Panchayat imposed tax on a trust

Ajay Kumar (Querist) 13 April 2012 This query is : Resolved
Respected Experts,

our local panchayat imposed Rs. 10 lakhs tax on our Foundation which is non profitable motive and serves to the general public (free education and conducting health checkups etc). We are maintaining a school which is only for poor and fully free of cost. It is very impossible to us to meet such amount. Is there any exemption / any relief under panchayat raj Act or any law?? Let me know how to proceed. Some political people warned us if we failed to pay the amount, our foundation will be abolished soon.

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