Gudiyattam Gudiyattam Town - Municipal

Chapter ñ 9 Final Report: Gudiyattam Municipality
9 MUNIICIIPAL FIINANCE
9.1 OVERVIEW
Gudiyatham Municipality maintains a municipal fund for managing the finances of
the Municipality. The accounts of the municipal fund were maintained on cash
based single entry system till the year 1999-2000. From 1.4.2000 onwards, accrual
based double entry book keeping system was implemented. The Municipality
maintains accounts separately for General Fund, Water Supply and Sewerage Fund
and Education Fund.
This Section contains a description of the municipal finances, the sources and uses
of funds, and an assessment of municipal finances based on important financial
indicators.
9.2 GENERAL DETAILS
Gudiyatham is located at Vellore District and the total population as per 2001
census is 91452 Nos. Out of the same the total urban poor is 16236 Nos., comprising
17.75% of the total population. The total number of slums is 9 Nos comprising
population of 8651 Nos., which aggregates to 9.45% of total population.
It is a Grade I municipality.
9.3 RECEIPTS
Receipts under the Revenue Account include taxes and fees, grants, water &
sewerage charges, income from properties, service charges & fees and other
income.
9.3.1 Property Tax
Property Tax is the single largest tax revenue source and accounts for around 25% of
the total revenue. This tax is levied on residential, commercial, industrial and vacant
lands. The property tax is levied on the basis of Annual Rental Value of the property.
The property tax is levied on the annual value of the property, which is determined
on the basis of gross rent at which the property can be reasonably expected to be
let out.
The Municipality currently charges property tax @ 17.50% per annum on the basis of
Annual Rental Value. The components of property tax are as below:
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