Professional Tax is a tax on any kind of profession, trade or employment. Some state governments including the State of Karnataka have passed a law to improves professional tax on the assessee of professional tax.
The assessee has been defined as a person or employer by whom professional tax is payable upon this engagement in any profession, trade, calling or employment within the State of Karnataka.
The person has been defined under Section 2(h) of the Act, as follows
“(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.
Explanation: – Every branch of a firm, company, corporation or other corporate body, any society, club or association shall be deemed to be a person.”
On a plain reading of under Section 2(h) above can be summarized under following table
| S.No. | Type of Person |
|---|---|
|
1. |
Every employer. |
|
2. |
Persons acting as Directors of the Companies, the Partner of a firm or designated partner and partners of Limited Liability Partnership (LLP). |
|
3. |
The persons like HUF, firm, Limited Liability Partnership (LLP), Company, Corporations, other Corporate bodies, any societies, Club or Association. |
|
4. |
Professionals like Legal Practitioners including Solicitors and Notaries, Medical Representatives including Medical Consultants and Dentists, Doctors, Chartered Accountant, Company Secretaries, Management Consultants, Architectures, Engineers, RCC Consultants, Tax Consultants, Insurance Agents. |
There are various other entities which is required to register itself under the Professional Tax laws of respective states in India and to pay the taxes on time and to file appropriate Professional Tax Return.