Karnataka Legislative Assembly passes Bill to further amend the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976

With a view to amend the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976 (“Act”) and to overcome the difficulties faced while collection and levying of tax on
Professions, Trades, Callings and Employments especially after the implementation of GST, the Karnataka Legislative Assembly has passed the Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Bill, 2023 (“Bill”). The provisions of the Bill, if enacted, are said to gain effect from 1st April, 2023.

Key proposals of the Bill:

i. To insert new definitions of “agent” which means a person acting on behalf of another person in the course or furtherance of business and “assessment” which means determination of tax liability under this Act and includes self-assessment, reassessment and best judgment assessment;
ii. To reduce the penalty in cases where the escape from the assessment was due to wilful non-disclosure of information or attempt at evading the tax by the employer or the person and in case of non-payment of tax by a registered employer within the required time;
iii. To reduce the interest rate where default is committed in payment of tax so deducted by a person and increase the interest rate where any employer fails to deduct the tax at the time of payment of the salary or wage, or after deducting fails to pay the tax;
iv. To substitute the Schedule to suit the present circumstances in the light of implementation of GST and also to rationalise the tax payable.

A Copy of the Notification has been linked below for your ease of reference.

Source: Karnataka Legislative Assembly