called upon by the committee to furnish a declaration in Form P.F. 7, in favour of one or more
members of his family in such proportions as he may like showing what he wished to be done
with the provident fund money at his credit in the event of his death.

Declaration in form P.F. 7 by subscriber. - (2) A subscriber, who has no family, may nominate
any other person or persons instead, provided that such a nomination shall be deemed to have
been duly made in accordance with these rules only for as long as the subscriber has no family.

(3) If a subscriber at any time acquires a family or remarries, any declaration already made
under sub-rule (1) or (2) above, as the case may be, shall forthwith become null and void and
unless a revised declaration is received by the committee the amount of his accumulations shall
be dealt with under clause (a) or (b) of sub-rule (1) XVI.10, as the case may be.

(4) A nomination may be cancelled by a subscriber and replaced by any nomination which is
permitted to be made under this rule.]

[XVI.9B. Payment of insurance premia out of provident fund. - Payments towards a policy of
insurance may at the option of subscribers, be substituted for or deducted from subscriptions to
the provident fund, subject to the following conditions :-

(i) Only the amount of subscription with interest thereon standing at the credit of a
subscriber in the provident fund may be withdrawn to meet the payment of premia.

(ii) If the total amount of any subscription or payment substituted under rule XVI.9B is
less than the amount of subscription payable to the fund under rule XVI.2, the difference
shall be paid by the subscriber as subscription to the fund.

(iii) The policy to be financed from the provident fund shall be the one effected by the
subscriber himself on his own life except a "Pure Endowment" policy, which involves no
element of risk on life. The policy shall be such as is legally assignable to the President of
the Committee.

Notes. - 1. A guarantee policy which ensures the payment of the sum assured in the event of the policy holder being retired
by the Medical Board shall be accepted for the purposes of this rule.

A contingent annuity, which, in the event of his death, ensures a certain income to the insurant's wife or children or both
shall also be accepted for the purposes of this rule.

2. If a policy of insurance is effected by a subscriber on his own life for the benefit of a sole beneficiary specifically named
therein a formal assignment by both insured and the sole beneficiary shall be permissible. An assignment of a policy
effected by subscriber on his own life for the benefit of more than one beneficiary whether existent or not at the date of
the policy shall not, in view of the attendant legal difficulties, be permissible under this rule.

[(iv) The policy shall not be effected for the benefit of any person/persons other than
that/those who is/are entitled to receive the amount of the provident fund from which
the policy is financed].

(v) The President/Executive Officer shall not make any payments on behalf of the
subscribers to Insurance Companies nor shall he take steps to keep the policy alive. If a
subscriber certifies every month at the time of preparation of the pay bill that the
monthly premium payable by him to the Insurance company is not less than amount of
his Provident subscription under rule XVI.2, the President/Executive Officer shall accept
the same. He can, however, demand and scrutinize, at any time, the premium receipts or
certified copies thereof showing that such payments have actually been made to the
 Insurance Company. In the event of the insurant's not furnishing the same, the
President/Executive Officer shall make the necessary deductions from the subscriber's
pay for deposit in his provident fund. Should the subscriber prefer to do so, he may apply
for an advance from the provident fund, for payments of his quarterly, half-quarterly or
yearly premia.

(vi) Any sums already at the credit of the subscriber in the fund may be withdrawn for the
payment of premia or for the purchase of a single payment of life policy, or at the
discretion of the President for the payment of single premium but the utilization of sums
already at credit shall not relieve the subscriber from continuing to make the usual
deduction from his current salary within the limits prescribed in rule XVI.2 of these rules
whether the amount is to be paid into the funds or towards an insurance policy except
when the subscriber is on leave other than leave on average pay.
Note 1. - The amount which may be withdrawn under this clause for payment of a single premium is the amount required
to a single premium which on receipts by the insurance company at once becomes the property of the company. A
subscriber shall not withdraw an amount from the fund for deposit with the insurance company for adjustments towards
payments of future premia on his policy. Withdrawals are permissible to finance single payment endowment policies and
not merely whole life policies and there should be no objection to the acceptance of a policy on the joint lives of a
subscriber and his wife.

[Note 2. - (1) When a subscriber proposes to convert a policy which has been assigned to the President into a paid-up
policy, it should first be ascertained whether the insurance Company intends to issue a new document. If it does, the policy
should be reassigned to the subscriber in the following form, namely :-

"I ____________________the President of the ____________________Municipal Committee, hereby assign unto

____________________the within policy of assurance."

The new policy should be assigned to the President, and handed over to him.

If the company proposes to convert the policy into a paid-up one by means of an endorsement thereon to that effect, the
policy should either be handed over to the subscriber for transmission to the Insurance Company, or be sent direct by the
President but in either case with a request that the policy when so endorsed by the Company may be returned direct to
the President. If there is thereby a radical change in the benefits derivable under the policy, a memorandum that may be
required to be endorsed and signed by the President as well as the subscriber acknowledging the altered position.

(2) In the case of paid-up policies it is necessary to see that the paid-up value of the policy is not less than the amount of
the premia diverted from the Fund. The amount of interest which would have accrued on such premia had they been left in
the Fund should not be taken into account in the calculation. If the paid-up value is less than the total of the sums
withdrawn from the Fund for premium payments, not including interest, the subscriber should forthwith be required to
pay the difference into the Fund. Any profits stated by Company to have accrued on policy upto the date of its conversion
should, however, be taken into account calculating the difference, only if the Company is prepared to guarantee the profits
by making an entry in the policy.

