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(1) The compensation payable to a local authority shall be provisionally calculated and released on monthly basis and shall be finally calculated for every financial year after the receipt of final revenue figures, as audited by the Local Fund Accounts Audit. (2) The total compensation payable for any financial year to any local authority shall be calculated as follows:- (a) The projected revenue for any financial year shall be calculated as per section 6 or, as the case may be, section 7. (b) The revenue accruable to the local authority shall be calculated and which shall be the revenue accruable on account of the taxes, fees or other sources of revenue assigned after the commencement of this Act to the local authority by the State Government and the revenue accruable on account of increase in rate of tax, amount of fees or increase in rate of other means of sources of revenue assigned before the commencement of this Act to the local authority by the State Government. Explanation.- For the purpose of this section, the revenue accruable to a local authority means the revenue which the State Government could have collected from the area within the jurisdiction of that local authority had the taxes, fees or other source of revenue not been assigned to that local authority and the State in this regard shall, specify such amount of revenue. (c) Total compensation payable in any financial year shall be the difference between the projected revenue for that financial year and the revenue accruable for that year to a local authority as specified in clause (b). Illustration I. Ist yearBase year revenue for the year 2016-17. 100Projected revenue for 2017-18 i.e. 8 growth.108.00Less amount of LBT/Octroi collected upto the date of implementation of this Act e.g. 1/4/2017 to 30/6/2017.20.00Less accruable revenue assigned for the period from 1/7/2017 to 31/3/2018.20.00Compensation payable.68.00II. Subsequent yearBase year revenue for the year 2016-17.100Projected revenue for 2018-19 i.e. 8 growth.116.64Less accruable revenue assigned.30.00Compensation payable.86.64 (3) The loss of revenue at the end of every month in any year for a local authority shall be calculated as follows :- (a) The projected revenue that could have been earned by the local authority for a monthly period of the respective financial year would be calculated on pro-rata basis as a percentage of the total projected revenue for any financial year, calculated as per section 6 or 7. Illustration.- If the projected revenue for any year calculated as per section 6 or 7 is Rs. 100, the projected revenue that could be earned for monthly period for the purpose of this sub-section shall be 100 X 1/12 = Rs. 08.33. (b) The provisional compensation payable for every three months period from the appointed date to any local authority shall be paid on or before the fifth of the relevant month in advance, in any financial year and shall be the amount as calculated in clause (a). The amount of provisional compensation so payable shall be credited in the bank account so designated by the Municipal Corporation of Brihan Mumbai on or before fifth of every month, in advance and failing which, the designated bank will be authorised to credit the account of Municipal Corporation of Brihan Mumbai by an amount of compensation payable for that month against the guarantee to be issued by the State Government. (c) In every fourth month, the provisional compensation payable to any local authority shall be the difference between projected revenue for the fourth month and revenue accruable to a local authority in the period of previous three months : Provided that, if the amount of revenue accruable to a local authority in a period of previous three months is more than the amount of provisional compensation payable in the fourth month, then the excess amount shall be reduced from the amount of compensation payable for the fifth month and so on. (4) In case of any difference between the final compensation amount payable to a local authority calculated as per provisions of sub-section (2) and the total provisional compensation amount released to a local authority, in the said financial year, as per sub-section (3), the same shall be adjusted against release of compensation to the local authority in the subsequent financial year, in the manner to be specified by the State Government.
