KARNATAKA TAX ON PROFESSIONS, TRADES,CALLINGS AND EMPLOYMENTS ACT, 1976

35 of 1976

STATEMENT OF OBJECTS AND REASONS KARNATAKA ACT No. 8 OF 1981 Karnataka Gazette, Extraordinary, dated 26-3-1981 At present the Insurance Agents are liable to pay profession tax according to their standing in the profession and the places at which they carry on the profession. It was represented that the existing provisions cause hardship to them. On a careful consideration of the question, it is proposed to allow them to pay tax on a slab system, similar to that provided for salary or wage earners under the Act.

STATEMENT OF OBJECTS AND REASONS KARNATAKA ACT No. 13 OF 1982 Karnataka Gazette, Extraordinary, dated 30-3-1982 (As appended to at the time of introduction of the Bill) In the Budget Speech for the year 1982-83, the Hon'ble Minister for Finance and Tourism, has indicated several proposal in order to augment the revenue of the State. This Bill seeks to give effect to the said proposals. Opportunity is taken to make some other minor amendments,

STATEMENT OF OBJECTS AND REASONS KARNATAKA ACT No. 29 OF 1985 Karnataka Gazette, Extraordinary, dated 1-8-1985 In his Budget Speech for 1985-86 the Chief Minister indicated that salary or wage earners whose basic salary/wage is less than Rs. 1,200/- per month and dealers whose annual turnover is less than Rs. 75,000/- would be exempted from the payment of Professional Tax and that some more professions would be brought into the tax net. Hence this Bill.

STATEMENT OF OBJECTS AND REASONS Karnataka Act No. 13 of 1986 Karnataka Gazette, Extraordinary, dated 14-3-1986 Since June 1986, the work relating to Profession Tax in respect of dealers registered under the Karnataka Sales Tax Act, 1957, is entrusted to the respective Assessing Authorities. It would be convenient for the officers who collect Registration Fee under the Karnataka Sales Tax Act, 1957 during the month of April every year, to collect simultaneously, the Profession Tax also from the dealers. It would be convenient for the dealers also. Hence, it is proposed to advance the last date for payment in respect of the enrolled persons from 30th September of the year to 30th April of the year.

STATEMENT OF OBJECTS AND REASONS Karnataka Act No. 13 of 1987 Karnataka Gazette, Extraordinary, dated 27-3-1987 To give effect to the proposals made in the Budget Speech, it is proposed to amend the Karnataka Tax on Professions, Trades, Callings ana Employments Act, 1976. Hence the Bill.

STATEMENT OF OBJECTS AND REASONS Karnataka Act No. 15 of 1989 Karnataka Gazette, Extraordinary, dated 27-3-1989 To give effect to the proposals made in the Budget speech it is proposed to amend the Karnataka Tax on Professions, Trades, Callings ana Employments Act, 1976. Opportunity is also taken to amend Section 11 of the Act to exempt from payment of balance of interest payable upto 31st March, 1987 in respect of tax paid belatedly and also the interest payable on taxes due upto 31st March, 1987 if the taxes are paid on or before 30th June, 1989. Hence the Bill.

STATEMENT OF OBJECTS AND REASONS Karnataka Act No. 5 of 1990 Karnataka Gazette, Extraordinary, dated 29-3-1990 To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Opportunity is also taken to rationalise certain provisions of the said Act. Hence the Bill.

STATEMENT OF OBJECTS AND REASONS Karnataka Act No. 13 of 1991 Karnataka Gazette, Extraordinary, dated 25-3-1991 To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Hence the Bill.

STATEMENT OF OBJECTS AND REASONS Karnataka Act No. 5 of 1992 Karnataka Gazette, Extraordinary, dated 25-3-1992 To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Opportunity is also taken to ma ke consequential amendment to the said Act. Hence the Bill.

STATEMENT OF OBJECTS AND REASONS Karnataka Act No. 6 of 1995 (As appended to at the time of introduction) It is considered necessary to amend the Karnataka Sales Tax Act, 1957, the Karnataka Agricultural Income Tax Act, 1957, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Entertainments Tax Act, 1958, the Kamataka Tax on Entry of Goods Act, 1979, Karnataka Tax on Luxuries (Hotels and Lodging Houses) Act, 1979, the Mysore Betting Tax Act, 1932 and to give effect to the proposals made in the Budget speech and matters connected therewith. Hence the Bill.

STATEMENT OF OBJECTS AND REASONS Karnataka Act No. 5 of 1996 It is considered necessary to amend the Karnataka Tax on Luxuries (Hotels and Lodging Houses) Act, 1979, the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the Karnataka Entertainments Tax Act, 1958, the Karnataka Agricultural Income Tax Act, 1957, and the Karnataka Sales Tax Act, 1957 to give effect to the proposals made in the Budget Speech and matters connected therewith. Hence, the Bill.

STATEMENT OF OBJECTS AND REASONS Karnataka Act No. 7 of 1997 (As appended to at the time of introduction) It is considered necessary to amend the Karnataka Tax on Luxuries (Hotels, Lodging Houses and Marriage Halls) Act, 1979 (Karnataka Act 22 of 1979), the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976), the Karnataka Excise Act, 1966 (Karnataka Act 21 of 1966), the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958), the Karnataka Agricultural Income-tax Act, 1957 (Karnataka Act 22 of 1957), the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Mysore Betting Tax Act, 1932 (Mysore Act IX of 1932), and to give effect to the proposals made in the Budget Speech and matters connected therewith. Certain consequential amendments are also made. Hence the Bill.

STATEMENT OF OBJECTS AND REASONS KARNATAKA ACT No. 3 OF 1998 Karnataka Gazette, Extraordinary, dated 28-5-1998 It is considered necessary to amend the Karnataka Taxation Laws (Amendment) Act, 1997 (Karnataka Act 7of 1997), the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the Karnataka Tax on Luxuries (Hotels, Lodging Houses and Marriage Halls) Act, 1979 (Karnataka Act 22 of 1979), the Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976 (Karnataka Act 35 of 1976), the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958), the Mysore Betting Tax Act, 1932 (Mysore Act IX of 1932), the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) and to give effect to the proposals made in the Budget Speech and matters connected therewith. Certain consequential amendments are also made. Hence, the Bill,

STATEMENT OF OBJECTS AND REASONS [Karnataka Act No. 5 of 2001] (As appended to at the time of introduction) To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the Karnataka Tax on Luxuries Act, 1979 (Karnataka Act 22 of 1979), the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958), the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976) and the Karnataka Agricultural Income-tax Act, 1957 (Karnataka Act 22 of 1957), certain consequential amendments are also made. Hence the Bill.

An Act to provide for the levy and collection of tax on professions, trades, callings and employments in the State, Whereas, it is expedient to provide for the levy and collection of a tax on professions, trades, callings and employments; Be it enacted by the Karnataka State Legislature in the Twenty-seventh Year of the Republic of India is follows :-

Section 1 Short title, extent and commencement

(1) This Act may be called the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.

(2) It extends to the whole of the State of Karnataka.

(3) It shall be deemed to have come into force on the First day of April, 1976.

Section 2 Definitions

In this Act, unless the context otherwise requires,-

(a) "Assessee" means a person or employer by whom tax is payable under this Act;

(b) "Assessing authority" means a 11. Substituted for the expression "Assistant Commissioner of Professions Tax" by Act No. 11 of 1993, w.e.f. 1-4-1993 [Deputy Commissioner of Professions Tax, Assistant Commissioner of Professions Tax] or 22. Substituted for the expression "Assistant Profession Tax Officer" by Act No. 5 of 1993,w.e.f. 4-2-1993. [Profession Tax Officer] or any other officer authorised by the State Government in this behalf to make any assessment by or under this Act;

(c) "Bangalore Urban Agglomeration" means the area specified as such in Schedule I to the Urban Land (Ceiling and Regulations) Act, 1976 (Central Act 33 of 1976);

(d) "Commissioner" means the Commissioner of Profession Tax appointed under Section 14 and includes a 33. Substituted for the expression "Joint Commissioner" by Act No. 5 of 1993, w.e.f. 4-2-1993. [Additional Commissioner] of Profession Tax (if any) appointed under that Section;

(e) " 44. Substituted for the expression "Deputy Commissioner" by Act No. 5 of 1993, w.e.f.4-2-1993. [Joint Commissioner]" means any person appointed to be a 55. Substituted for the expression "Deputy Commissioner" by Act No. 5 of 1993, w.e.f.4-2-1993. [Joint Commissioner] of Profession Tax under Section 14;

(f) "Employer", in relation to an employee earning any salary or wages on regular basis under him, means the person or the officer who is responsible for the disbursement of such salary or wages and includes the head of the office or any establishment as well as the manager or agent of the employer;

(g) "Month" means a calendar month;

(h) "Person" means any person who is engaged in any profession, trade, calling or employment in the State of Karnataka and includes a Hindu Undivided Family, firm, company, corporation or other corporate body, any society, club or association, so engaged but does not include any person who earns wages on a casual basis;

(i) "Profession Tax" or "Tax" means a tax leviable under the provisions of this Act;

11. The words, letter and figures "referred to in SI. Nos. 2,2-C and 8 of the Schedule" omitted by Act No. 5 of 1996. w.e.f. 1-4-1996. [(j) "Salary" or "Wage" includes pay or wage, dearness allowance and all other remunerations received or receivable by any person including any amount received by way of arrears of salary or bonus by whatever name called whether payable in cash or kind and also includes perquisites and profits in lieu of salary as defined in S.17 of the Income Tax Act, 1961.

Explanation.-

(i) Where 'bonus' by whatever name called is received in part or full, then such bonus shall be spread over for twelve months of the year or to such number of months the bonus relates for purposes of computation of 'Salary' or 'Wage' for such months.

(ii) Where arrears of salary is received in part or full, then such arrears shall be spread over for the relevant months for which it relates for purposes of computation of 'Salary' or 'Wage' for such months].

