1. Short title and commencement. —
(1) These rules may be called the Kerala Panchayat Raj (Profession tax) Rules, 1996.
(2) They shall come into force on the 1st day of April, 1996.
2. Definitions. - In these rules, unless the context otherwise requires, —
(a) 'Act' means the Kerala Panchayat Raj Act, 1994 (13 of 1994);
(c) ‘Transacts Business' means **[XXX]
** Sub-clauses i, ii, iii shall be omitted in S.R.O No. 322/2006, dtd 28-03-2006 to give the details connected with the levying of tax or intimating the employee for the purpose of levying of tax or service of any bill/demand notice and the due receipt and return of duplicate by the addressee or of the deduction/collection of profession tax from the salary of the employee for prompt payment in the Village Panchayat and includes requisition to give the required particulars for proper recording of accounts or for further action in the matter;
3. Maximum rates of half-yearly -tax. — *[(1) For the purpose of assessment of profession tax, companies and persons shall be classified as stated in colum (2) of the Schedule below based on half-yearly income and the maximum profession tax to be levied from them for ech half year shall be as mentioned in colum (3) of the Schedule namely:
|Slab||Halfyearly income||Maximum half-yealry Tax|
|II||from 18,000 to 29,999||180|
|III||from 30,000 to 44,999||300|
|IV||from 45,000 to 59,999||450|
|V||from 60,000 to 74,999||600|
|VI||from 75,000 to 99,999||750|
|VII||from 1,00,000 to 1,24,999||1,000|
|VII||from 1 ,25,000 onwards||1,250|
(2) Village Panchayat shall determine the tax leviable on each class subject to the maximum rate specified in sub-rule (1):
* Sub-rule (1) Substituted by S.R-O. No. 713/97, dated 115-01-2003
Provided that the tax leviable on any class determined by the Village Panchayat shall be in the multiples of rupees: Provided further that the proportion which the tax on any class bears to the minimum income of that class shall in no case be smaller than the proportion which the tax on any lower class bears to the minimum income of such lower class.
(3) Village Panchayat may exempt any one or more of the classes in sub-rule (1) of Rule 3 from the liability of profession tax: Provided that no class shall be exempted from the liability of tax when persons in the lowest class are liable to pay tax.
4. Transaction of business and exercise of a profession. — A company shall be deemed to have transacted business and a person shall be deemed to have exercised a profession, art or calling or held an appointment within a Village Panchayat area if such company or person or persons has an office or place of employment within such Village Panchayat area. **[4A. Liability to pay tax in certain cases.- (1) If a company or person has an agent or office in the Village Panchayat for the purpose of transacting business, whether or not such office or agent has power to make binding contracts on behalf of the company or persons, that company or person shall be deemed to transact business within the Panchayat area and the person holding the charge of such office or the agent or firm, as the case may be, shall be liable for the tax payable by the company or person.
(2) The liability of a company or person otherwise liable to pay profession tax under sections 204 and 205 shall not cease to pay such tax solely on the reason that the place from which its or his business is controlled situates outside the Panchayat area or only on the reason that its or his transactions were stopped outside the Panchayat area.]
