Section 206(2) in The Gujarat Panchayats Act, 1993
(2)(a)Where in the exercise of the powers under sub-section (1) a taluka panchayat imposes a tax or fee in any area within the jurisdiction of a village panchayat, such tax or fee shall be collected by the village panchayat concerned from those persons who are liable to pay the same under the rules made by the taluka panchayat in accordance with the provisions of section 215 as if it were a tax or fee imposed by the village panchayat concerned under provisions of this Act and shall be paid to the taluka panchayat at such time and in such manner as the taluka panchayat may specify.(b)[ (i) Such percentage not exceeding 50 per cent, of the gross collection of such tax or fee [(other than tax levied under Section 3 of the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976 (President's Act No. 11 of 1976) read with clause (ix-a) of sub-section (1) of Section 200)] [Clause (b) renumbered by 10 of 2008 (w.e.f. 01-04-2008).] in any financial year as the State Government may by general or special order determine shall not from part of the taluka fund but shall be assigned to the village panchayat in such manner as the taluka panchayat may determine.(ii)[ Total amount of gross collection of tax levied under Section 3 of the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976 (President's Act No. 11 of 1976) read with clause (ix-a) of sub-section (1) of Section 200, in any financial year in any area within the jurisdiction of a village panchayat shall not form part of the taluka fund, but shall be assigned to the concerned village panchayat.] [Sub-clause (ii) inserted by 10 of 2008 (w.e.f. 01-04-2008).](c)If any panchayat makes any default in the payment of any sum due in respect of a tax or fee within the time specified under clause (a), the provisions of section 211 shall mutatis mutandis is apply to such default and the taluka panchayat shall exercise the same powers as are exercisable by a district panchayat under that section.