(k) "Schedule" means the Schedule appended to this Act;

(l) "Tribunal" means the Karnataka Appellate Tribunal constituted under the Karnataka Appellate Tribunal Act, 1976 (Karnataka Act 10 of 1976);

(m) "Year" means the year commencing on the First day of April.

Section 3 Levy and charge of tax

(1) There shall be levied and collected a tax on professions, trades, callings and employments for the benefit of the State.

(2) Every person who exercises any profession or calling or is engaged in any trade or holds any appointment, public or private, or is employed in any manner in the State, specified in the second column of the Schedule, shall be liable to pay to the State Government the tax at the rate mentioned in the corresponding entry in the third column of the said Schedule:

Provided that no tax shall be payable by persons 11. The words, letter and figures "referred to in SI. Nos. 2,2-C and 8 of the Schedule" omitted by Act No. 5 of 1996. w.e.f. 1-4-1996. [x x x x x] who have attained sixty-five years of age:

22. Second proviso inserted by Act No. 8 of 1981, w.e.f. 4-4-1981. [Provided further that the levy and collection of tax from any person under this section shall be subject to the restriction specified in clause (2) of Art.276 of the Constitution of India:]

33. Third proviso inserted by Act No. 26 of 1982, w.e.f. 27-7-1982. [Provided further that, no tax shall be payable by a person in respect of any year if the period during which he exercises such profession or calling or is engaged in the trade or holds the appointment or is employed does not exceed one hundred and twenty days in that year.]

Section 3A Levy of cess

[11. Section 3-A omitted by Act No. 3 of 1998, w.e.f. 1-4-1998. -x x x x x.

Section 4 Employer's liability to deduct and pay tax on behalf of employees

The tax payable under this Act by any person earning a salary or wage, shall be deducted by his employer from the salary or wage payable to such person before such salary or wage is paid to him, and such employer shall, irrespective of whether such deduction has been made or not when the salary or wage is paid to such persons be liable to pay tax on behalf of all such persons:

Provided that, if the employer is an officer of Government the State Government may, notwithstanding anything contained in this Act, prescribed by rules the manner in which such employer shall discharge the said liability.

Section 5 Registration and enrolment

(1) Every employer (not being an officer of Government) liable to pay tax under Section 4 shall obtain a certificate of registration from the assessing authority in the prescribed manner.

(2) Every person liable to pay tax under this Act (other than a person earning salary or wages, in respect of whom the tax is payable by his employer), shall obtain a certificate of enrolment from the assessing authority in the prescribed manner.

(3) Every employer or person required to obtain a certificate of registration or enrolment shall, with in ninety days from the date of commencement of this Act or, if he was not engaged in any profession, trade, calling or employment on that date, within thirty days from the date of commencement of his profession, trade, calling or employment, or in respect of a person referred to in sub-section (2) within thirty days of his becoming liable to pay tax at a rate higher or lower than the one mentioned in his certificate of enrolment, apply for a certificate of registration or enrolment, or revised certificate of enrolment, as the case may be, to the assessing authority in the prescribed form and the assessing authority shall, after such inquiry as it may deem fit within thirty days of the receipt of the application (which

11. Proviso substituted by Act No. 18 of 1994, w.e.f. 1-4-1994. [Provided that where after the issue of the enrolment certificate, the tax payable under this Act is revised, the person liable to pay tax under this Act shall, notwithstanding that the enrolment certificate is not revised, pay tax at such revised rates from the date of such revision.]

(4) The assessing authority shall mention in every certificate of enrolment, the amount of tax payable by the holder according to the Schedule and the date by which it shall be paid, and such certificate shall serve as a notice of demand for purposes of Section 12.

22. Sub-section (5) omitted by Act No. 18 of 1994, w.e.f. 1-4-1994. [(5) x x x x x.]

(6) Where an employer or a person liable to registration or enrolment has deliberately given false information in any application submitted under this section, the assessing authority may, after giving him a reasonable opportunity of being heard, impose a penalty not exceeding rupees one thousand.

Section 6 Return

11. Sections 6 and 6-A substituted for Section 6 by Act No. 6 of 1995, w.e.f. 1-4-1995.

(1) Notwithstanding anything contained in Section 6A, every employer registered under this Act, shall furnish to the assessing authority within sixty days of the expiry of a year, a return in the prescribed form showing therein the salaries and wages paid by him and the amount of tax deducted by him in respect thereof during the preceding year.

(2) Before any employer submits any return under sub-section (1), he shall, in the prescribed manner, pay in advance the full amount of tax payable by him on the basis of such return as reduced by any tax already paid under Section 6A and shall furnish along with the return satisfactory proof of the payment of such tax and a return without such proof of payment shall not be deemed to have been filed. After the final assessment is made, the amount of tax so paid shall be deemed to have been paid towards the lax finally assessed.

Section 6A Payment of tax in advance

(1) Every employer registered under this Act, shall furnish to the assessing authority within twenty days of expiry of a month, a statement in the prescribed form showing therein the salary and wages paid by him and the amount of tax deducted by him in respect thereof during the month immediately preceding that month:

22. Proviso and Explanation inserted by Act No. 5 of 1996, w.e.f. 1-4-1996. [Provided that where the a mount of tax deducted in a month is not more than rupees five thousand, the registered employer shall furnish such statement within twenty days of expiry of a quarter showing therein the salary and wages paid by him and the amount of tax deducted by him in respect thereof during the immediately precedings that quarter.

Explanation.-For the purpose of this proviso, "Quarter" means the period of three months ending on the 31st day of May, 31st day of August, 30th day of November and 28th day or 29th day of February.]

(2) Every such statement shall be accompanied by a treasury challan in proof of payment of the full amount of tax due according to the statement, and a statement without such proof of payment shall not be deemed to have been duly filed and the amount so payable shall for the purpose of Section 11 and Section 13 be deemed to be tax due under this Act from such employer.

(3) If no such statement is submitted by any employer under sub-section (1) before the date specified therein or if the statement submitted by him appears to the assessing authority to be incorrect or incomplete, the assessing authority may assess the employer provisionally for that month 11. Inserted by Act No. 5 of 1996, w.e.f. 1-4-1996. [or for that quarter, as the case may be] to the best of his judgment, recording the reasons for such assessment and proceed to demand and collect the tax on the basis of such assessment:

Provided that before taking action under sub-section 22. Substituted for the brackets and figure "(1)" by Act No. 5 of 1996, v.e.f. 1-4-1996. [(3)] the employer shall be given an opportunity of being heard.]

Section 7 Assessment of employer or person

33. Inserted by Act No. 18 of 1994, w.e.f. 1-4-1994. .-

(1) If the assessing authority is satisfied that the return filed by any employer is correct and complete, it shall accept the return.

(2)

(a) If the assessing authority is not satisfied that the return filed by any employer is correct and complete, it shall serve upon the employer a notice requiring him to attend in person or through an authorised representative on a date specified in the notice and to produce accounts and papers in support of the return.

(b) The assessing authority shall, on examination of accounts and papers, assess the amount of tax payable by the employer.

(c) If the employer fails to comply with the terms of the notice or if in the opinion of the assessing authority the accounts and papers are incorrect or incomplete or unreliable, the said authority shall, after such enquiry as it deems fit or otherwise, assess the tax due to the best of its judgment.

44. Sub-section (3) substituted by Act No. 18 of 1994, w.e.f. 1-4-1994. [(3) If an employer has failed to get himself registered or being registered, has failed to file any return or a person has failed to get himself enrolled under Section 5, the assessing authority shall, after giving the employer or the person, as the case may be, a reasonable opportunity of making representation and after holding such enquiry as it deems fit or otherwise, pass an order assessing the amount of tax due to the best of its judgment.]

(3-A) When making an assessment under sub-section (3), the assessing authority may also direct the employer or the person, as the case may be, to pay in addition to the tax assessed a penalty equal to the amount of tax assessed under sub-section (3).]

(4) The amount of tax so assessed 22. Inserted by Act No. 18 of 1994, w.el 1-4-1994. [or the amount of penalty so levied] shall be paid within fifteen days of receipt of the notice of demand from the assessing authority.

(5) If within one month from the service of a notice of demand under sub-section (4), the 33. Substituted for the word "employer" by Act No. 18 of 1994, w.e,f. 1-4-1994. [employer or person] satisfies the assessing authority that he was prevented by sufficient cause from getting himself registered or, from filing the return under Section 644. Inserted by Act No. 18 of 1994, w.e.f. 1-4-1994. [or from getting himself enrolled under Section 5] as the case may be, the assessing authority shall cancel the assessment made under sub-section (3) and proceed to make a fresh assessment in accordance with the provisions of this section as the circumstances of the case may warrant.

Section 8 Rectification of mistakes

(1) With a view to rectify any mistake apparent from the record, an authority under this Act, may, at any time within a period of four years from the date of an order passed by it, amend such order:

Provided that an amendment which has the effect of enhancing an assessment or otherwise increasing the liability of the employer or person, as the case may be, shall not be made unless the authority concerned has given notice to the employer or the person of its intention to do so and has given the employer or the person an opportunity of making representation.

(2) An order passed under sub-section (1), shall be deemed to be an order passed under the same provision of law under which the original order, the mistake in which was rectified, had been passed.

Section 9 Assessment of escaped tax

(1) If for any reason any tax payable under this Act has escaped assessment or has been assessed at a rate lower than the rate at which it is assessable the assessing authority may at any time within four years from the end of the year to which the tax relates, proceed to assess or reassess the tax, as the case may be, to the best of its judgment after issuing a notice to the employer or the person concerned and after making such enquiry as it considers necessary:

Provided that the tax shall be charged at the rate at which it would have been charged if such tax had not escaped assessment or, as the case may be, had not been assessed at a rate lower man the rate at which it was assessable.

