(1)The Governor shall, as soon as may be, after the commencement of this Act, but not later than 24th April 1994 and thereafter at the expiration of every fifth year, constitute a Finance Commission referred to in Article 243-I of the Constitution to review the financial position of the Panchayats and to make recommendations to the Governor as to -(a)the principles which should govern, -(i)the distribution between the State and Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the Government which may be divided between them and allocation between the District Panchayats, Panchayat Union Councils and Village Panchayats of their respective shares of such proceeds;(ii)the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Panchayats;(iii)the grants-in-aid to the Panchayats, from the Consolidated Fund of the State;(b)the measures needed to improve the financial position of the Panchayats;(c)any other matter referred to the Finance Commission by the Governor in the interest of sound finance of the Panchayats.(2)The Finance Commission shall consist of a Chairman and [five other members] [Substituted for the words 'Four other members' by Tamil Nadu Panchayats (Second Amendment) Act, 2006 (Tamil Nadu Act 6 of 2006) w.e.f 13-6-2006.].(3)The Chairman and members of Finance Commission shall possess such qualifications and shall be appointed in [such manner as may be prescribed] [See Rules issued in G.O. Ms. No. 162, Rural Development (C-11), dated 6th September, 1994.].(4)The Finance Commission shall determine their procedure.(5)The chairman or a member of the Finance Commission may resign his office by writing under his hand and addressed to the Finance Secretary to the Government, but he shall continue in office until his resignation is accepted by the Governor.(6)The casual vacancy created by the resignation of the member or Chairman under sub-section (5) or for any other reasons may be filled by the fresh appointment and a member or Chairman so appointed shall hold office for the remaining period for which the member or Chairman in whose place he was appointed would have held office.(7)The Finance Commission shall have the, following powers in the performance of its functions, namely: -(a)to call for any record from any officer or authority;(b)to summon any person to give evidence or produce records; and(c)such other powers as may be prescribed.(8)The Finance Commission shall prepare a report on the activities of the Commission and submit the same to the Government at the end of each financial year.(9)The Governor shall cause every recommendation made by the Finance Commission under this section together with an explanatory memorandum as to the action taken thereon to be placed on the table of the Legislative Assembly.[Chapter IX-A] [Chapter IX-A with sections 198-A to I were inserted by Tamil Nadu Panchayats (Seventh Amendment) Act, 1998 (Tamil Nadu Act 55 of 1998)] Tax On Profession, Trade, Calling and Employment