5. Determination of tax when the business is confined exclusively to a single Village panchayat area. — Where a company or person transacts business in a half year exclusivelyin the area of a single Village Panchayat, the income of such company or person from the transaction of such business shall, for the purpose of levying profession tax under the Act during that half year be deemed to be-
6. Percentage of turnover. — For the purpose of calculating the income for levying profession tax, the percentage of turnover or business under clause (b) of Rule 5 and Rule 7 shall be as specified in the following table: Provided that if in any case, the income so calculated is less than the minimum sum
** Added in S.R.O No. 322/2006, dtd 28-03-2006
specified in column (3) of the said table, the percentage shall be enhanced to such a rate as would yield such minimum sum:
(1) (2) (3)
|(1)||Where the turnover of business exceeds 20 lakhs of rupees||3||80,000|
|(2) Where the turnover of business exceeds 16 lakhs of rupees but docs not exceed 20 lakhs of rupees||3||54,000|
|(3) Where the turnover of business exceeds 8 iakhs of rupees but does not exceed 16 lakhs of rupees||3.5||36,000|
|(4) Where the turnover of business exceeds 4 lakhs of rupees|
|but does not exceed 8 lakhs of rupees||4||24,000|
|(5) Where the turn over of business exceeds 2 lakhs of rupees|
|but does not exceed 4 lakhs of rupees||5||15,000|
|(6) Where the turn over of business exceeds 50,000 rupees|
|but does not exceed 2 lakhs of rupees||6||6,000|
7. Determination of income when business is transacted in two or more Village Panchayat areas. — Where a company or person transacts business, partly in the area of a Village Panchayat and partly outside such area the income of such company or person from the transaction of such business in the area of the Village Panchayat shall, for the purpose of levying profession tax under the Act, be deemed to be the percentage calculated with reference to Rule 6 of the turnover of the business transacted in such area during the half year or the corresponding half year of the previous year, as the case may be:
Provided that in the case of a company or person assessable to income tax, the total profits earned by the company or person as disclosed by the income tax assessment for the year comprising the half year for which the profession tax is to be levied, shall be divided in the proportion of the turnover of the business of the company or person in the Village Panchayat area and outside for the purposes of assessment to profession tax.
8. Determination of turnover. — For the purpose of clause (b) of Rule 5 and Rule 7, the turnover of business in any Panchayat area means the aggregate money value of the goods produced, manufactured, purchased or sold or of any other business transacted in such Panchayat area.
Explanation. — In determining the turnover of business under this rule, —
9. The **[Secretary] to classify tax. — (1) The **[Secretary] shall assign to
the company or person the class in the scale appropriate to the half yearly income of such company or person as estimated by it.
(2) The Standing Committee may, when classifying any company or person under sub-rule
(1) do so on general considerations with reference to the nature and reputed value of the business transacted, the quantity and number of articles dealt with, the size and rental of business premises,
the number of persons employed, the amount of agricultural income derived, the amount of income tax or agricultural income tax paid by such company or person.
10. Service of notice and the levy of profession tax. — (1) If, in the opinion of the **[Secretary] profession tax is or will be due from any company or person for a half year, it shall serve a notice in form No. VI on such company or person in the succeeding half year requiring the company or person to furnish a return within 15 (fifteen) days showing the income on the basis of which, according to such company or person, it or he is liable to be assessed to profession tax for the half year in question. Thereupon such company or person may submit a return showing the income derived by it or him during the half year for which profession tax is claimed or for the corresponding half year of the previous year and produce any evidence on which the company or person may rely in support of the return made.
(2) If the **[Secretary] is satisfied that the return is made as required under sub-rule
Explanation. — In cases not falling under clause (b) of Rule 5 or under Rule 7, if the company or person produces the notice of demand of income tax served on it or him under Section 156 of the Income Tax Act, 1961 for the year comprising the half year in question, the Standing Committee shall be bound to take one half of the income mentioned in such notice of demand as the income for the purposes of levying under the Act.
(4) The **[Secretary] may, when classifying any company or person under sub-rule
13. Requisition on owner or occupier to furnish list of persons liable to tax. — The
Secretary may, by notice, require the owner or occupier of any building or land and the Secretary
** Substitued by S.R.O No.322/2006, dtd. 28-03-2006
or manager of a hotel, boarding or lodging house, club or residential chambers to furnish within a specified time, a list in writing containing the names of all persons occupying such building, land, hotel, boarding or lodging house, club or residential chambers, and specifying the profession, art, or appointment of every such person and the rent, if any, paid by him and the period of such occupation.
14. Requisition on employers or their representatives to furnish list. — The Secretary may, by notice, require any employer or the head or Secretary or Manager of any public or private office, hotel, boarding or lodging house or club or a firm or company,—
(l)The Secretary shall, immediately after the expiry of the period required for the determination of profession tax of a half year, require the head of office or employer in Form No. 1, to furnish, within fifteen days, the details of total salary or income of the employees in Form No. II.
