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krishnarajpr (n/a)     28 February 2008

Karanataka Professional Tax- suggestion reqd.

Ours is a partnership firm duly converted to Private company and now a PVT ltd company. This change was done 1998.

From 1998 we have been deducting Profession tax from the salary of staffs and has been paying both empoyer contribution, employee contribution in to bank regularly. We have challan copies from 2005 only. But unfortunately, we have not filed the yearly returns from 1998 to till date.

Department is now asking for this or else, out of the way settlemtn they are asking some BIG favour. Pl advice what is the penalty for this and what is to procudure to set the things right.


 3 Replies

krishnarajpr (n/a)     28 February 2008

Sorry i have not mentiond which state. Our HO is at Chennai and branch at Bangalore. Now banglore we have not the returns. So this question pertains to Karnataka Tax on Profession Traders, callings and employement act 1976. Sorry for the incovinince. Krishnaraj P R

Guest (n/a)     28 February 2008

Hi, Please can you verifty is it Professional Tax or Provident Fund. As far i know professional tax contribution is only from employee side not from employer side. Regards, Vidya

Prakash Yedhula (Lawyer)     28 February 2008

7. Assessment of employer 1[or person]1.- (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 Judgement.

1[(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 judgement.

1[(3A) 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).]1

(4) The amount of tax so assessed 1[or the amount of penalty so levied]1 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 1[employer or person]1 satisfies the assessing authority that he was prevented by sufficient cause from getting himself registered or, from filing the return under section 6 2[or from getting himself enrolled under section 5]2, 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.

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