(2) In making an assessment under sub-section (1), the assessing authority, if it is satisfied that the escape from assessment was due to wilful non-disclosure of information or attempt at evading the tax by the employer or the person direct such employer or the person to pay, in addition to the tax assessed under sub-section (1), a penalty not exceeding one and half time the tax so assessed:

Provided that no penalty under this sub-section shall be imposed unless the employer or the person affected has had a reasonable opportunity of showing cause against such imposition.

Section 10 Payment of tax by enrolled persons

(1) The tax payable under this Act by enrolled persons shall be paid in the prescribed manner.

(2) The amount of tax due from enrolled persons for each year as specified in their enrolment certificates shall be paid,-

11. Clauses (a) and (b) substituted by Act No. 13 of 1986, w.e.f. 2-5-1986. [(a) in respect of a person who stands enrolled before the commencement of a year. Before the 30th April of that y

(b) in respect of a person who is enrolled after the commencement of a year. Within one month from the date of enrolment.

Section 11 Consequences of failure to deduct or to pay tax

(1) If an employer (not being an officer of Government) does not deduct the tax at the time of payment of salary or wage or after deducting fails to pay the tax as required by or under this Act, he shall without prejudice to any other consequences and liabilities which he may incur, be deemed to be an assessee in default in respect of the tax.

(2) Without prejudice to the provisions of sub-section (1), if an employer referred to in sub-section (1) does not deduct the tax at the time of payment of the salary or wage, or after deducting fails to pay the tax as required by or under this Act, he shall be liable to pay simple interest at two per cent of the amount of the tax due for each month or part thereof for the period for which the tax remains unpaid.

(3) If an enrolled person fails to pay the tax as required by or under this Act, he shall be liable to pay simple interest at the rate and in the manner laid down in sub-section (2).

22. Sub-section (4) inserted by Act No. 15 of 1989, w.e.f.. 1-4-1989. [(4) Notwithstanding anything contained in sub-sections (2) and (3).-

(i) the balance of interest payable upto 31st March, 1987, in respect of tax paid belatedly shall not be collected.

(ii) any interest mat has become payable in respect of tax due as on 31st March, 1987, shall not be collected provided such tax is paid in full on or before 30th June, 1989.

Section 12 Penalty for non-payment of tax

If an enrolled person or a registered employer fails, without reasonable cause, to make payment of any amount of tax within the required time or date as specified in the notice of demand the assessing authority may, after giving him a reasonable opportunity of making representation, impose upon him a penalty not exceeding fifty per cent of the amount of tax due. This penalty shall be in addition to the interest payable under sub-section (2) or (3) of Section 11.

Section 13 Recovery of tax, etc

11. Section 13 substituted by Act No. 1 of 1985, w.e.f. 9-1-1985. Any tax, penalty, interest or other amount due under this Act from an employer or other person may, without prejudice to any other mode of collection, be recovered,-

(a) as if it were an al rear of land revenue, or

(b) on application to any Magistrate, by such Magistrate, as if it were a fine imposed by him.

Section 14 Authorities for implementation of the Act

(1) For carrying out the purposes of this Act, the State Government may appoint.-

(i) an officer to be the Commissioner of Profession Tax for the whole of the State of Karnataka;

(ii) one or more officers to be the 22. Substituted for the expressioin "Joint Commissioners" by Act No. 5 of 1993, w.e.f. 4-2-1993. [Additional Commissioners] of Profession Tax as the State Government may think necessary;

(iii) such number of 33. Substituted for the expression "Deputy Commissioners" by Act No. 5 of 1993, w.e.f.4-2-1993. [Joint Commissioners] of Profession Tax, 44. Substituted for the expression "Profession Tax Officers" by Act No. 5 of 1993, w.e.f.4-2-1993. [Assistant Commissioners of Profession Tax], 55. Substituted for the expression "Assistant Profession Tax Officers" by Act No. 5 of 1993,w.e.f. 4-2-1993. [Profession Tax Officers] and other officers and persons (with such designations) as the State Government may think necessary.

(2)

(i) All officers and persons employed in the execution of this Act shall be subject to the general supervision and control of the State Government and the Commissioner;

(ii) The 66. Substituted for the expression "Deputy Commissioners" by Act No. 5 of 1993, w.e.f.4-2-1993. [Joint Commissioners] shall perform their functions and exercise their powers conferred on them by or under this Act in such areas as the State Government may direct;

(iii) The 77. Substituted for the expression "Assistant Profession Tax Officers" by Act No. 5 of 1993,w.e.f. 4-2-1993. [Profession Tax Officers]and the 88. Substituted for the expression "Profession Tax Officers" by Act No. 5 of 1993, w.e.f.4-2-1993. [Assistant

(3) All officers appointed under this Act shall be subordinate to the Commissioner.

Section 14A Instructions to subordinate authorities

11. Substituted for the word and figures "17 and 18" by Act No. 1 of 1985, w.e.f. 9-1-1985

(1) The State Government and the Commissioner may, from time to time, issue such orders, instructions and directions to all Officers and persons employed in the execution of this Act as they may deem fit for the administration of this Act, and all such Officers and persons shall observe and follow such orders, instructions and directions of the State Government and the Commissioner:

Provided that no such orders, instructions or directions shall be issued so as to interfere with the discret on of any Appellate Authority in the exercise of its appellate functions.

(2) Without prejudice to the generality of the foregoing power, the Commissioner may, on his own motion, or on an application by a person who has obtained a certificate of enrolment or an employer who has obtained a certificate of registration under this Act, if he considers it necessary or expedient so to do, for the purpose of maintaining uniformity in the work of assessments and collection of revenue, clarify the rate of tax payable under this Act and all Officers and persons employed in the execution of this Act shall observe and follow such clarification:

Provided that no such application shall be entertained unless it is accompanied by proof of payment of such fee, paid in such manner, as may be prescribed.

(3) Any Officers and persons employed in the execution of this Act, shall observe and follow such administrative instructions as may be issued to him for his guidance by the Joint Commissioner within whose jurisdiction he performs his functions.]

Section 15 Appointment of Collecting, Agents

(1) For carrying out the purposes of this Act, the State Government may, at its discretion, appoint any Government Department or Officer, or a Municipal Corporation, Municipality or Taluk Board (hereinafte called 'Collecting Agent') as its agent responsible for collection of the tax under this Act from such persons or class of persons as may be prescribed; and thereupon, it shall be the duty of such Collecting Agent to carry out in such manner as may be prescribed, such functions under this Act, as may be prescribed and to render full and complete account of the tax levied and collected to the Commissioner in such manner and at such time as that oi ficer may require.

(2) Any officer authorised by the Collecting Agent in this behalf shall have for the purposes of levy and collection of the tax all the powers of the assessing authority and such other powers as may be prescribed.

(3) A Municipal Corporation, Municipal Council or Taluk Board appointed as agent to carry out the purposes of this Act under sub-section (1) shall be paid such collection charges as may be prescribed by the State Government after consultation with the local authority concerned.

(4) It shall be lawful for the Commissioner or an officer duly authorised by him, to have access to and to require production and examination of books, registers, accounts or documents maintained or required to be maintained by the Collecting Agent for the purposes of this Act and the Collecting Agent shall, whenever called upon to do so produce such books, registers, accounts or documents for inspection by the Commissioner or by the authorised officer.

Section 16 Appeals

(1) Any employer, not being an officer of Government or any person aggrieved by an order of an assessing authority may appeal to the 11. Substituted for the word and figures "17 and 18" by Act No. 1 of 1985, w.e.f. 9-1-1985 [Joint Commissioner] of the area concerned:

Provided that no appeal shall lie against an order passed under sub-section (3) of Section 7.

(2) The appeal shall be preferred within sixty days of receipt of the demand notice or the order against which the appeal is intended:

Provided that the Appellate Authority may for sufficient cause shown admit an appeal preferred alter the period of sixty days aforesaid.

(3) No appeal shall be entertained unless the amount of tax or penalty or interest not disputed in the appeal has been paid in full.

(4) The appeal shall be in the prescribed form and shall be verified in the prescribed manner.

(5) In disposing of an appeal, the Appellate Authority may, after giving the appellant a reasonable opportunity of being heard-

(a) in the case of an order of assessment of penalty-

(i) confirm, reduce, enhance or annul the assessment or penalty or both;

(ii) set aside the assessment and direct the assessing authority to make a fresh assessment after such further enquiry as may be directed; or

(iii) pass such other orders as it may mink fit;

(b) in the case of any other order, confirm, cancel or vary such order.

(6) Every order passed on appeal under this section shall subject to the provisions of Section 811. Substituted for the word and figures "17 and 18" by Act No. 1 of 1985, w.e.f. 9-1-1985 ,Section 17, Section 18 and Section 18Abe final.

Section 17 Appeal to the Appellate Tribunal

(1) Any employer or any person objecting to an order passed by the 22. Substituted for the expression "Deputy Commissioner" by Act No. 5 of 1993, w.e.f.4-2-1993. [Joint Commissioner] under Section 16 may appeal to the Tribunal within sixty days from the date on which the order was communicated to him.

(2) The provisions of the Karnataka Appellate Tribunal Act, 1976 (Karnataka Act 10 of 1976) shall be applicable to all appeals preferred to the Tribunal under sub-section (1).

Section 18 Revision by Commissioner,   Additional Commissioner, joint Commissioner and Deputy Commissioner

33. Inserted by Act No. 11 of 1993, w.e.f. 1-4-1993. 44. Sub-sections (1) to (6) substituted for sub-sections (1) to (3) by Act No. 11 of 1993, w.e.f.1-4-1993. [(1) The Deputy Commissioner may, on his own motion call for and examine the record of any proceeding under this Act, and if he consists that any order passed therein by any officer who is not above the rank of Profession Tax Officer, is erroneous insofar as it is prejudicial to the interests of revenue, he may, if necessary, stay the operation of such order for such period as he deems fit and after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment or cancelling the assessment or directing a fresh assessment.