<span style="margin-left:15px;"></span>(<i>1</i>) The compensation payable to a local authority shall be provisionally calculated and released on monthly basis and shall be finally calculated for every financial year after the receipt of final revenue figures, as audited by the Local Fund Accounts Audit. <br> <span style="margin-left:15px;"></span>(<i>2</i>) The total compensation payable for any financial year to any local authority shall be calculated as follows:- <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span>(<i>a</i>) The projected revenue for any financial year shall be calculated as per section 6 or, as the case may be, section 7. <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span><i>(b)</i> The revenue accruable to the local authority shall be calculated and which shall be the revenue accruable on account of the taxes, fees or other sources of revenue assigned after the commencement of this Act to the local authority by the State Government and the revenue accruable on account of increase in rate of tax, amount of fees or increase in rate of other means of sources of revenue assigned before the commencement of this Act to the local authority by the State Government. <br> <span style="margin-left:15px;"></span><i>Explanation</i>.- For the purpose of this section, the revenue accruable to a local authority means the revenue which the State Government could have collected from the area within the jurisdiction of that local authority had the taxes, fees or other source of revenue not been assigned to that local authority and the State in this regard shall, specify such amount of revenue. <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span>(<i>c</i>) Total compensation payable in any financial year shall be the difference between the projected revenue for that financial year and the revenue accruable for that year to a local authority as specified in clause <i>(b)</i>.<br> <table style="margin-left: auto; margin-right: auto;border-collapse: collapse;"><thead><tr><th id="tableincontent" style="text-align: center;min-width: 100px;padding: 10px;background-image: linear-gradient(to bottom, #fff 0, #fff 100%);">Illustration I. <br>Ist year</th></tr></thead><tbody><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Base year revenue for the year 2016-17. </td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">100</td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Projected revenue for 2017-18 i.e. 8 growth.</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">108.00</td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Less amount of LBT/Octroi collected upto the date of implementation of this Act e.g. 1/4/2017 to 30/6/2017.</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">20.00</td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Less accruable revenue assigned for the period from 1/7/2017 to 31/3/2018.</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">20.00</td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Compensation payable.</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">68.00</td></tr></tbody></table><table style="margin-left: auto; margin-right: auto;border-collapse: collapse;"><thead><tr><th id="tableincontent" style="text-align: center;min-width: 100px;padding: 10px;background-image: linear-gradient(to bottom, #fff 0, #fff 100%);">II. Subsequent year<center class="font1"></center></th></tr></thead><tbody><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Base year revenue for the year 2016-17.</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">100</td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Projected revenue for 2018-19 i.e. 8 growth.</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">116.64</td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Less accruable revenue assigned.</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">30.00</td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Compensation payable.</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">86.64</td></tr></tbody></table> <br> <span style="margin-left:15px;"></span>(<i>3</i>) The loss of revenue at the end of every month in any year for a local authority shall be calculated as follows :- <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span>(<i>a</i>) The projected revenue that could have been earned by the local authority for a monthly period of the respective financial year would be calculated on <i>pro-rata</i> basis as a percentage of the total projected revenue for any financial year, calculated as per section 6 or 7. <br> <span style="margin-left:15px;"></span><i>Illustration</i>.- <span style="margin-left:15px;"></span>If the projected revenue for any year calculated as per section 6 or 7 is Rs. 100, the projected revenue that could be earned for monthly period for the purpose of this sub-section shall be 100 X 1/12 = Rs. 08.33. <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span><i>(b)</i> The provisional compensation payable for every three months period from the appointed date to any local authority shall be paid on or before the fifth of the relevant month in advance, in any financial year and shall be the amount as calculated in clause (<i>a</i>). The amount of provisional compensation so payable shall be credited in the bank account so designated by the Municipal Corporation of Brihan Mumbai on or before fifth of every month, in advance and failing which, the designated bank will be authorised to credit the account of Municipal Corporation of Brihan Mumbai by an amount of compensation payable for that month against the guarantee to be issued by the State Government. <br> <span style="margin-left:15px;"></span><span style="margin-left:15px;"></span>(<i>c</i>) In every fourth month, the provisional compensation payable to any local authority shall be the difference between projected revenue for the fourth month and revenue accruable to a local authority in the period of previous three months : <br> <span style="margin-left:15px;"></span>Provided that, if the amount of revenue accruable to a local authority in a period of previous three months is more than the amount of provisional compensation payable in the fourth month, then the excess amount shall be reduced from the amount of compensation payable for the fifth month and so on. <br> <span style="margin-left:15px;"></span> (<i>4</i>) In case of any difference between the final compensation amount payable to a local authority calculated as per provisions of sub-section (<i>2</i>) and the total provisional compensation amount released to a local authority, in the said financial year, as per sub-section (<i>3</i>), the same shall be adjusted against release of compensation to the local authority in the subsequent financial year, in the manner to be specified by the State Government. <br>