(3) In the case of a policy assigned to the President which a subscriber wants to surrender, the policy may be reassigned to
the subscriber for the purpose of the surrender on the condition that he pays the surrender value of the policy into the
Fund Account and, if the surrender value be less than the total of the sums diverted from the Fund for premium payments,
and interest, thereon that he also pays the difference into the Fund. In other words, such cases should be treated like
those of lapsed policies and the Fund Account has to be restored to what it would have been, had the premia not been
paid out of it.

(4) In cases both of paid-up and surrendered policies in which it is considered that the recovery in a single instalment of the
difference to be paid into the Fund Account will cause hardship to the individual concerned, recovery should be effected in
such number of instalment, not exceeding 24, as the Deputy Commissioner may decide. If recovery is made by instalments,
interest will not be charged in the case of paid-up policies even for the period of actual recovery, but interest at the usual
rate will be charged for this period in the case of surrendered policies.
Note. 3. - The provisions of note 2 above cover cases for final surrender of policies and not of exchange of policies.
Accordingly, a holder of a policy assigned to the President who desires to improve his position by replacing one policy by a
better one should be permitted to do so, subject to the following conditions being observed, namely :-

(1) The new policy should carry the same or a larger amount of insurance.

(2) The premium in respect of the new policy should not be more than the premium paid in respect of the old policy.

(3) The new policy should mature within the same year as the old policy.

(4) The new policy should be in force on the date on which the original policy is surrendered.

Note. 4. - The provisions of note 3 above contemplate the surrender of a policy or the substitution of a better policy in
another office. In many cases in which it is to the advantage of a policy holder to replace his policy by a policy in another
and better office, the policy which is to be replaced may not be entirely surrendered. Insurance companies allow, as an
alternative to the surrender of the existing policy, a fully paid-up policy for a reduced sum insured as a quid pro quo for
premiums paid prior to discontinuance of further premiums. The existing policy remains in force as a paid up policy, and
constitutes part insurance cover in addition to the sum insured under the new policy. Thus, as a result of the replacement
transaction, the policy holders hold insurance in two offices partly in the old and partly in the new office. If the total
amount of insurance cover given by the two policies be the same or larger than the amount of insurance given by the old
policy prior to the discontinuance of the premium thereunder, the first of the conditions set out in the note referred to
above should be regarded as satisfied.]

(vii) A policy shall not be rejected, if -

(1) there is a difference between the amount payable at maturity and death if is
occurs earlier; or

(2) the assured is unable to say what amount precisely will be payable at maturity;
or

(3) the insurant has not been required to be medically examined by the company;
or

(4) the amount withdrawn is to meet the premium due for one or more policies,
provided they are otherwise acceptable.

(viii) (a) If a policy assigned to the President matures before the subscriber quits the
service the President shall, save as provided in sub-rule (c) proceed as follows :

If the amount assured together with the amount of any accrued bonuses is greater
than the whole of the amount withheld or withdrawn from the fund in respect of
the policy with interest thereon, the President shall reassign the policy to the
subscriber and make it over to him and he (the subscriber) shall pay to the fund,
the whole of any amount withheld or withdrawn with interest accrued thereon.

If the amount assured together with the amount of any accrued bonuses is less
than the whole of the amount withheld or withdrawn, with interest, the President
shall realize the amount assured together with any accrued bonuses and shall place
the amount so realized to the credit of the subscriber in the fund.

(b) the bonuses which accrue on any policy may be allowed to accumulate with the policy
until it matures, but if it is incumbent on the policy holder to withdraw them as they fall
due, the amount shall be credited to the subscriber's account in the fund.
(ix) A policy, the payment or payments for any premia on which shall, under this rule, be
substituted for subscriptions to the fund or withdrawn from the sum at the credit of a
subscriber for the same purpose, and which has not already been assigned to the
President of the Committee and delivered to him under this rule, shall within 3 months of
such payment or withdrawal be so assigned and delivered as security for the payment
contingently of the sum which in the event of lapse, of the policy or any assignment,
charge or encumbrance thereof or thereon becomes payable by the subscriber to the
fund. No payment so made by a subscriber shall be considered as in substitution for any
subscription by him to the fund unless and until the life policy shall have been so
assigned and in default of such assignment within three months after such payment or
withdrawal, as the case may be, the amount so paid or withdrawn shall forthwith be paid
or repaid by the subscriber concerned to the President or shall in default be deducted
from such subscriber's pay.

(x) (a) The assignment of a policy under this rule shall be endorsed on the policy and shall
be in the following form :-

"I, A.B. of ...................hereby assigned unto the President of the ..............Municipal

Committee the within policy of assurance as security for payment of all sums which
under rule XVI.2 of the rules for the management of municipal provident funds may
hereafter become liable to pay to the committee's provident fund" or in the case of
policies of insurance effected by the subscriber for the benefit of a sole beneficiary as
follows :

"We, A.B. (the subscriber) of .............................and C.D. (the sole beneficiary of the
policy) of...................................... in consideration of the President of the
...................Municipal Committee agreeing at our request to accept payments towards
the within policy of assurance in substitution for the subscription payable by me, the said
A.B. to the Committee's provident fund (or as the case may be, to accept the withdrawal
of the sum of rupees ________________ from the sum to the credit of the said A.B. in
the provident fund for payment of the premium of the within policy of assurance),
hereby jointly and severally assign unto the said President the within policy of assurance
as security for payments of all sums which the said A.B. may hereafter become liable to
pay to that fund.

[(b) Save as provided in the clause X(c) the policy shall be reassigned to the subscriber
and handed back to him on quitting his service or on his refunding with the full interest
thereon any advances taken from the provident fund for the purpose of paying premia
thereon and in the event of his death, before quitting the service, unless the Policy is
already effected for the benefit of the beneficiary stipulated in sub-rule (v) above,
reassignment shall be executed in favour of, and the policy be handed to, the legal
representative of his estate as determined by a civil court having competence to pass
orders in this respect. Notice of a reassignment shall be sent to the insurance company
by the President of the committee. In the case of a sole beneficiary having been already
appointed by the policy-holder during his life time and registered by the insurance
company the reassignment shall be effected in favour of such beneficiary].