(2) The Joint Commissioner may, on his own motion call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by any assessing authority subordinate to him is erroneous insofar as it is prejudice to the interest of revenue he may, if necessary, stay the operation of such order for such period as he deems fit and after giving the assesses an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment or cancelling the assessment or directing a fresh assessment.

(3) The Additional Commissioner may on his own motion call for and examine the record of any proceeding under this Act, and if he "considers that any order passed therein by any officer who is not above the rank of a joint Commissioner is erroneous insofar as it is prejudicial to the interests of revenue, he may, if necessary, stay the operation of such order for such period as he deems fit and after giving the assessee an opportunity of being

(4) The Commissioner may on his own motion call for and examine the record of any proceeding under this Act and if he considers that any order passed therein by any officer subordinate to him is erroneous insofar as it is prejudicial to the interests of revenue, he may, if necessary, stay the operation of such order for such period as he deems fit and after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary pass such orders thereon as the circumstances of the case justify including an order enhancing or modifying the assessment or cancelling the assessment or directing a fresh assessment.

(5) The power under sub-sactions (1), (2), (3) and (4) shall be exercisable only within a period of four years from the date of the order sought to be revised was passed.

Explanation.-In computing the period of limitation for the purpose of this sub-section, any period during which any proceeding under this section is stayed by an order or injunction of any Court shall be excluded.

(6) Any order passed,-

(i) by the Commissioner under sub-section (4) shall, subject to Section 8 and Section 18A, be final;

(ii) by the Additional Commissioner under sub-sections (3) shall, subject to Section 8, sub-section (4) of this section and Section 18A, be final;

(iii) by the Joint Commissioner, under sub-section (2) shall, subject to Section 8, Section 17, sub-sections (3) and (4) of this section and Section 18A, be final; and

(iv) by the Deputy Commissioner under sub-section (1) shall, subject to Section 8, Section 17, sub-sections (3) and (4) of this section and Section 18A, be final.]

11. Existing sub-sections (4), (5) and (6) renumbered as sub-sections (7), (8) and (9) by Act No.11 of 1993, w.e.f. 1-4-1993. [(7)] Any employer, not being an officer of Government or any person objecting to an order passed under 22. Substituted for the words, brackets and figure "sub-section (1)" by Act No, 11 of 1993, w.e.f.1-4-1993. [sub-sections (3) and (4)] may appeal to the High Court within sixty days from the date on which the order was . communicated to him:

Provided that the High Court may admit an appeal preferred after the

(8) The appeal shall be in the prescribed form, shall be verified in the prescribed manner and shall be accompanied by a fee of one hundred rupees.

(9) The High Court shall, after giving both parties to the appeal a reasonable opportunity of being heard, pass such order thereon as it thinks fit.

Section 18A Revision by High Court in certain cases

11. Section 18-A inserted by Act No. 1 of 1985, w.e.f. 9-1-1985. (1) Within sixty days from the date on which an order under Section 17 of the Act was communicated to him, the appellant or the respondent may prefer a petition to the High Court against the order on the ground that the Appellate Tribunal has either failed to decide or decided erroneously any question of law:

Provided that the High Court may admit the petition preferred after the period of sixty days aforesaid if it is satisfied that the petitioner had sufficient cause for not preferring the petition within that period.

(2) The petition shall be in the prescribed form and shall, when it is preferred by any person other than the State Government, be accompanied by a fee of fifty rupees.

(3) If the High Court, on persuing the petition, considers that there is no sufficient ground for interfering, it may dismiss the petition summarily:

Provided that no petition shall be dismissed unless the petitioner has had a reasonable opportunity of being heard in support thereof.

(4)

(a) If the High Court does not dismiss the petition summarily, it shall, after giving both the parties to the petition a reasonable opportunity of being heard, determine the question or questions of law raised and either reverse, affirm or amend the order against which the petition was preferred or remit the matter to the Appellate; Tribunal with the opinion of the High Court on the question or questions of law raised or pass such other order in relation to the matter as the High Court thinks fit.

(b) Where the High Court remits the matter to the Appellate Tribunal under clause (a) with its opinion on the questions of law raised, the latter shall amend the order passed by it, in conformity with such opinion.

(5) Before passing an order under sub-section (4), the High Court may, if it considers necessary so to do, remit the petition to the Appellate Tribunal

(6) Notwithstanding that a petition has been preferred under sub-section (1), the tax shall be paid in accordance with the assessment made in the case:

Provided that if as a result of the petition, any change becomes necessary in such assessment, the High Court may authorise the assessing authority to amend the assessment and the assessing authority shall amend the assessment accordingly and thereupon the amount paid in excess by the assessee shall be refunded to him without interest or the additional amount of tax due from him shall be collected in accordance with the provisions of the Act, as the case may be.

(7)

(a) The High Court may, on the application of either party to the petition, review any order passed by it under sub-section (4) on the basis of facts which were not before it when it passed the order.

(b) The application for review shall be preferred within ninety days from the date of communication of the order sought to be reviewed and shall be in such form and such manner as may be prescribed, and shall, where it is preferred by any person other than the State Government shall be accompanied by a fee of fifty rupees.

(8) With a view to rectifying any mistake apparent from the record, the High Court may, at any time within five years from the date of the order passed by it amend such order:

Provided that no order under this sub-section shall be made without giving the parties affected a reasonable opportunity of being heard.

(9) In respect of every petition preferred under this section, the costs shall be in the discretion of the High Court.]

Section 19 Accounts

(1) If the assessing authority is satisfied that the books of account and other documents maintained by an employer in the normal course of his business are no! adequate for verification of the returns filed by the employer under this Act, it shall be lawful for it to direct the employer to maintain the books of account or other documents in such manner as it may in writing direct and thereupon the employer shall within the time specified therein maintain such books of accounts or other documents accordingly.

11. Sub-section (1-A) inserted by Act No. 5 of 1992, w.e.f. 1-4-1992. [(1A) The books of account and other documents maintained by an employer under sub-section (1), shall be preserved for a period of five years from the close of the year to which they relate.]

(2) Where an employer wilfully fails to maintain the book of accounts or other documents as directed under sub-section (1) 11. Substituted for the words "a Taluk Board" by Act No. 26 of 1982, w.e.f. 27-7-1982. [or to preserve the books of account and other documents as specified under sub-section (1-A)], the assessing authority may, after giving him an opportunity to make representation, impose a penalty not exceeding rupees five for each day of delay.

Section 20 Special mode of recovery

(1) Notwithstanding anything contained in any law or contract to the contrary, the assessing authority may, at any time or from time to time, by notice in writing, a copy of which shall be forwarded to the assessee at his last address known to the assessing authority require-

(a) any person from whom any amount or money is due or may become due to such assessee on whom a notice of demand has been served under this Act, or

(b) any person who holds or may subsequently hold money for or on account of such assessee, to pay the assessing authority either forthwith upon the money becoming due or being such or at or within the time specified in the notice (but not before the money becomes due or is held as aforesaid) so much of the money as if sufficient to pay the amount due by the assessee in respect of. the arrears of tax, penalty or interest under this Act, or the whole of the money when it is equal to or less than that amount.

Explanation.-For the purpose of this section the amount of money due to an assessee from, or money held for or on account of an assessee by, any person shall be calculated after deducting therefrom such claims (if any) lawfully subsisting or as may have fallen due for payment by such assessee to such person.

(2) The assessing authority may at any time or from time to time amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.

(3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the assessee, and the receipt of the assessing authority shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt.

(4) Any person discharging any liability to the assessee after receipt of the notice referred to in this section shall be personally liable to the assessing authority to the extent of the liability discharged or the extent of the liability of the assessee for tax, penalty or interest, whichever is less.

(5) Where a person to whom a notice under this section is sent proves to the satisfaction of the assessing authority that the sum demanded or any part thereof is not due to the assessee or that he does not hold any money for or on account of the assessee, then nothing contained in this section shall be deemed to require such person to pay any such sum or part thereof, to the assessing authority.

(6) Any amount of money which a person is required to pay the assessing authority or for which he is personally liable to the assessing authority under this section, shall, if it remains unpaid be recoverable as an arrear of land revenue.

Section 21 Production and inspection of accounts and documents and search of premises

Any authority under this Act may inspect and search any premises, where any profession, trade, calling or employment liable to taxation under this Act is carried on or is suspected to be carried on and may require production and examination of books, registers, accounts or documents relating thereto and may seize such books, registers, accounts or documents as may be necessary:

Provided that, if the said, authority removes from the said premises any book, register, account or document, it shall give to the person in-charge of the place, a receipt describing the book, register, account or document so removed by it and retain the same only for so long as may be necessary for the purposes of examination thereof or for a prosecution.

Section 22 Refunds

Any person who has paid any tax or penalty or interest or fee in excess of the amount due under this Act may apply to the assessing authority for a refund or adjustment of such amount towards future tax and the amount paid in excess shall be refunded or adjusted accordingly.

Section 23 Offences and penalties

Any person or employer who, without sufficient cause, fails to comply with any of the provisions of this Act or the rules framed thereunder shall, on conviction, be punished with fine which may extend to five thousand rupees and when the offence is a continuing one, with fine which may extend to fifty rupees per day of such continuance,

Section 24 Offences by companies

(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in-charge of and was responsible for the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishn lent, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.-For the purposes of this section-

(a) "Company" means any body corporate and includes a firm or other association of individuals; and

(b) "Director" in relation to a firm means a partner in the firm.

Section 25 Power to transfer proceedings

The Commissioner may by order in writing transfer any proceedings or class of proceedings under any provision of this Act from any officer to any other officer not lower in status than the former,

Explanation.-In this section, the word "proceedings" in relation to any assessee whose name is specified in any order issued thereunder, means all proceedings under this Act in respect of any year, which may be pending on the date of such order or which may have been completed on or before such date, and includes also all proceedings under this Act which may be commenced after the date of such order in respect of any year in relation to such assessee.

