Article 276 of the Constitution of India authorizes the State Legislatures to levy taxes on professions, trades, callings and employments in their states. Initially, the article had stipulated Two Hundred and Fifty rupees per annum as the maximum limit of taxes leviable by a state.Â However, vide Sixtieth Amendment in the Constitution in 1988, this limit has been enhanced to Two Thousand and Five Hundred rupees per annum as the maximum amount of taxes payable by any one person to a State or to any one municipality, district board, local board or other local authority in the State.
State Specific Laws
In exercise of the powers vested under Article 276 of the Constitution, certain states have enacted laws to levy tax on Professions, Trades, Callings and Employments. The Acts governing tax on Professions, Trades, Callings and Employments in the respective states are listed herein below:
ü Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987
ü Assam Professions, Trade Callings and Employments Taxation Act, 1947
ü Chhattisgarh Professional Tax Act, 1995
ü Gujarat State Tax on Profession, Trades, Callings and Employments Act, 1976
ü Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976
ü Madhya Pradesh Professional Tax Act, 1995
ü Maharashtra State Tax on Professions, Trade Callings and Employments Act, 1975
ü Orissa State Tax on Professions and Trades, Callings and Employments Act, 2000
ü Punjab Finance Act, 1977 regulating Tax on Professions, Trades, Callings and Employments in Punjab
ü Rajasthan Tax on Professions, Trades, Callings and Employment Act, 2000
ü Sikkim Tax on Professions, Trades, Callings & Employments Act, 2006
ü Tamil Nadu Tax on Professions, Trades Callings, and Employment’s Act, 1992
ü West Bengal State Tax on Professions and Trades, Callings and Employments Act, 1979
Services We Offer
We are Professional Consultants and at VidyaSunil & Associates, we offer following services in relation to compliances under state specific laws on Professional Tax:
Providing day to day consultancy on matters pertaining to tax on Professions, Trades, Callings and Employments
Ø Registration / Enrolment under Professional Tax
Ø Assistance in deduction and payment of Professional Tax
Ø Preparation & Filing of periodical returns
Ø Assistance in recovery proceedings
Ø Assistance at the time of inspection of accounts & documents and search of premises
Ø Appeal to Appellate Authorities
Ø Compounding of Offences
Seeking to provide relief to lower middle-income groups, the State Budget for 2015-16 exempted persons drawing salary of less than Rs. 15,000 a month from payment of professional tax as against the present limit of Rs. 10,000 a month.
The age of senior citizens has been reduced from the present 65 years to 60 years to extend the benefit of exemption from payment of professional tax.
Tax exemption continues on paddy, rice, wheat, pulses and products of rice and wheat.
The budget has reduced VAT on mobile phone charger from 14.5 per cent to 5.5 per cent whether sold along with mobile phones in sealed packet or otherwise.
Chief Minister Siddaramaiah enhanced the prescribed period for disposal of appeal by the Karnataka Administrative Tribunal from the existing 180 days to 365 days from the date of stay order.
It proposed to amend the Karnataka Value Added Tax (KVAT) Act 2003, to widen the tax base through value addition to each point of sale.
The amendment to the KVAT Act is to provide deduction of tax at source, at applicable rate, out of the amounts payable to a dealer from whom goods are purchased by government department or local bodies.
It also made provision for dealers to file an appeal electronically against any order or proceedings affecting him under the provisions of the KVAT Act.
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