(c) If notice has been received by the President of any assignment or attachment of, or
encumbrance on the policy he shall not execute a re-assignment of the policy in favour of
the subscriber or in the event of his death of the legal representative of his estate as
 determined by a civil court having competence to pass orders in this respect, until he
shall have obtained the orders of the [Deputy Commissioner] [or Sub Divisional Officer
within his jurisdiction as the case may be, in respect of a Municipal Committee of the
second or third class, as the case may be.]

(xi) The following procedure shall be observed in regard to the assignment and re-
assignment of life policies :-

(a) When the assigned policy is delivered to the President under clause (ix) it shall
be accompanied by a certificate from the subscriber to the effect that no prior
assignment of the policy exists. The President shall satisfy himself independently
that this is the case by direct reference to the insurance company.

(b) Notice of the assignment of policy shall be given by the subscriber to the
insurance company and acknowledgement of the notice of the insurance company
shall be sent by the subscriber to the President within three months of the date of
assignment.]

XVI.10. Withdrawal on closing of account. - (1) When a subscriber dies the amount shown to
the credit of his account in [column 5-A] of the Provident Fund Ledger (Form PF 1) plus interest
accrued to date shall be withdrawn from the Savings Bank, and payment of such amount shall
be made -

[(a) When the subscriber leaves a family. - (i) If a nomination made by the subscriber in
accordance with the provisions of rule XVI.9-A in favour of member or members of his
family subsists, the amount standing to his credit in the fund or the part thereof to which
the nomination relates shall become payable to his nominee or nominees in the portion
specified in the nomination.

(ii) If no such nomination subsists or such nomination relates only to a part of the amount
standing to the credit of the subscriber, the whole amount or the part not covered by the
nomination shall, notwithstanding any nomination purporting to be in favour of any
person other than a member of the subscriber's family become payable as to one moiety
to the husband or the widow (or in equal shares to the widows) as the case may be, and
as to the other moiety in equal shares to the children of the subscriber :

Provided that if one or more of his sons have died leaving behind their widows or sons or both,
the respective shares of each such deceased son shall be payable in equal shares amongst their
sons or widows or both :

Provided further that if the subscriber has left only a husband or widow or widows, as the case
may be, the amount shall become payable to such husband or widow or in equal shares to such
widows as the case may be, or if the subscriber has left only children, the whole of the amount
shall become payable to such children in equal shares subject to proviso (1) above or failing
both children and widow or widows or husband, as the case may be, in equal shares among
other members of the family;

Provided further that no share shall be payable to -

(i) married daughters whose husbands are alive; and

 (ii) married daughters of a deceased son whose husbands are alive;

if there is any member of the family other than those specified in clauses (1) and
(2) above.]

[(b) When the subscriber leaves no family. - (i) If a nomination made by him in
accordance with the provisions of rule XVI. 9-A in favour of any person or persons
subsists the amounts standing to his credit or the part thereof to which the nomination
relates shall become payable to his nominee or nominees in the proportion specified in
the nomination.

(ii) Or if no nomination is made by him in accordance with the provisions or rule

XVI.9-A subsists, or if such nomination relates only to a part o the amount standing
to his credit in the fund, the whole amount or the part thereof to which the
nomination does not relate, shall be payable to his legal heirs.]

Explanation. - (1) For the purposes of this sub-rule a subscriber's posthumous child shall be considered to be a member of
his family at the time of his death and, if born alive, shall be treated in the same way as a surviving child born before the
subscriber's death.

(2) The case of a posthumous child already born when the case is taken up by the disbursing officer will present no
difficulty. For the rest if the possibility of the birth of a posthumous child is brought to the notice of the disbursing officer,
the amount which will be due to the child in the event of its being born alive, should be retained, and the balance
distributed in the normal way under the sub-rule referred to above. If the child is born alive, payment of the amount
retained should be made as in the case of a minor child; but if no child is born or the child is still-born, the amount retained
should be distributed among the family in accordance with the sub-rule cited above.

(2) Subject to the provisions of rule XVI.4, when a subscriber ceases to be a servant of the
committee the amount shown to the credit of his account in [column 5-A] of the Provident Fund
Ledger (Form P.F. I) plus interest accrued to-date shall be withdrawn and shall, be paid to him :

Provided that -

(a) if he is transferred otherwise than temporarily to the service of another local body
which maintains a provident fund, or when having been transferred temporarily from the
service of another local body he reverts to such service the amount withdrawn shall be
paid to such other local body for credit to his provident fund account with such local
body; and

(b) if he is transferred temporarily to the service of another local body [or Government],
the amount shown to the credit of his account in column 6 of the Provident Fund Ledger
shall not be withdrawn, but shall remain to the credit of his account.

(3) when a subscriber -

(a) has proceeded on leave preparatory to retirement, or

(b) while on leave, has been permitted to retire or declared by the competent authority
to be unfit for further service the amount shown at the credit of his account in column 5-
A of the Provident Fund Ledger (Form PF 1) shall upon application made by him in that
behalf, become payable to him, subject to the provisions of Rule XVI 4 :

Provided that the subscriber, if he returns to duty, shall, if required to do so by the Committee,
repay to the Provident Fund for credit to his account, the whole or part of any amount paid to
him from the provident fund in pursuance of this sub-rule with interest thereon in cash or
securities or partly in cash or party in securities by instalments or otherwise, by recovery from
his salary or otherwise as the committee may direct.

