PREAMBLE
Whereas it is expedient to empower Government to prohibit, in certain cases, the levy of municipal taxes payable by persons in the military, 1[naval] 2[or air-force] service or by the State Government; It is hereby enacted as follows:
This Act may be called the Municipal Taxation Act, 1881.
It extends to the whole of India except Part B States;
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In this Act Municipal Committee 4 includes a Municipal Corporation or a body of Municipal Commissioners constituted by or under the provisions of any enactment for the time being in force.
Notwithstanding anything contained in any enactment for the time being in force, the Central Government may, by an order in writing, prohibit the levy by a Municipal Committee of any 5[specified tax payable by any person subject to the Army Act, 1950 (46 of 1950), the Navy Act, 1957 (62 of 1957), or the Air Force Act, 1950 (45 of 1950) who is compelled by the exigencies of military, naval or air-force duty to reside within the limits of a municipality.]
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The Central Government may, by a like order, rescind any such prohibition.
7[3-A. Power of State Government to prohibit levy of taxes on it. Notwithstanding anything in any enactment for the time being in force, the State Government may by an order in writing prohibit the levy by a Municipal Committee of any specified tax payable by the State Government and may by a like order rescind any such prohibition.]
So long as any order made under Section 3, prohibiting the levy of a tax on any person mentioned in 8[* * *] that section remains in force, the Central Government shall be liable to pay to the Municipal Committee mentioned in the order the amount which otherwise would have been payable to such Committee by such person:
Provided that the Central Government shall not be liable to pay any sum in respect of any horse which such person is bound, by the regulations of the service to which he belongs, to keep.
So long as any order made under 9[Section 3-A] prohibiting the levy of any tax payable by the State Government, remains in force, the said State Government shall be liable to pay to the Municipal Committee, in lieu of such tax, such (if any) as an officer from time to time appointed in this behalf by the State Government may, having regard to all the circumstances of the case, from time to time determine to be fair and reasonable.
If any question arises whether any duty is military, 10[naval] 11[or air-force] duty within the meaning of this Act, the decision of the Central Government thereon shall be conclusive.
If any question arises whether any person is compelled as aforesaid to reside within the limits of a municipality or is bound as aforesaid to keep any horse, the decision thereon of such authority as the Central Government may, from the time to time, appoint in this behalf shall be conclusive.
1. Inserted by Act 35 of 1934, Section 2 and Schedule.
2. Inserted by Act 10 of 1927, Section 2 and Schedule I.
3. The words and shall come into force at once were repealed by Act 10 of 1914.
4. For the purposes of this Act, every Cantonment Board as defined in the Cantonments Act, 1924 (2 of 1924), is deemed to be a Municipal Committee see Section 97 of that Act.
5. Substituted by Act 58 of 1960, Section 3 and Schedule II.
6. The words or (b) payable by the Secretary of State for India in Council were repealed by the A. O. 1937.
7. Inserted by the A. O. 1937.
8. The words clause (a) of were repealed by the A. O. 1937.
9. Substituted by the A. O. 1937, for Section 3 .
10. Inserted by Act 35 of 1934, Section 2 and Schedule.
11. Inserted by Act 10 of 1927, Section 2 and Schedule I.