The Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Bill, 2023
KARNATAKA ACT NO. 14 OF 2023
(First Published in the Karnataka Gazette Extra-ordinary on the 14th day of March 2023)
THE KARNATAKA TAX ON PROFESSION, TRADES, CALLINGS AND EMPLOYMENTS (AMENDMENT) ACT, 2023
(Received the assent of the Governor on the 13th day of March 2023)
An Act further to amend the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976.
Whereas, it is expedient to amend the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976), for the purposes hereinafter appearing;
Be it enacted by Karnataka State Legislature in the Seventy-fourth year of the Republic of India as follows.-
1. Short title and commencement.-
(1) This Act may be called the Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2023.
(2) Save as otherwise provided, the provisions of this Act shall come into force with effect from the 1st day of April, 2023.
2. Amendment of section 2.-
In the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976) (hereinafter referred to as the Principal Act), in section 2,-
(i) after clause (a), the following clauses shall be inserted, namely:-
"(aa) "agent" means a person who acts on behalf of another person in the course or furtherance of business;
(ab) "assessment" for the purposes of this Act, means determination of tax liability under this Act and includes self-assessment, reassessment and best judgment assessment;"; and
(ii) in clause (h), in the explanation after the words "Every branch of a", the words and punctuation mark "proprietary concern,", shall be inserted.
3. Amendment of section 9.-
In section 9 of the Principal Act, in sub-section (2), for the words "not exceeding one and half times", the words "equal to one hundred per cent of" shall be substituted.
4. Amendment of section 10.-
In section 10 of the Principal Act, in subsection (6), for the figure and symbol "2%", the words "one and a half per cent", shall be substituted.
5. Amendment of section 11.-
In section 11 of the Principal Act, in subsection (2), for the words "one and a quarter per cent", the words "one and a half per cent", shall be substituted.
6. Amendment of section 12.-
In section 12 of the Principal Act,-
(i) the words and punctuation mark ", without reasonable cause,", shall be omitted; and
(ii) for the words "not exceeding fifty percent", the words "equal to ten percent", shall be substituted.
7. Substitution of Schedule.-
For Schedule of the Principal Act and the Explanations I to V thereunder, the following Schedule and Explanations shall be substituted, namely:-
"SCHEDULE
[See section 3(2)]
Rates of tax on professions, trades, callings and employments
1
2
3
4
5
6
7
8
Explanation- For the purposes of this entry Goods Transport Agency or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.
9
10
Explanation.- For the purpose of this entry, 'banking companies' shall include any bank whose operations are governed by the provisions of the Banking Regulation Act,1949 (Central Act 10 of 1949)
11
12
Explanation I.- Notwithstanding anything in this Schedule, where a person is covered by more than one entry in the Schedule, tax is payable under any one of such entries.
Explanation II.- For the purposes of determining the liability of tax, in terms of Serial No. 4 in this Schedule, the higher number of workers and / or employees at any time during the year shall be reckoned as the basis.
Explanation III.- For the purposes of this Schedule where any asset or business is held on lease by a lessee, such lessee shall be deemed to be the person liable under the Act.
Explanation IV.- No tax shall be levied under this Act on any partner of a firm which is engaged in any profession, trade or calling if the tax is paid by such firm.
Explanation V.- Notwithstanding anything contained in the Schedule, every additional place of a person enumerated in any item of the Schedule shall be deemed to be a separate person for the purpose of levy of Profession tax specified in the Schedule and nothing in this explanation shall be applicable in case of additional places of business which are exclusively used as godown for storing goods."
By Order and in the name of
the Governor of Karnataka,
G.SRIDHAR
Secretary to Government
Department of Parliamentary
Affairs and Legislation