[(4) Notwithstanding anything contained in [sub-rule (1), (2) or (3) no amount shall be
withdrawn for payment to a subscriber or his heirs under the provisions of those sub-rules such
payment can be made immediately]; provided that if such payment cannot be made within one
year if the amount at credit of the subscriber's provident fund account is ten rupees or less, or
within three years if such amount is more than ten rupees the committee shall withdraw such
amount and credit it to the municipal fund under the head 1 - General Departments - A
General, [(v) *] Miscellaneous Unclassified Receipts; and no payment shall thereafter be made
to the subscriber or his heirs except under the orders of the [Deputy Commissioner.]

(5) When an account is closed under the provisions of this rule a line shall be drawn in red ink
across the page below the last entry in the Provident Fund Ledger Account and the number and
date of the challan with which the amount at credit of the account is remitted to the treasury
shall be recorded below the line together with the number, date and amount of the bill or bills
on which payments of the amount are subsequently made, and if the amount is withdrawn
under the provisions of sub-rule (3) the words "Dead Account" shall be added.]

XVI.11. Amounts to be withheld when account is closed. - Notwithstanding anything

contained in rule XVI.10 if any sum is due from a subscriber to the committee at the time when
his account is closed the committee may deduct the amount of such sum [but not exceeding in
any case the total amount of its contributions credited to the account of the subscriber and
interest accrued thereon] before making payment under rule XVI.10 of the amount at the credit
of his provident fund account.

[XVI.12. General accounts to be maintained by the Committee. - Every committee shall

maintain -

(1) a Provident Fund Account in Form P.F. 4.

(2) a Provident Fund Investments Account in Form P.F. 5.

(3) a Provident Fund Investments Interest Account in Form P.F. 6 or if a Provident Fund
Investment Depreciation Fund is maintained a Provident Fund Investment Interest
Account in Form F.P. 6-A and a Provident Fund Investment Depreciation Fund Account in
P.F. 6-B; and

(4) an account in Form P.F. 8, showing the amount available for payment of insurance
premia of the Provident Fund subscribers].

[(5) a register in Form P.F. 9 for keeping a list of investors of and the account of
investments in the National Savings Certificates.]

CHAPTER XVII

Miscellaneous

[XVII.1. Service books and Service rolls to be maintained for municipal employees. - Service
books shall be maintained for all permanent employees of the Committee other than Malis,
Beldars, Pound-Keepers Herdsmen, Cartmen, Khansamas, Sweepers and Bhishtis. The book shall
be obtained at the cost of the employees from the treasury and shall be maintained in
accordance with rule 12.2 and 12.8 of the Civil Service Rules (Punjab), Volume I, Part I. A service
rolls in form Miscellaneous I shall be maintained for every other class of municipal servants for
whom no service book is necessary.]

[XVII.1A. Alteration of date of birth of an employee in the service book. - No alteration in

the entry relating to the date of birth of an employee of the Committee in his service book shall
be made unless the resolution of the Committee permitting the alteration to be made has been
confirmed by the [Deputy Commissioner] [or the Sub Divisional Officer] within his jurisdiction as
the case may be, in respect of a Municipal Committee of the Second or third class as the case
may be.]

[XVII.1B. Character rolls for permanent employees in superior service. - Character rolls shall
be maintained for all permanent employees in superior service of the committee as defined in
Article 396, Civil Service Regulations.]

[XVII.2. Security to be furnished by certain employees. - (1) Every employee of the

Committee other than an Honorary Secretary or Medical Officer of Health, or a police constable
in charge of a cattle pound, or, if the [Deputy Commissioner] [or Sub-Divisional Officer] within
his jurisdiction as the case may be, in respect of a Municipal Committee of the second or third
class, as the case may be, so directs, an Executive Officer, a paid Secretary, Municipal Engineer,
Electrical Engineer, Medical Officer, who is a Government servant, Health Visitor or Headmaster
of Secondary School or, if the Government so directs any other employee of the Committee
shall if entrusted with the receipt, disbursement of custody of money or property of the
Committee be required to furnish security, to an amount to be fixed in each case by the
Committee.]

Provided that -

(1) the amount of security shall be fixed by the Municipal Committee with the approval
of [the Sub-Divisional Officers in the case of second class Municipal Committees and the
Additional General Assistant to the Deputy Commissioner, or the District Development
and Panchayat Officer at the district headquarters in the case of third class municipal
committee] and with the approval of the Commissioner in the case of first class municipal
committees with due regard to the responsibility of the officer and the value of cash or
property usually handled by him;

(2) in exceptional cases the Deputy Commissioner, [ - ] may allow payment of the
required security by monthly deductions not exceeding 20 per cent from the salary of the
employee concerned, subject to the condition that the amount of the security shall be
made up in a period not exceeding three years and that personal securities shall be
obtained until the full amount has been recovered;

[(3) In case where cash security is taken the amount shall be deposited in a bank or post
office so as to earn a reasonable rate of interest, the amount of interest, when added by
the Bank or Post Office, may be paid to the official concerned, if claimed by him.]

[(2) Such security may be cash, Government paper or other stocks or a bond hypothecating
property or a Fidelity Guarantee Policy or a personal security with two sureties. A security bond
in Form G.24 shall be executed on property stamped paper in all cases except in the case of
Fidelity Guarantee Policy.]
Note. - [The right denomination of stamp to be used for these security bonds is non-judicial as distinguished from judicial
or Court-fee stamp. An impressed sheet (obtainable from stamps vendors) or an impressed label (affixed or impressed by
the office of the Financial Commissioner's Punjab, should be used for these security bonds. Where the bond is typed or
printed it should be sent to the office of the Financial Commissioner, Punjab for affixing the required stamps. When
impressed sheets are purchased from stamp vendors it should be seen that they are of the proper value, as prescribed in
Article 57 of Schedule 1-A of the Stamp Act.]