17. Determination of tax and intimation. — (1) The **[Secretary] shall, as soon as possible on the receipt of particulars in Form No. II assess the tax as required under Rule 7 of the Kerala Panchayat Raj (Taxation, Levy and Appeal) Rules, 1996 and send a copy of the bill or notice of demand of tax so assessed to the concerned head of office or employer to exhibit in the notice board or do in whatever manner they deem fit so that the bill and demand notices have come to the notice of the concerned employees. The employee concerned may, if there is any objection against the assessment of tax, file the same before the employer or head of office within 30 days from the date of receipt of such notice.
(2) Notwithstanding anything contained in any other rules issued under the Act, a public notice issued under sub-rule (1) dispenses with the necessity of issuing tax assessment notice separately to each person.
** Substituted in S.R.O No.322/2006, dtd.28-03-2006
18. Demand of leviable tax. — (1) The Secretary shall, immediately after the time fixed for submitting objections against the assessment of profession tax and in other cases immediately after the disposal of objections, get two copies of the bill/demand notice to tax payers in Form No. Ill prepared and forward the same to the employer along with the application (with two copies) in Form No. IV and the employer/Head of Office shall serve the same to the employees/labourers there within the period specified in the notice and shall return the duplicate with the acknowledgement of its receipt.
19. Employer to Serve Bill/Demand Notice. — (1) The head of office/employer shall, immediately on receipt of the notice demanding profession tax to the employees/ labourers,
** Substituted in S.R.O No.322/2006, dtd.28-03-2006
original and in the duplicate copy of the Bill/Demand notice and take immediate action on the presumption that the notice has been duly served on them. The head of office/employer shall keep the original of such notice in his possession and return the duplicate to the Secretary with necessary certificate.
20. Deduction of profession-tax from salary. — (1) The head of office/employer shall, in case where the employees/labourers who are in the acquittance roil receiving their wages or salary by cheque/ demand draft, immediately on serving the notice to those who are liable to pay profession-tax, deduct such profession-tax from the salary or wages for that month.
21. Payment of Profession-tax by self drawing officer. — (1) A Self drawing officer shall, when he becomes a tax payer, make arrangements to remit the profession-tax in Village Panchayat or bank within the date and time specified in the bill/notice of demand.
and if convicted, shall be punished with fine of Rs. 100.
25. Removal of difficulties. — If any difficulty or doubt arises in giving effect to these rules, such matters shall be referred to the Government and the decision of the Government thereon shall be
|(See sub-rule (1) of Rule 16)|
|Requisition of details of Employees|
|.............. Village Panchayat.|
Subject; — Profession-tax assessment-Requisition of details of income of employees,to assess the profession-tax for the half year ending………. reg.
Reference: —Rules 14 and 16 of the Kerala Panchayat Raj (Profession-tax) Rules, 1996.
As per the rules referred to above, I request you that the Particulars regarding the total income of employees/labourers engaged in any worker employment in your establishment for an aggregate of not less than 60 days in half year ended ........ may be submitted in form No. II enclosed herewith within 15 days after the receipt of such application for the purpose of assessing the profession tax; and
The non-compliance of furnishing of details so requested within the time specified or furnishing false information shall be an offence under Section 263 of the Kerala Panchayat Raj Act, 1994 and Rule 24 of Kerala Panchayat Raj (Profession-tax) Rules, 1996.
I hereby inform you that the copy of particulars forwarded in Form No. II shall be published in the notice board of your establishment, for a period not less than 15 days from the date of such despatch, for the general information and verification of employees/ labourers.
(See Rules 14, 16)
Official address (including Division Number,
Salary (including special pay & personal pay)
Other fixed Allowances
Date of entry in service
If relieved, that date
If out of station due to transfer, pension etc.,permanent address
Head of Office/Employer.
