Gujarat Panchayats Act, 1993
Wherein exercise of the powers given by this Act, a district panchayat imposes any tax or fee then notwithstanding anything in this Act or any other law for the time being in force, in any area within the jurisdiction of a village panchayat— (a) such tax or fee shall be collected by the village panchayat concerned from those persons who are liable to pay the tax or fee under the rules made by a district panchayat and who reside, or carry on any trade or exercise any profession or follow a calling, within such area, in accordance with the provisions of section 215, as if it were a tax or fee imposed by the village panchayat under the provisions of this Act, and shall be paid to the district panchayat at such time and in such manner as the district panchayat may specify; (b) [ (i) such percentage not exceeding fifty per cent. of the gross collection of such tax or fee [(other than tax levied under section 3 of the Gujarat state Tax on professions, Trades, callings and Employments Act, 1976, read with clause (ix-a) of sub-section (1) of section 200)] in any financial year, as the State Government may by general or special order determine shall not form part of the district fund, but shall be assigned to the village panchayat, in such manner as the district panchayat may determine. [(ii) total amount of gross collection of tax levied under section 3 of the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976 read with clause (ix-a) of sub-section (1) of section 200, in any financial year in any area within the jurisdiction of a village panchayat shall not form part of the district fund, but shall be assigned to the concerned village panchayat.]