(3) Securities shall be examined and verified by the first day of April each year, and certificate to
the effect that this has been done shall be signed by the Secretary against each item in the
"Remarks" column of the Register of Deposit in which details with regard to such securities are
to be recorded under rule XVII.3.
Note. - [The Fidelity Guarantee Policy shall be examined and verified by the Secretary once a quarter to see that the
employee concerned has actually renewed it by payment of prima, the receipt for which should be attached to the policy
and a certificate to this effect shall be furnished to the President/Executive Officer for his information.]

[XVII.2A. Security by a banker. - Security by a banker under section 54 of the Punjab

Municipal Act, 1911, shall be furnished in Form G. 24, the amount to be fixed by the (Deputy
Commissioner) in each case.]

XVII.3. Register of Deposits to be maintained. - Details with regard to all deposits made with
the committee whether in the form of cash, Government paper or other stock or in the form of
security bonds shall be entered from time to time as occasion arises in a Register of Deposits to
be maintained in Form G. 25 separate pages being assigned to different classes of deposits : in
the case of bonds, if property is hypothecated, a brief description of the property shall be
entered in the "Remarks" column of the register and the heading of column 10 shall be changed
to "Name of Depositor".

(2) A fresh Register of Deposits [*] shall be opened at the beginning of each year in which details
of all deposits which have not lapsed or been returned during the previous year shall first be re-
entered.

[XVII.3A. Lapse of Security. - A security deposited under rules XIII.6 and XVII. 2 [or deposited
under the provisions of any other rules or bye-laws of the Committee] shall lapse and shall be
credited to the committee if it remains unclaimed for more than three complete account years
after it has been become due. A security thus lapsed to the committee shall not be repaid unless
the committee is satisfied that the item was really received, was carried to credit as lapsed and
is now claimed by the person who might have drawn it at any time before the lapse. The
repayment of the security shall be recorded in the remarks column of the Register of Deposits
(Form G. 25) in order to ensure that a lapsed deposit is not paid more than once.]

XVII.4. Register of Investment to be maintained. - (1) Details with regard to all investments
made by the committee, including fixed deposits placed with a bank but excluding investments
made from provident fund balances, and hospital or dispensary investments shall be entered
from time to time as occasion arises in a Register of Investment to be maintained in Form G. 26,
in which every entry made shall be initialled by the Secretary.

(2) A statement showing the amount and nature of all investments recorded in
the [Register] shall be forwarded each year with the annual account in Form G.5.

XVII.5. Register of Loans to be maintained. - Details with regard to all loans raised by a
committee shall be recorded in a Register of Loans to be maintained in Form G. 27, each portion
of a loan as it is taken being recorded in column 4 : each loan shall be recorded on a separate
page of the register and every entry made in the register shall be attested by the Secretary.

XVII.6. Register of Stamps to be maintained. - (1) Every officer or employee of the committee
in charge of stamps for postage or receipts shall maintain a Register of Stamps in Form G.28, in
which the receipts and issue of all stamps shall be recorded as they occur.

(2) Service stamps shall not be used by a Government servant conducting correspondence on
behalf of a committee.

[(3) (a) All reference by municipal servants on personal matters, such as leave, leave salary, pay
increments, fund subscription, house rent, postings etc. must be submitted in covers, the
postage charges of which should be borne by the said municipal servant and not by the
employer committee. When, however, references are forwarded officially by a superior officer
the letter may be treated like any other official communication.

(b) All telegraphic message regarding personal matter referred to in (a) above or other
analogous matters must be paid for by the persons sending them. When a telegraphic
reply is required on any such matter the reply should be always prepaid.

(c) these instructions are also applicable to the use of telephone for trunk-calls.

(d) When it comes to the notice of audit that a letter, telegram or trunck-call has been
made at municipal expense instead of at the expense of the officers concerned, recovery
should be made from the next pay bill of the servant who should be informed of the
reasons for the recovery. If the servant wishes to object to the recovery, he must take the
matter up with the Examiner, Local Fund Accounts, Punjab through his Controlling
Officer, who may, if he desires obtain the orders of Government.]

XVII.7. Stock Register to be maintained. - (1) Every officer or employee of the committee in
charge of stocks or articles or materials kept for issue other than stamps shall maintain a Stock
Register in form G.29, in which shall be entered from time to time as occasion arises every
transaction affecting such stocks : postage pages of the register shall be assigned to different
classes of stocks.

(2) If any particular class of articles kept in stock is issued frequently during the day, e.g., coal,
the issues shall be noted as they occurring a Store keeper's Day-book to be maintained in Form
G.30, and at the end of the day the daily totals shall be taken and carried into the
Stock [Register].

XVII.8. Register of Movable Property to be maintained. - Every officer or employee of the

committee in charge of movable property of the committee other than stamps or stocks of
articles or material kept for issue shall maintain a Register of Movable Property in Form G.31.

XVII.9. Register of Suits to be maintained. - (1) The committee shall maintain a Register of
Suits in Form G.32, in two volumes, one for suits in which the committee is the plaintiff and one
for suits in which the committee is the defendant, and a separate page of the register shall be
allotted to each suit.
(2) In the volume of the register of [suits] in which the committee is the defendant the amount
paid in satisfaction of a decree given against the committee and the date of payment shall be
noted in the "Remarks" column.

[(3) The committee shall also maintain a register in from G.32-A in respect of process-fees. A
statement showing the expenditure incurred in his behalf shall be submitted by the committee
in Form G-32-B, at the end of each month to the Deputy Commissioner of the district for the use
of the Stamp Auditor.]

