Section 124B in Tamil Nadu District Municipalities Act, 1920
124B. [ Constitution of Finance Commission. [Inserted by the Tamil Nadu District Municipalities (Amendment) Act 1994 (Tamil Nadu Act 25 of 1994).]
(1)The Finance Commission referred to in Article 243-1 of the Constitution shall review the financial position of the municipalities and [Third Grade Municipalities] and make recommendations to the Governor as to-(a)the principles which should govern,-(i)the distribution between the State Government and the municipalities and the [Third Grade Municipalities] [Substituted for the words 'Town Panchayat' by the Tamil Nadu District Municipalities (Amendment) Act, 2004 (Tamil Nadu Act 23 of 2004) w.e.f. 14th June 2004.] of the net proceeds of the taxes, duties, tolls and fees leviable by the State Government which may be divided between them and the allocation between the municipalities and the [Third Grade Municipalities] [Substituted for the words 'Town Panchayat' by the Tamil Nadu District Municipalities (Amendment) Act, 2004 (Tamil Nadu Act 23 of 2004) w.e.f. 14th June 2004.] of their respective shares of such proceeds;(ii)the determination of the taxes, duties, tolls and fees which may be assigned to or appropriate, by the municipalities and the [Third Grade Municipalities] [Substituted for the words 'Town Panchayat' by the Tamil Nadu District Municipalities (Amendment) Act, 2004 (Tamil Nadu Act 23 of 2004) w.e.f. 14th June 2004.] from the Consolidated Fund of the State;(iii)The grants-in-aid to the municipalities and the [Third Grade Municipalities] [Substituted for the words 'Town Panchayat' by the Tamil Nadu District Municipalities (Amendment) Act, 2004 (Tamil Nadu Act 23 of 2004) w.e.f. 14th June 2004.].(b)the measures needed to improve the financial position of the municipalities and the [Third Grade Municipalities] [Substituted for the words 'Town Panchayat' by the Tamil Nadu District Municipalities (Amendment) Act, 2004 (Tamil Nadu Act 23 of 2004) w.e.f. 14th June 2004.];(c)any other matter referred to the Finance Commission by the Governor in the interest of sound finance of the municipalities and the town panchayats.(2)The Governor shall cause every recommendation made by the Commission under this section together with an explanatory memorandum as to the action taken thereon to be laid before the Tamil Nadu Legislative Assembly.][Chapter-VI-A] [Chapter VI-A (Section 124C to 124K) was inserted by the Tamil Nadu Municipal Laws (Second Amendment) Act, 1998 (Tamil Nadu Act 59 of 1998).] Tax on Profession, Trade, Calling and Employment
