Section 85(3)(b) in The Gujarat Municipalities Act, 1963
(b)If the area to which the service, equipment and staff are so supplied, is within the local limits of any municipality gram panchayat or nagarpanchavat, such municipality, gram panchayat or as the case may be, nagar panchayat shall be liable to pay to the municipality the sum determined under clause (a) and shall pay the same to the municipality within such period as the Officer determining the sum directs. In any other case, the sum determined under clause (a) shall be paid to the municipality by the State Government.