[XVII.9A. Maintenance of a register of Composition offences. - The committee shall maintain

a register of composition of offences under section 229 of the Punjab Municipal Act, 1911, in
the following Form :-

Register of composition of offences under section 229 of the Municipal Act.]

Serial Date Name and Nature of Date of Amount payable if Date of application Sum of money
No. of address of offence and commission any according to or signature or fixed by the
entry the reference to of offence or rates fixed by the thumb-impression of compounding
offender relevant report committee or the offender desiring officer by way
section of Act value of damage the offence to be composition
or Rule if any assessed. compounded

1 2 3 4 5 6 7 8

[XVII.10. Custody of Government Promissory notes. - Government promissory notes shall, if

they are not likely to be returned within twelve months, be sent for safe custody to the Treasury
Officer of the nearest Government treasury : in all other cases valuables belonging to the
committee shall, if there is a branch of the [*] Imperial Bank of India situated within the
municipality concerned or at the headquarters of the district, be kept in that bank, and if there
is no such bank, be kept in the Government treasury in a strong box to be deposited in the
double lock room, and the keys of such strong box shall remain with such person as the
committee may direct : provided that securities endorsed in favour of any person acting as a
banker or any bank other than the Imperial Bank of India, and fixed deposit receipts of such
persons or banks, other than the Imperial Bank of India, shall be deposited in the Government
Treasury.]

XVII.11. Check of Registers by heads of departments. - Every head of department shall from
time to time examine the [Stamp Registers], [Stock Registers] and [Registers] of Movable
Property maintained by employees of his department and shall verify the existence of the
balances of stamps, stocks or property shown in the registers; at the end of each quarter he
shall submit a report to the President showing the dates on which such registers were last
examined.

XVII.12. Triennial verification of Committee's properties. - (1) The whole of the property of
the committee, moveable and immovable including investments, shall be verified at least once
in three years by a member or members of the committee specially appointed : provided that
the same member or members shall not be appointed for this purpose on two consecutive
occasions : provided further that with the sanction of the [Deputy Commissioner] the
committee may employ a professional auditor for the purpose of this verification.

[(2) Notwithstanding anything contained in sub-rule (1) the said verification of the meters,
heaters, and boilers, if any, and other parts of the electric installation belonging to the municipal
committees of Simla and Amritsar shall be made by a person or persons specially appointed by
the committee in this behalf.]

[XVII.13. Writing off irrecoverable and other dues of losses. - Whenever it is found that any
amount due to the Committee is irrecoverable or should be remitted, or whenever any loss of
municipal money or stores or other property occurs through the fraud or negligence of any
person or for any other cause and such property or money is found to be irrecoverable the fact
shall be reported to the Committee, and the Committee may order the amount or value of the
property to be written off as loss, irrecoverable or remitted, as the case may be, provided that,
if in any case the amount due or the value of such property is in excess of five hundred rupees in
case of A class Committee, three hundred rupees in case of B class Committee and two hundred
rupees in case of C class Committee, such order shall not take effect without the approval of the
Deputy Commissioner. The Deputy Commissioner shall exercise the powers of writing off the
losses upto rupees one thousand in respect of Committees of A, B and C Class. The cases of
more than one thousand rupees shall be referred to Government for approval.]

XVII.14. Advances. - (1) When an advance of any sort whether a permanent advance under
the direct supervision of the Secretary who shall sign the entry, as a demand in the
Miscellaneous Demand and Collection Register (Form R.12), and when the advance is adjusted,
the particulars of the transaction shall be entered on the collection side of the register, a note
being made in the "Remarks" column showing how the adjustment was made.

(2) The amount of the advances outstanding at the end of each half-year shall be abstracted on
to a list of outstanding showing the original amount advanced and the date on which the
advance was made and the list shall be laid before the committee.

(3) Every officer to whom a permanent advance is given shall on receipt of the money and on
the first day of April each year sign an acknowledgement that the amount is due from and to be
accounted for by himself, and in the case of the transfer of the charge of an office a similar
acknowledgement for the full amount shall be signed by the relieving officer, and all such
acknowledgements shall be kept on a guard file in the office of the committee.

(4) No permanent advance of an amount exceeding five hundred rupees shall be made to any
officer, member or servant of the committee without the sanction of the [Deputy
Commissioner.]

[(5) No advance of any amount shall be made to the President, Vice-President or a member of a
committee without the previous approval of the Municipal Committee; provided that -

(i) at the time of passing such a resolution the committee shall satisfy itself that no
previous advance is outstanding against the person concerned without good and
sufficient reasons; and

(ii) the committee shall prescribe a time limit on the expiry of which the advance shall be
accounted for or refunded.]
XVII.15. Office Order-book. - An Office-book shall be maintained by the Secretary in which
shall be noted all appointments, promotions, leave, suspensions, fines and office arrangements
and other order generally; provided that if the committee so directs separate Order-books may
be maintained in different departments by the heads of departments.

[XVII.16. Opening of Bank Account and Minimum Balance. - (i) The Municipalities shall
open Salary and Wages Account in the local branch of the Haryana State Co-operative Bank for
all the receipts on account of tax and non-tax revenue. The municipalities shall also open
another bank account called Loan and Grants Accounts.

(ii) The municipalities shall maintain minimum balance in the Salary and Wages Account
equal to one month salary and wages to be declared by the Executive Officer or
Secretary, as the case may be, in the beginning of each financial year:

Provided that the municipal councils and municipal committees may draw a sum of rupees thirty
thousand and rupees fifteen thousand respectively out of the minimum balance, in a month, as
contingent expenses :

Provided further that authorised officer to operate the bank account shall mark the word
'against minimum balance' on each cheque drawn for salary or for the contingent expenses :

Provided further that a register for all such declarations and withdrawals from the salary and
wages account shall be maintained by the Accountant/Accounts Clerk of the municipalities
under the attestation of Executive Officer or Secretary, as the case may be.]