Section 26 Compounding of offences

(1) Subject to such conditions as may be prescribed, the assessing authority may, either before or after the institution of prosecution, permit any person charged with the offence to compound the offence on payment of such sum, not exceeding double the amount of tax to which the offence relates, as the assessing authority may determine.

(2) On payment of such sum, as may be determined by the assessing authority under sub-section (1), no further proceedings shall be taken against the person in respect of the same offence.

Section 27 Powers to enforce attendance, etc

All authorities under this Act shall, for the purposes of this Act, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 while trying a suit in respect of enforcing the attendance of and examining any person on oath or affirmation or for compelling the production of any document.

Section 28 Bar of suits, etc

(1) No suit shall lie in any Civil Court to set aside or modify any assessment made or order passed under this Act.

(2) No suit, prosecution, or other legal proceedings shall lie against any authority under this Act or against any employer for anything done or intended to be done in good faith under this Act or the rules framed thereunder.

Section 28A Appearance before any authority in proceedings

11. Substituted for the words "a Taluk Board" by Act No. 26 of 1982, w.e.f. 27-7-1982. Any person who is entitled to appear before any authority, other than the High Court, in connection with any proceedings under this Act, may be represented before such authority,-

(a) by a legal practitioner; or

(b) by a Chartered Accountant; or

(c) by a Sales Tax Practitioner enrolled as such under the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957).]

Section 29 Power to exempt

[(1)] The State Government may, by notification, make an exemption or reduction in the rate of tax payable by any specified class of persons subject to such restrictions and conditions as may be specified in the notification.

[(2) The State Government may, by notification, cancel or vary any notification issued under sub-section (1).

(3) Any notification issued under sub-section (1) shall be valid until it is cancelled under sub-section (2) notwithstanding that the tax payable in accordance with such notification in respect of any specified class of persons is modified by an amendment to this Act.]

Section 30 Local authorities not to levy profession tax

(1) Notwithstanding anything contained in any enactment governing the constitution or establishment of a local authority, no local authority shall, on or after the commencement of this Act, levy any tax on professions, trades, callings or employments.

(2) The provisions in such enactment authorising the local authority to levy such tax shall stand repealed,

Explanation.-For purposes of this section 'local authority' means a Municipal Corporation, a Municipality or 11. Substituted for the words "a Taluk Board" by Act No. 26 of 1982, w.e.f. 27-7-1982. [a Village Panchayat] established by or under any law for the time being in force in the State.

Section 31 Cesses not to be levied in certain cases

Notwithstanding anything contained in any law for the time being in force no cess shall be levied on tax on professions, trades, callings and employments under any such law and the provisions in such law authorising such levy and collection shall, on and from the date of commencement of this Act, stand repealed.

Section 32 Grants to local authorities for loss of revenue

Out of the proceeds of the tax and penalties and interest and fees recovered under this Act, there shall be paid annually to such local authorities as were levying immediately before the commencement of this Act a tax on professions, trades, callings and employments, such amounts on the basis of the highest collections made by them in any year during the period of three years immediately preceding the commencement of this Act, as may be determined by the State Government in mis behalf.

Section 33 Power to make rules

(1) The State Government may, by notification in the Official Gazette and after previous publication make rules to carry out the purposes of this Act:

Provided that, if the State Government is satisfied that circumstances exist which render it necessary to take immediate action, it may dispense with previous publication of any rules to be made under this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for the fees payable in respect of any applications to be made, the forms to be supplied, the certificates to be granted and appeals and applications for revision to be made under this Act.

(3) Every rule made under this Act shall be laid as soon as may be after it is made, before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session in which it is so laid or the sessions immediately following, both Houses agree in making any modification in the rule, or both Houses agree that the rules should not be made, and notify such decision in the Official Gazette, the rule shall from the date of publication of such notification have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done or omitted to be done under that rule.

Section 34 Power to remove difficulties

If any difficulty arises in giving effect to the provisions of this Act, the State Government may, by notification, make such provisions not inconsistent with this Act, as appears to it to be necessary or expedient for removing the difficulty.

SCHEDULE 1 List of Diseases

l Institutions and Tutorial Colleges or Institutes other than those owned by the State or Central Government [Institutions teaching Kannada or English Shorthand or typewriting]

Rs. 2,500 per annum]

20-K

Persons owning/ running STD/ISD/ FAX Booths other than those owned/ run by Government or physically handicapped persons

(i) In the Bangalore Urban Agglomeration or within the

Municipal limits of District Headquarters/town

Rs. 600 per annum

(ii) In any other area in the State

Rs. 300 per annum.]

20-L.

Persons providing entertainment using Dish Antennae and Cable TV

(i) In the Bangalore Urban Agglomeration or within the Municipal limits of District Headquarters/town

Rs. 1,200 per annum

(ii) In any other area in the State

Rs. 300 per annum.]

20-M.

Property Developers including Land Developers and Building/ Flat Developers

Rs. 2,500 per annum

20-N.

Persons owning/running,

(a)

Computer Institutes selling time,

Rs. 1,500] per annum

(b)

Computer Training Institutes/ Driving Institutes /Technical Training Institutes

Rs. 1,200 per annum

20-O.

Persons owning Marriage

Halls/Kalyana Mantaps

Rs. 2,500 per annum

20-P.

(a) Owners of Bars and Restaurants within the limits of City Municipal Corporation

Rs. 1,500 per annum

(b) Licence Holders of distilleries,

Bottling units and vending of arrack (other than sublessees)

Rs. 2,500 per annum

20-Q. (a)

Cinematograph film processors

Rs. 2,500 per annum

(b)

Owners of outdoor film shooting units

Rs. 2500 per annum

20-R.

(A) Persons licensed or approved as contractors by the Railways, State or Central Government, Corporations, Local Authorities or any other person or agency, namely.

(i)

Contractors constructing roads, dams, canals, bridges, culverts including civil or masonry work, Railways sleeper contractors, Forest contractors and Electrical Contractors; where the total consideration of all the contract in a year is.

(a) Upto Rs. 2 lakhs

Nil

(b) Rs. 2 lakhs and above but less than Rs. 5 lakhs

Rs. 300 per annum

(c) Rs. 5 lakhs and above but less than Rs. 10 lakhs

Rs. 600 per annum

(d) Rs. 10 lakhs and above but less than but less than Rs. 25 lakhs

Rs. 1,200 per annum

(e) Rs. 25 lakhs and above but less than Rs. 50 lakhs

Rs. 1,800 per annum

(f) Rs. 50 lakhs and above

Rs. 2,500 per annum

(ii)

Transport contractors including forwarding and clearing agents

Rs. 2,500 per annum

(B)

Bankers who are financing the trade against hundies or other securities by way of short-term advance on interest

Rs. 1,200 per annum.

20-S. (a)

Authorised Assistant recognised by Stock Exchange

Rs. 600 per annum

(b)

Stock brokers, sub-brokers recognised by the Stock Exchange Board of India

Rs. 1,500 per annum

(c)

Persons running weigh bridges

Rs. 600 per annum

(d)

Persons operating courier service

Rs. 2,500 per annum

(e) Agents of courier service.

(i) In Bangalore Urban Agglomeration

Rs. 600 per annum

(ii) In any other area in the State

Rs. 300 per annum.

20-T

Persons operating wireless services including pagers service

Rs. 2,500 per annum.

20-l

J. (a) Persons operating mobile telephone service

Rs. 2,500 per annum

(b) Persons providing internet service running internet cafes, information kiosks

Rs. 2,500 per annum

(c) Persons operating e-commerce business

Rs. 2,500 per annum

(d) Persons operating Air taxi and helicopter services

Rs. 2,500 per annum

(e) Persons running clubs including recreation clubs

Rs. 2,500 per annum

(f) Persons operating Gymnasium

Rs. 2,500 per annum

(g) Persons organizing events, pageants, fashion shows and the like.

Rs. 2,500 per annum.

21.

Persons other than those mentioned in any of the preceding entries who are engaged in professions, trades, callings or employments as the State Government may from time to time by notification specify.

Rs. 600 per annum

KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS RULES, 1976

Ordered that th   e karnataka Tax on Professions, Trades, Callings and Employments Rules, 1976 be published in the Karnataka Gazette for general information.

PART 1 Preliminary

Rule 1 Short title and commencement

(1) These Rules may be called the Karnataka Tax on Professions, Trades, Callings and Employments Rules, 1976.

(2) They shall be deemed to have come into force on the First day of April, 1976.

Rule 2 Definitions

1) In these Rules unless the context otherwise requires

(a) "Act" means the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976;

(b) "Form" means a form appended to these Rules;

(c) "Place of work" in relation to a person or employer, means the place where such person or employer ordinarily carries on his profession, trade, calling or employment;

(d) "Section" means a section of the Act;

(e) "Treasury" means the treasury of the District, the Taluk or Sub-Taluk and includes the Reserve Bank of India or any of its agency Banks in places where the cash transactions of the Government are handed by the Reserve Bank or any of its agency Banks.

(2) The terms not defined in these rules shall have the meaning assigned to them in the Act.

PART 2 Registration and Enrolment

Rule 3 Grant of certificate of registration

(1) An application for a certificate of registration under sub-section (1) of S.5 OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 shall be made in Form-1. An employer having places of work within the jurisdiction of different assessing authorities shall make an application for registration separately to each such authority in respect of his place of work within the jurisdiction of that authority:

Provided that the Commissioner may for reasons to be recorded in writing and subject to such conditions as he may stipulate, exempt an employer having places of work within the jurisdiction of different assessing authorities from making application to the assessing authorities other than the assessing authority having jurisdiction over the principal place of work of the employer in the State.

