Section 263(7) in Andhra Pradesh Municipalities Act, 1965
(7)Where a licence is granted or renewed under this section for the use of any place outside the municipal limits, the council shall pay to the Gram Panchayat; if any, having jurisdiction over such place or if there is no such Gram Panchayat, to such other authority as the Government may specify such portion of the fee received for the grant or renewal of the licence as the Government may, by general or special order, direct.