XVII.17. Audit and accounts. - [(1)(a) Subject to the control of the Secretary to Government
Punjab, Finance Department, who will be the final audit authority the accounts of the
committee shall be audited, so far as possible once a year or half yearly as the government may
direct, by or under the orders of the Examiner, Local Fund Accounts, Punjab. The State
Government may, however, direct that the accounts of a specified committee be audited from
day to day by one or more resident auditors on the establishment of the Examiner, Local Fund
Accounts, Punjab.]

[(b) In addition to the ordinary audit against statute rules and orders, higher audit will be
conducted with reference to the cannons of financial propriety reproduced below :-

(1) Every Public Officer should exercise the same vigilance in respect of expenditure
incurred from Government revenues or other public funds as a person of ordinary
prudence would exercise in respect of the expenditure of his own money.

(2) Money borrowed on the security of allocated revenues should be expended on

those objects only for which, as provided by rules made under the Act, money may
be so borrowed.

If the money is utilized on works which are not productive, arrangements should be
made for the amortization of the debt.

(3) No authority should exercise its powers of sanctioning expenditure to pass an

order which will be directly to its own advantage.

(4) Government revenues of public funds should not be utilized for the benefit of a
particular person or section of the community unless :-
 (i) the amount of expenditure involved is significant, or

(ii) a claim for the amount could be enforced in a court of law, or

(iii) the expenditure is in pursuance of recognised policy or custom.

(5) The amount of allowances, such as travelling allowance granted to meet

expenditure of a particular type should be so regulated that the allowances are not
on the whole sources of profit to the recipients.]

Without prejudice to the other audit functions, a list of the more important matters that may be
taken up in higher audit is given below :-

(1) Examination of administration reports dealing with the public expenditure.

(2) Scrutiny of order delegating financial authority.

(3) Scrutiny of Rules and Orders affecting expenditure and other transactions subject to
audit.

(4) Scrutiny of the financial position and suggestions for increasing income or reducing
expenditure for maintaining financial equilibrium.

(5) Scrutiny of outstanding realisations and collection of information from the assessees
to ensure the correctness of the arrears.

(6) Scrutiny of refunds of rates and taxes to ensure that there is no leakage of revenue.

(7) Scrutiny of expenditure with a view to see that it is necessary and to make
suggestions designed to stop extravagant expenditure.

(8) In order to see that the travelling allowance bills are not made a source of profit:-

(i) scrutiny of bills of Heads of Department and other officers who countersign their
own bills with special regard to the necessity and frequency of journeys and halts
to see if they show any special features which cannot be objected to in the ordinary
audit;

(ii) scrutiny of all travelling allowance bills particularly of journeys by motor with a
view to checking excessive demands;

(iii) scrutiny of countersignatures on bills to show if the controlling officer is not

showing undue laxity;

(iv) suggestion for transfer of headquarters in order to effect economy in travelling

allowance charges and to facilitate the work of officers concerned;

(v) scrutiny of actual expenses on account of hire of conveyances and other charges
with a view to fixing a suitable monthly allowance;

(vi) scrutiny of frequent bills for short journeys.

 (9) Scrutiny of bills for pay and allowances with a view to see that the allowances or scale
of pay are not excessive in comparison with that of similar posts under Government or in
adjoining local bodies.

(10) As regards works and supplies and services -

(i) the instance or calls for tenders being made before contracts are given and on
comparison of local rates with those at important trade centres before placing
orders;

(ii) comparison of rates in the neighbouring localities for work done in the supply
made;

(iii) scrutiny of lump sum contracts in various departments for similar work with a
view to reduction in expenditure;

(iv) scrutiny of public works staff with a view to see that the proportion of cost of
establishment to work is not too high in comparison with local bodies similarly
constituted;

(v) scrutiny of contributions recovered for services rendered with a view to see that
the contribution covers the present cost;

(vi) in cases of water and electric supplies and other similar works the comparison
of the quantity of the work done with the consumption of fuel.

(11) Contingencies. - Scrutiny of water-supply electric and other contingent charges with
a view to suggesting the possibility of effecting economy.

2. It has been decided by Government to levy audit fee on daily rate basis in the case of
Municipal Committee in Patiala Division also.

[(2) The Committee shall pay to Government an audit fee calculated, according to the number of
auditors engaged on auditing the accounts of the committee as follows:-]

[(a) in the case of one Junior Auditor, at the rate of fifteen rupees for every day or part of
a day;]

(b) in the case of Senior Auditor, at the rate of forty rupees for every day or part of a day;

(c) in the case of a party of one Senior and one Junior Auditors, fifty-five rupees for every
day or part of a day;

(d) in the case of a party of one Senior Auditor and two Junior Auditors, at the rate of
seventy rupees for every day or part of a day;

Provided that the Punjab Government may in the case of any specified committee prescribe
rates other than those specified above.

The above rates will remain in force for a period of three years with effect from the 1st April,
1945 [*]
Explanation. - (1) The decision of the [Examiner, Local Fund Accounts, Punjab], whether an auditor is a junior auditor or a
senior auditor, shall be final.

(2) For the purpose of this sub-rule, "day" shall means working day, that is, any day on which the audit staff is actually
engaged on auditing the accounts of the committee.

(3) The audit fee payable under the provisions of sub-rule (2) shall be paid by means of a book transfer from the municipal
fund made by the Treasury Officer on the requisition of the auditor conducting the audit.

