Section 265(2) in The Gujarat Panchayats Act, 1993
(2)A panchayat may subject to the sanction of the State Government, from time to time, enter into an agreement with any other panchayat, local body or with a combination of any such bodies, for the levy of octroi duty whereby the octroi duties respectively leviable by the bodies so contracting may be levied together instead of separately within the limits of the area subject to the control of the said bodies.