(2)

(a) On receipt of an application for a certificate of registration, the assessing authority shall grant to the applicant a certificate of registration in Form-3 if it is satisfied that the application is in order and the necessary particulars have been furnished by the applicant.

(b) If the assessing authority finds that the application is not in order or that all he particulars necessary for issue of the certificate of registration have not been furnished, it shall direct the applicant to file a revised application or furnish such additional information, as it may consider necessary. After considering the revised application or the additional information, the assessing authority shall grant a certificate of registration in Form-3.

Rule 4 Grant of certificate of enrolment

(1) An application for a certificate of enrolment under sub-section (2) of Section 5 shall be made in Form-2. A person having more than one place of work in the State of Karnataka, whether within the jurisdiction of the assessing authority or outside such jurisdiction, shall be granted only one certificate of enrolment.

(2) Where the person has more than one place of work within the State of Karnataka, he shall make a single application in respect of all such places, name in such application one of such place as the principal place of work for the purposes of these rules and submit such application to the assessing authority in whose jurisdiction the said principal place of work is situated.

(3) On receipt of an application in Form-2, the assessing authority may call upon the person to furnish such additional information or evidence as may be necessary for determining the amount of tax payable by him according to the Schedule to the Act.

(4) After considering the application and such additional information or evidence as may be furnished, the assessing authority shall grant a certificate of enrolment in Form-4.

(5) Where the person has more than one place of work in the State, as many copies of the certificate shall be issued to him as there are places of work, in addition to the principal place of work.

Rule 5 Amendment of certificate of registration

Where the holder of a certificate of registration granted under Rule 3 desires the certificate to be amended, he shall submit an application for this purpose to the assessing authority setting out the specific matters in respect of which he desires such amendment and reasons therefor, together with the certificate of registration, and such authority may, if satisfied with the reasons given, make such amendments as it thinks necessary in the certificate of registration.

Rule 6 Amendment of certificate of enrolment

(1) The certificate of enrolment granted under Rule 4 shall remain valid so long as it is not cancelled under sub-rule (2) of Rule 7.

(2) An application for a revised certificate of enrolment shall be made in Form-2. On receipt of such application the assessing authority may call upon the applicant to furnish such additional information in evidence as may be necessary for determining the amount of tax payable by him according to the Schedule to the Act and after so determining the amount of tax payable by the applicant, the assessing authority shall make necessary amendments, in the certificale of enrolment under his dated signature indicating the year from which the tax at the revised rate shall be payable.

Rule 7 Cancellation of certificate

(1) The certificate of registration granted under Rule 3 may be cancelled by the assessing authority after it has satisfied itself that the employer to whom such a certificate was granted has ceased to be an employer.

(2) The certificate of enrolment granted under Rule 4 may be cancelled by the assessing authority after it is satisfied that the enrolled person is dead or his liability to pay tax has ceased.

Rule 8 Exhibition of certificate

The holder of the certificate of registration or the certificate of enrolment as the case may be, shall display conspicuously at his places of work the certificate of registration or the certificate of enrolment or a copy thereof.

Rule 9 Issue of duplicate copy of certificate

If a certificate of registration or a certificate of enrolment granted under these rules is lost, destroyed or defaced or becomes illegible, the holder of the certificate may apply along with a Court-fee stamp of rupee one to the assessing authority for the grant of a duplicate copy of such certificate. The said authority shall, after such verification as may be necessary, issue to the holder of the certificate a copy of the original certificate, after stamping thereon the words "duplicate copy".

PART 3 Returns, Notices and payment of tax

Rule 10 Commissioner to give a public notice

The Commissioner shall in the month of April every year give a publication in the news papers directing all persons liable to pay tax under the Act to get themselves registered or enrolled as the case may be (unless they are already registered or enrolled), and to furnish returns and pay the tax according to the provisions of the Act and these rules.

Rule 11 Return and assessment

(1) The return under sub-section (1) of S.6 OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 shall be furnished in Form-5.

(2) Before an order of assessment is made under clause (c) of sub-section (2) or under sub-section (3) of S.7 OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the assessee shall be afforded a reasonable opportunity of showing cause against such assessment and for this purpose he shall be served with a notice in Form-12.

Rule 11A Payment of tax in advance

11. Rule 16-A inserted by Notification No. FD 8 CPT 95, dated 7-8-1995, w.e.f. 8-8-1995 (GSR 102). The statement under sub-section (1) of S.6A OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 shall be in Form, 5-A and shall be sent in duplication to the issessing authority, within the time specified in S.6A OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.]

Rule 12 Notice under Sections 5(6), 6(3) and 7(2)(a) or (3).

The notice under sub-section (6) of S.5 OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, undor sub-section (3) of S.6 OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 or under clause (a) of sub-section (2) or sub-section (3) of S.7 OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, shall be issued by the assessing authority in Form-6.

Rule 13 Notice under Sections 5(5) and 12.

The notice under sub-section (5) of S.5 OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 or under S.12 OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 shall be issued by the assessing authority in Form-7.

Rule 14 Notice of demand under Section 7(4) etc.

The notice of demand under sub-section (4) of S.7 OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and other demands, including any penalty or interest imposed under the Act, shall be issued by the assessing authority in Form-8.

Rule 15 Payment of tax by employers

An employer shall make payment of tax and interest and penalty (if any) by deposit of the requisite amount in the treasury by Challan in Form-9 in quadruplicate. The copies marked 'Original' and 'Duplicate' shall be returned to the employer duly receipted, of which the copy marked 'Duplicate' shall be submitted by the employer other than an officer referred to in Rule 16 to the assessing authority along with the return prescribed by Rule 11. An officer referred to in Rule 16 shall forward such receipted copies of challans marked 'Duplicate' to the assessing authority along with the stalemcnt prescribed in the said Rule.

Rule 16 Deduction of tax amount from the salary or wages of employees

(1) The drawing and disbursing officer in the case of non-gazetted Government servants and the treasury officer or the pay and accounts officer, as the case may be, in the case of gazetted Government servants, shall be responsible for the deduction of due amount of tax from the pay bill of the employees. The deduction sha 11 be made every month, and the pay or wages of such an employee for the month of February shall not be permitted to be drawn unless the tax due for the period March to February or part thereof or from the month in which the employee has attracted liability to pay the tax to February, as the case may be, has been fully deducted and a statement showing such deduction has been enclosed with the pay bill. The drawing and disbursing officer or the treasury officer, as the case may be, shall furnish to the assessing authority not later than the 30th April, a statement relating to the payment of salary made to the Government servants along with a certificate that the tax payable in respect of the employees for whom they drew or passed pay bill during the year immediately preceding has been deducted in accordance with the provisions of the Schedule to the Act. Such statement shall show the name of the employee, the details of salary drawn, the amount of tax deducted there from and the period to which the tax relates.

(2) Notwithstanding the provisions contained in Rule 15 and sub-rule (1), the liability of an employee to pay tax shall not cease until the due amount of tax in respect of his has been fully paid to the Government account, and without prejudice to the aforesaid provisions, the said amount may be recovered from him if the employer or the assessing authority is satisfied that the amount has not been deducted from his salary or wages.

Rule 16A Rounded off of tax, etc.

11. Rule 16-A inserted by Notification No. FD 8 CPT 95, dated 7-8-1995, w.e.f. 8-8-1995 (GSR 102). The amount of tax including tax payable in advance, penalty or any other amount payable and the amount of refund due under the Act shall be rounded off to the nearest rupee and for this purpose, where such amount contains a part of a rupee consisting of a paise, then, if such part is fifty paise or more it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.

Rule 17 Collecting Agents to maintain an account of collection of tax, etc.

Every Collecting Agent shall maintain proper accounts of the tax and other amounts collected by him under the Act. He shall also maintain a register in Form-22 in which he shall enter the tax and other amounts as and when collected.

Rule 18 Employer to keep account of deduction of tax from salary of the employees.

Every employer liable to pay tax shall maintain a register in which shall be entered the amount of salary and wages paid to each of the persons in his employment and the said register shall contain a column in which shall be shown the amount deducted from the salary and wages of the employee on account of the tax.

Rule 19 Payment of tax by enrolled persons

(1) A person enrolled under sub-section (2) of S.5 OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and liable to pay tax shall make payment of tax within the period specified in sub-section (2) of S.10 OF THE Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 by paying the requisite amount into the treasury by challan in Form-9 in quadruplicate. The copies marked 'Original' and 'Duplicate' shall be returned to the person duly receipted of which the copy of marked 'Duplicate' shall be submitted by him to the assessing authority as proof of payment of tax:

11. Inserted by GSR 5, dated 5-1-1982, w.e.f. 14-1-1982. [Provided that the payment of tax may also be made in cash to the assessing authority or where the amount does not exceed rupees five hundred, to the Commercial Tax Inspector attached to the jurisdictional assessing authority. The receipts for such payments shall be issued in Form-23.]

(2) Where payment of tax, interest and penalty (if any) is required to be made to a Collecting Agent appointed under S.15 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 such payment shall be made within such time as may be notified by means of a paying-in-slip duly filled, in Form-10 in duplicate.

(3) The Collecting Agent sha 11 credit to the treasury by challan in Form-9 in quadruplicate on or before the 10th of each month the amount of tax, interest and penalty collected by him during the preceding month under sub-rule (2) and forward the receipted copy of the challan marked 'Duplicate' to such authority as may be specified by the Commissioner along with a statement of collection in Form-14 signed and verified by him.

PART 4 Appeals

Rule 20 Appeal to the Joint Commissioner

(1) Every appeal under S.16 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 to the Joint Commissioner shall be in Form-18 and shall be verified in the manner specified therein.

(2) The appeal may be sent to the appellate authority by registered post or may be presented to the authority or to such other officer as the appellate authority may appoint in this behalf, by the appellant or by his authorised agent or a legal practitioner or an accountant or sales tax practitioner duly authorised by the appellant in writing.