(4) The committee shall produce at the time of audit all such accounts, registers, documents and papers as may be
required by the audit officer for the purpose of the audit.

(5) It shall be open to an audit officer by public notice or otherwise to invite the public to assist in his audit by the
production of receipts, passes or other documents issued by employees of the committee in acknowledgement of moneys
paid to the committee.

(6) After each audit of its accounts the committee shall deal promptly with the objection statement and audit note sent by
the audit officers, and shall as soon as possible decide upon the action to be taken on the objections and suggestions made
by the audit officer the action so taken shall be indicated on an interleaved copy of the audit note, and one copy of such
annotated copy of the audit note shall be produced for the information of inspecting officers at their next visit, one copy
shall be forwarded to the Examiner, Local Fund Accounts, Punjab and one copy to the Deputy Commissioner for
transmission to the Commissioner of the Division.

[(e) The Committee shall deal promptly with the audit note. It shall, within a month of
the receipt thereof, convene a special meeting of the committee to consider the
objections and suggestions made by the Auditor and to decide upon the action to be
taken in regard thereto and the decision so taken shall be indicated on an interleaved
copy which shall be sent to the Examiner, Local Fund Accounts, Punjab, within three
months of the date of the receipt of the audit note. A copy with two spare copies shall at
the same time be sent to the Deputy Commissioner. A similar copy should be kept in the
office of the Committee and shall be placed before the Inspecting Officers at their next
visit.]

[Note. - In municipalities in which resident auditors are appointed the municipal committee will be required to pay the cost
of the establishment employed as determined under Fundamental Rule 117 or such smaller sum as the Punjab
Government may determine.]

XVII.18. Embezzlements. - (1) Whenever an embezzlement of municipal moneys or property is

discovered, an enquiry shall at once be instituted by the President [or the Executive Officer
where such an officer has been appointed] and the fact of the embezzlement shall immediately
be reported by him direct to the [Examiner, Local Fund Accounts, Punjab], who may if he thinks
fit, investigate the matter, and intimation shall also be sent through the Deputy Commissioner
to the Commissioner of the Division. [Cases involving embezzlement in excess of Rs. 10 shall be
reported to the Police after the Examiner, Local Fund Accounts, Punjab, has inquired into the
matter and is satisfied that there does exist a prima facie case of embezzlement.]

(2) Whenever in any circumstances an irregularity likely to be connected with an embezzlement

or the fraudulent loss of money or property is discovered, a report shall at once be sent to the
Examiner, Local Fund Accounts, Punjab and also to the Deputy Commissioner, who may, if he
thinks fit, apprise the Commissioner of the Division of it.

[XVII.19. Leave allowance. - The Committee may grant leave allowances to any of its
employees, provided that no allowance shall exceed the sum of to which under the rules for the
time being governing the conditions of service the employee would be entitled if the service had
been service under the Government.]
Explanation. - Register of books purchased for library. - For the purpose of this rule a head of
a department drawing rupees two hundred per mensem or over shall be deemed to be of the
status of a Provincial Service Officer in Government Service.

[XVII.20. Details with regard to all books, purchased by the Committee and kept in the Library
for public use, shall be entered by the Librarian, as the occasion arises, in a register to be
maintained in form M.L.I., in which every shall be initialled by the Secretary."]

[XVII.21. Sub-Divisional officer, Kulu. - For the purposes of the foregoing rules the Divisional
Officer, Kulu, shall exercise, perform or discharge all the powers, functions or duties of the
Deputy Commissioner over in respect of any municipal committee within the limits of his
jurisdiction.]

"From T.S. 6

(See rule VII-8)

Book No.------Municipal Council/Committee-------- No. --------Municipal Council/Committee--------

Date of Issue-----------

Building and Land Tax Bill

The amount specified below is due from -----------

Name and address of assessee-------------

Number of demand in Demand and Collection Register, Period in respect of which the amount is
due, Particulars of person(s) or property in respect of which the tax is due, Amount

------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------

House No. ------- Block No. --------

(a) Tax for the year------- on above property is Rs. --------

(b) Actual payable amount with 10% rebate if payment is made within due date of 30
days from the receipt of the Bill Rs.----------

(c) Actual payable amount with 10% penalty if payment is not made within due date-------
------

(d) Interest amount @ 1% per month is Rs.--------

(e) Arrears of tax, if any---------------------

(f) Fire Tax @ ½% of the Annual Value of the residential buildings and @ 1% of the Annual
Value of all other buildings--------------------

(g) Arrears of Fire Tax, if any -----------------------------

Gross Total :--------------------

 Signature of Tax Superintendent

-------------------------------------------------------------------------------------------

"From T.S. 6

(See rule VII-8)

Book No.------Municipal Council/Committee-------- No. --------Municipal Council/Committee--------

Date of Issue-----------

Building and Land Tax Bill

The amount specified below is due from -----------

Name and address of assessee-------------

Number of demand in Demand and Collection Register, Period in respect of which the amount is
due, Particulars of person(s) or property in respect of which the tax is due, Amount

---------------------------------------------------------------------------------------------

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House No. ------- Block No. --------

(a) Tax for the year------- on above property is Rs. --------

(b) Actual payable amount with 10% rebate if payment is made within due date of 30
days from the receipt of the Bill Rs.----------

(c) Actual payable amount with 10% penalty if payment is not made within due date-------
------

(d) Interest amount @ 1% per month is Rs.--------

(e) Arrears of tax, if any---------------------

(f) Fire Tax @ ½% of the Annual Value of the residential buildings and @ 1% of the Annual
Value of all other buildings--------------------

(g) Arrears of Fire Tax, if any -----------------------------

Gross Total :--------------------

Signature of Tax Superintendent