Rule 21 Appeal to Appellate Tribunal.

An appeal under S.17 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 to the Tribunal shall be in Form-19 and shall be verified in the manner specified therein.

Rule 22 Appeal to the High Court

An appeal to the High Court under sub-section (4) of Section 18 shall be in Form-20 and shall be verified in the manner specified therein.

Rule 22A Revision petition to the High Court

11. Rule 22-A inserted by GSR 216, dated 12-9-1985, w.e.f. 12-9-1985.

(1)

(a) Every petition under sub-section (1) of S.18A of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 to the High Court shall be in Form-20-A and shall be verified in the manner specified therein;

(b) The petition shall be accompanied by a certified copy of the order of the Appellate Tribunal.

(2) Every application for review under sub-section (7) of S.18A of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 to the High Court shall be in Form-20-B and shall be verified in the manner specified therein.]

PART 5 Miscellaneous

Rule 23 Action for default by an enrolled person

(1) If it comes to the notice of the assessing authority that a person enrolled under sub-section (2) of S.5 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 has failed to pay the amount of tax due from him, in the manner laid down in Rule 19, he shall serve on that person a notice in Form-13 requiring him on a date specified in the notice, to attend in person or through an authorised representative for showing cause regarding non-payment of tax. After giving such a person a reasonable opportunity of being heard and after holding such inquiry as may be deemed fit, or otherwise, if the assessing authority is satisfied that the tax is payable but it has not been paid, that authority shall serve a notice of demand in Form-16 on that person or his representative to pay the amount within fifteen days of the receipt of the notice.

(2) If a person, liable to pay tax has wilfully failed to get himself enrolled, then without prejudice to the action that may be taken against him under sub-section (5) of S.5 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the assessing authority shall after giving that person a reasonable opportunity of being heard and after such inquiry, as may be deemed fit, or otherwise, assess the tax due to the best of its Judgment and serve on him a notice of demand in Form-17 to pay the tax within fifteen days of the receipt of the notice. Notice of hearing in such case shall be issued by the assessing authority in Form-11. The notice under sub-section (6) of S.5 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 in respect of persons liable for enrolment shall also be in Form-11.

Rule 24 Notice under Section 8 or 9

Notice under S.8 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 or s.9 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 shall be issued in Form-14.

Rule 25 Treasury Officer to forward quadruplicate copies of Challans to the Government Computer Centre.

The receipted copies of challans in Form 9 marked 'Quadruplicate' in respect of each month shall be forwarded by the officer-in-charge of the Treasury to the Government Computer Centre, Bangalore within the 15th of the succeeding month.

Rule 26 Shifting of place of work

(1) If the holder of a certificate of registration or a certificate of enrolment in one area shifts his place of work to

(2) With effect from the commencement of the month immediately succeeding that in which the notice is given/ the assessing authority having jurisdiction over the area to which the place of work has been shifted shall exercise all powers and discharge all functions pertaining to the determination and recovery of tax, and matters ancillary thereto, in respect of the sender of such notice.

Rule 27 Service of notices

(1) Notices under the Act or the rules made thereunder may be served by any of the following methods, namely:

(i) by delivering or tendering a copy of the notice to the addressee or any adult member of his family residing with him or to a person regularly employed by him; or

(ii) by Registered post:

Provided that, if upon an attempt having been made to serve any such notice by any of the above mentioned methods the authority under whose orders the notice was issued is satisfied that the addressee is keeping out of the way for the purpose of avoiding service or that, for any other reasons, the notice cannot be served by any of the above mentioned methods, the said authority shall order the service of the notice to be effected by affixing a copy thereof on some conspicuous part of the addressee's place of work or residence last notified by him and such service shall be deemed to have been made on the addressee personally.

(2) When the serving officer delivers or tenders a copy of the notice to the addressee personally or to any of the persons referred to in clause (i) of sub-rule (1), he shall require the signature of the person to whom the copy is so delivered or tendered to an acknowledgment of service endorsed on the original notice.

(3) When the notice is served by affixing a copy thereof in accordance with the proviso to sub-rule (1), the serving officer shall return the original to the authority which issued the notice with a report endorsed thereon or annexed thereto stating that he so affixed the copy, the circumstances under which he did so and the name and address of the person, if any, by whom the addressee's place of work or residence is or was located was identified and in whose presence the copy was affixed. The serving officer shall also obtain the signature or thumb impression of the person identifying the addressee's place of work or residence to his report.

(4) The authority under whose orders the notice was issued shall, on being satisfied from the report of the messenger or the postal acknowledgment or by taking such evidence as he deems proper that the notice has been served in accordance with this rule, record the fact and make an order to that effect.

(5) If the authority is not satisfied that the notice has been properly served, he may after recording an order to that effect, direct the issue of a fresh notice.

Rule 28 Grant of copies

(1) If any assessee wants to have a certified copy of a document filed by him or of an order concerning him passed by any authority, he shall make to the authority concerned an application bearing adhesive Court-fee stamp of the value of twenty-five paise for an ordinary copy or such stamp of the value of rupee one and twenty-five paise for a copy which he desires to be supplied within two days of his applying for the same.

(2) On receipt of the application, the said authority shall inform the applicant of the amount of Court-fee stamps required, under the provisions of sub-rule (3) for supply of the copy. After the requisite amount of Court-fee stamp is furnished by the applicant, the said authority shall cause a certified copy of the document or order to be prepared and granted to the applicant.

(3) Additional fee in the shape of Court-fee stamp shall be payable for the grant of copies at the rates given below:

(a) Copying fee for the first 200 words or less of the documents-Seventy-five paise

(b) For every additional 100 words or fraction thereof.- Forty paise.

Rule 28A Fee for clarification of rate of tax

11. Rule 28-A inserted by GSR 48, dated 30-3-1996, w.e.f. 1-4-1996

(1) The fee payable for seeking clarifications under sub-section (2) of S.14A of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 shall be one hundred rupees.

(2) The fee specified in sub-rule (1) shall be paid by way of Crossed Demand Draft drawn in favour of Commissioner of Profession Tax in Karnataka, Bangalore.

Rule 29 Refund of tax

Where the assessing authority receives an application for refund of tax under S.22 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 he shall, if he is satisfied that a refund is due to the applicant in terms of the provisions of the said Section, record an order showing the amount of refund due and shall issue to the applicant a refund payment order in Form-21.

Rule 30 Composition of offences

The assessing authority shall exercise the powers specified in S.26 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 subject to the control and direction of the Joint Commissioner and the Commissioner.

APPENDIX 1 Form 1

FORM

[See Rule 3(1)]

FORM 1

[See Rule 3(1)]

Application

No............

Under the Karnataka Tax on Professions, Trades,

Callings and Employments Act, 1976.

I hereby

apply for a Certificate of Registration under the above mentioned Act as per

particulars given below:-

Sl. No. Particulars 1. Name of the Applicant 2. Full Postal Address 3. Class of employer:- Individual-1, Partner-2, Firm-3, Company-4, Corporation-5, Society-6, Club and Association- 7, Others specify-8 4. Status of person signing this Form:-Proprietor-1, Partner-2, Principal Officer-3, Agent-4, Manager-5, Director-6, Secretary-7, Others specify-8

The above

statements are true to the best of my knowledge and belief.

Date :

Signature with Status

Registration No.

Signature of the

Issuing Officer Date of Issue.......

ACKNOWLEDGMENT

(Particulars of

name and address to be filed in by applicant) Received an application for

Registration in Form-1

From

Application No..............

Name

Address

Date:

Signature of the Receiving Officer.

APPENDIX 2 FORM 2

FORM

[See rule 4(1) and Rule 6(2)]

FORM 2

[See Rules 4(1) and 6(2)]

Application

No...........

Application for Certificate of Enrolment/Revision of

Certificate of Enrolment under the Kamataka Tax on Professions, Trades,

Callings and Employments Act, 1976.

I hereby apply for a Certificate of Enrolment/Revision of Certificate

of Enrolment under the above mentioned Act as per particulars gjven bwlow:-

1. Name of the Applicant

2. Full Postal Address

3. Date of birth and age

4. Profession, Trade or Calling

5. Period of standing in profession in years

and months

6. No. of other places of works (please give

the address of the places on the reverse)

7. Annual Turnover of all sales/ purchases

8. No. of workers engaged in the factory

9. No. of employees in the Establishment

10. If Co-operative Society whether State

level, District level or Taluk level

11. No. of vehicles for which 3 Wheelers permit

under M.V. Act is held:

Trucks and

Buses

Total

12.

Enrolment No. of previous certificate, if any

13. Grounds on which revision is sought

Please fill

up whichever is applicable.

To be filled

in by persons covered by Sl. Nos. 2, 3 and 8 of the Schedule.

The above

statements are true to the best of my knowledge and belief.

Date:

Signature with Status

(FOR OFFICE USE ONLY)

Enrolment No.

Date of

Enrolment

Signature of Issuing Officer

ACKNOWLEDGMENT

(Particulars of name and address to be filled

by Applicant)

Received an application for Enrolment in Form

From

Name:

Application No.......

Address:

Date...............

Signature of

Receiving Officer.

APPENDIX 3 Certificate of Registration issued under Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.

FORM[See Rule 3(2)]

FORM 3

[See Rule 3(2)]

Certificate of Registration

issued under Karnataka Tax on Professions, Trades, Callings and Employments

Act, 1976.

Registration

No.

Date of Registration...............

This is to certify that the...................known

as...................and located at...................has been registered as an

Employer under the above mentioned Act.

Return in the prescribed form shall be furnished by the employer in

respect of each month separately. The tax shall be payable monthly with the

return and receipted challan in token of payment of the tax shall be attached

to the return.

Office Seal

Place:

Signature.

Date:

APPENDIX 4 Certificate of Enrolment issued under Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.

FORM

[See Rule 4(4)]

FORM 4

[See Rule 4(4)]

Certificate of Enrolment issued under

Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.

Enrolment No.

Date of Enrolment

This is to certify that..............engaged in the Profession/Trade/Caning

..............located ,it.................has been enrolled under the above

mentioned Act.

The holder of this Certificate has additional places of work, at the

following addresses in the State

1.

2.

The holder of this Certificate shall pay the tax at

the rate of Rs...............per annum on or before the 30th September of every

year/on or before ..................in the manner prescribed in Rule 18 of the

Karnataka Tax on Professions/ Trades/ Callings and Employments Rules, 1976.

Office Seal

Place:

Signature

Date:

Designation.

APPENDIX 5 Return of tax payable by employer under sub-section (1) of Section 6 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.

April

2.

May

3.

June

4.

July

5.

August

6.

September

7.

October

8.

November

9.

December

10.

January

11.

February

12.

March

6. Total tax payable for the year ending...............

7. Tax paid as per monthly statement.................

8. Balance tax payable.............................

9. Balance tax paid under Challan No......Date.......

I certify that all the employees who are liable to pay the tax in my employ during the period of return have been covered by the foregoing particulars.

I also certify that the necessary revision in the amount of tax deductable from the salary or wages of the employees on account of variation in the salary or wages earned by them has been made where necessary.

I, Shri....................solemnly declare that the above statements are true to the best of my knowledge and belief.

Place:

Signature

(Employer)

Date:

Status

(FOR OFFICIAL USE)

The return is accepted on verification Tax assessed Rs..............

Tax paid Rs..............

Balance Rs..............

Assessing Authority.

FORM 5-A

[See Rule 11-A]

Statement of tax payable by employer under sub-section (1) of Section 6-A.

1. Amount of tax payable for the month or quarter ending on

2. Name of the Employer..........................

3. Address......................................

4. Registration Certificate No........................

5. Number of employers during the month [or quarter] in respect of whom the tax is payable is as under:

Employees whose monthly salary or waves of both are

 Number of employees

 Rate of Tax per month

 Amount of Tax deducted

(1)

 (2)

 (3)

 (4)

(a)

 Not less than Rs. 1,500 but less than Rs. 2,000

(b)

 Not less than Rs. 2,000 but less than Rs. 3,000

(c)

 Not less than Rs. 3,000 but less than Rs. 4,000

(d)

 Not less than Rs. 4,000 but less than Rs. 6,000

(e)

 Not less than Rs. 6,000 but less than Rs. 10,000

(f)

 Not less than Rs. 10,000 but less than Rs. 15,000

(g)

 Not less than Rs. 15,000 but less than Rs. 20,000

(h)

 Not less than Rs. 20,000

 Total

Add interest if any payable under Section 11(2) of the Act .............................................

Grand Total Amount paid under Challan No..................dated.........

I certify that all the employees who are liable to pay the tax in my employ during the period of statement have been covered by the foregoing particulars.

I also certify that the necessary revision in the amount of tax deductable from the salary or wages of the employees on account of variation in the salary or wages earned by them has been made where necessary.

I, Shri....................solemnly declare that the above statements are true to the best of my knowledge and belief.

Place:

Signature

(Employer)

Date:

Status.

APPENDIX 6 Notice of hearing to an employer under sub-section (6) of Section 5, subsection (3) of Section 6, clause (a) of sub-section (2) of Section 7 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.

FORM

[See Rule 12]

FORM 6

[See Rule 12]

Notice of hearing to an employer under

sub-section (6) of Section 5, subsection (3) of Section 6, clause (a) of

sub-section (2) of Section 7 of the Karnataka Tax on Professions, Trades,

Callings and Employments Act, 1976.

To

Registration

Certificate No. (if any)...................

(a) Whereas

being liable to registration you have deliberately given false information in

your application under Section 5;

I hereby give

you notice to attend in person or through an authorised representative and show

cause why a penalty not exceeding rupees one thousand should not be imposed

upon you under sub-section (6) of Section 5.

(b) Whereas I

am not satisfied that the returns furnished by you for the

month/period..................is/are correct and complete;

I hereby give

you notice to attend in person or through an authorised representative, along

with the accounts, papers and other evidence in support of your return/s.

(c) Whereas

you have wilfully failed to get yourself registered/having been registered you

have failed to file the return/s within the required time, for the

month/period..............

I hereby give you notice to attend in person or through an authorised

representative and show cause why a penalty not exceeding rupees five for each

day of delay should not be imposed upon you.

I hereby give you notice 1o attend in person or through an authorised

representative along with the accounts and other evidence relating to your

employees and the monthly gross expenditure, incurred over the disbursement

of salaries

and wages to them.

Please take notice that ex-parte orders may be passed in the event of

default to appear personally or through an authorised representative on

.........at.......

(SEAL)

Place:

Signature

Date:

Designation.

APPENDIX 7 Notice for showing cause under sub-section (5) of Section 5 or Section 12 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.

FORM

[See Rule 13]

FORM 7

[See Rule 13]

Notice for showing cause under

sub-section (5) of Section 5 or Section 12 of the Karnataka Tax on Professions,

Trades, Callings and Employments Act, 1976.

To

.........................(Address)

Whereas being a registered employer/enrolled person, you have failed to

pay the tax within the required time;

You are

hereby given notice to show cause why a penalty of Rs..............should not

be imposed on you according to law; Whereas being liable to registration/enrolment

under Section 5 of the Karnataka Tax on Professions, Trades, Callings and

Employments Act, 1976, you have failed to apply for a certificate of

Registration/Enrolment within the required time;

You are

hereby given notice to show cause why a penalty not exceeding Rs. 20-00/Rs.

5-00 for each day of delay should not be imposed on you according to law.

Please take notice that the cause shown by you will be heard by the

undersigned on...................at...................

(SEAL)

Place:

Signature

Date;

Designation.

APPENDIX 8 Notice of demand for payment of tax/interest/penalty under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.

FORM

[See Rule 14]

FORM 8

[See Rule 14]

Notice of demand for payment of

tax/interest/penalty under the Karnataka Tax on Professions, Trades, Callings

and Employments Act, 1976.

To

Registration

Certificate No................................

Enrolment Certificate

No.................................

Please take

notice that Whereas your

Assessment

Appeal

Revision

Rectification

Penalty

proceedings for the period.............has been duly disposed of under

Section/under Rule.............you are hereby directed to deposit the following

amount in the Government Treasury within 15 days of receipt of this notice:

Rs. Rs. (i) Tax assessed (ii) Interest payable, if any Rs. Rs. (iii) Penalty, if any Total:

Less amount

already paid, if any Net Demand/Excess amount in words

(SEAL)

Place:

Signature

Date:

Designation.

APPENDIX 9 FORM 9

FORM

FORM 9

CHALLAN

ORIGINAL

(For the Payer)

The Karnataka Tax on Professions, Trades,

Callings and Employments Act, 1976.

"028 Other Taxes on Income and Expenditure-I Tax on Professions,

Trades, Callings and Employments/I Tax on Professions, Trades and Callings/II

Tax on Employments/Ill Other Receipts." Challan of tax, interest, penalty

and composition money paid to the .... ..........Treasury/Sub-Treasury/Branch

of the State Bank of India/Reserve Bank of India................for the period

from..............to

Payment

on Amount

account

of (in figures)

By whom

tendered

Rs. Ps.

Name and

address of the (a) Tax

person on

whose behalf (b) Interest

money is

paid

(c) Penalty under

section

(d) Composition money

Total

(1) Registration Certificate No.

or

(2) Enrolment Certificate No, Rupees (in words)...............

Date:

Signature of Depositer

Registered

persons to strike off (I) and enrolled persons to strike off (II).

Enter tax,

interest, penalty and composition money separately.

(For use in the Treasury)

1. Received payment of Rs............(in

figures) Rupees......................(in words)

2. Date of entry.............Challan

No...........

Treasurer

Accountant

Treasury Officer/ Agent or Manager.

FORM 9

CHALLAN

DUPLICATE

(To be sent to the Profession Tax Officer)

The Karnataka Tax on Professions, Trades,

Callings and Employments Act, 1976.

"028

Other Taxes on Income and Expenditure-I Tax on Professions Trades, Callings and

Employments/I Tax on Professions, Trades and Cellings/II Tax on Employments/III

Other Receipts." Challan of tax, interest, penalty and composition money

paid to the ... ..........Treasury/Sub-Treasury/Branch of the State Bank of

India/Reserve Bank of India............for the period from.........to......

Payment

on Amount

account

of (in figures)

By whom

tendered

Rs. Ps.

Name and

address of the (a) Tax

person on

whose behalf (b) Interest

money is

paid (c)

Penalty under

section

(d) Composition

money

Total

(1) Registration Certificate No.

or (2) Enrolment Certificate No.

Rupees (in

words)..............

Date:

Signature of Depositer

Registered

persons to strike off (I) and enrolled persons to strike off (II).

Enter tax,

interest, penalty and composition money separately.

(For use in the Treasury)

1. Received payment of Rs............. (in figures) Rupees .............(in words)

2. Date of entry............ Challan No......

Treasurer

Accountant

Treasury Officer/Agent or Manager.

FORM 9

CHALLAN

TRIPLICATE

(For the Treasury)

The Karnataka Tax on Professions, Trades,

Callings and Employments Act, 1976.

"028

Other Taxes on Income and Expenditure-I Tax on Professions, Trades, Callings

and Employments/I Tax on Professions, Trades and Callings/II Tax on

Employments/III Other Receipts." Challan of tax, interest, penalty and

composition money paid to the. ... ..........Treasury/Sub-Treasury/Branch of

the State Bank of India/Reserve Bank of India..............for the period

from..............to ..

Payment

on Amount

account

of (in figures)

By whom

tendered Rs. Ps.

Name and

address of the (a) Tax

person on

whose behalf (b) Interest

money is

paid

(c) Penalty under

section

(d) Composition