[See Rule 18 of the Kerala Panchayat Raj (Profession Tax) Rules, 1996 and Rule 8 of the Kerala Panchayat Raj (Taxation, Levy and Appeal Rules, 1996].
WHEREAS, on the basis of income for the first/second half year ending............. furnished by your Head of office/Employer you are liable to Profession Tax for that half year and your Profession Tax has been duly assessed under Rule 6 of the Kerala Panchayat Raj (Taxation, Levy and Appeal) Rules, 1996 and Rule 17 of the Kerala Panchayat Raj (Profession Tax) Rules, 1996.
AND WHEREAS, the details of such tax assessment has been published in the Panchayat and in your establishment, but you have not raised any objection within the specified time against the tax assessment/the objection raised by you have been disposed off.
NOW THEREFORE, I hereby demand you to pay Rs ............... (in figures) ............. as Profession Tax for the employment held/profession exercised in the establishment for the half year ending.............
Immediately on receipt of the notice, the Head of Office/Employer is bound to deduct the above said amount from your salary. In the case of self drawing officers such amount .shall be given to the employer from the salary-drawn, immediately on receipt of the notice.
If the Employer/Head of office who is liable to remit the Profession Tax as per demand notice within the time specified under the rule does not remit accordingly, such tax shall be recovered from him as per Section 205 read with Section 210and he is liable for punishment as provided in the law for the failure, lapse or such deeds thereon.
It is also stated that any appeal on the demand shall be considered only if it is satisfied that the full amount in the notice has been remitted as provided in Section 276.
(See Rule 19)
Requisition for the service of demand notice and for the collection of Profession Tax
........ Village Panchayat.
Sir, Sub: —Collection of Profession Tax—Requisition for the service of demand notice and for collection and remittance of tax amount — regarding. Ref: —Section 205 of the Kerala Panchayat Raj Act, 1994 and Rules 19 and 20 connected therewith.
As per the provisions of the above said Act, I am sending herewith two copies of the demand notice for Profession Tax for the Half Year ending 30-9-199—/31-3-199—of the employees/labourers in your establishment. The list showing the tax payees and the demand amount is also enclosed herewith.
1 hereby request you, —
I also inform you that non-compliance of any of the above said requisitions is an offence under Rule 24 of the Kerala Panchayat Raj (Profession Tax) Rules, 1996 and that Section 210 of the Act and the relevant rules made thereunder shall be binding if the conditions of the demand are not complied with or on failure to deduct, collect and to remit the tax amount within the specified time. It is also hereby informed that non-compliance of any of the directions mentioned above shall be an offence under Rule 24 of the Kerala Panchayat Raj (Profession Tax) Rules, 1996. and that failure to deduct, realise and remit the total demand amount within the specified time shall be an offence under Section 210 of the Act and the rules made thereunder.
Yours faithfully, Secretary, ......Village Panchayat.
|Serial No||Name of Tax||Demand Amount||Date of sending||Date of service||Present address||Date of returning|
|payer and||Demand Notice||of Demand||of taxpayer if out||of the second|
|Demand No.||Notice||of station by||copy|
|Signature (with date)||Signature (with date)|
|Head of Office/employer|
In the case of person who is transferred from one office to another office in the same department, the Officer who relieves him shall enter the Profession Tax to be remitted by him in the Last Pay Certificate and shall realise and remit the amount and in the case of a person who retires from services, salary shall be disbursed only after realising the tax amount from his last salary [See Sub-rules (4) and (5) of Rule 20].
|(See Rule 18) Name of the Village Panchayat................... Name of establishment...................................... Half Year:|
|In the case of deduction from salary In the case of self drawing Officers|
|Unit/section of employees/labourers Date of deduction from the salaryDate of remittance of amount in thePanchayat, Cheque/D.D. No. If byDate of remittance of amount in theCheque/D.D.No., date. If by cash,No. and date of receipt issued by theDate and details if any other notice is|
|Name and Designationwith Code NumberDemand NumberDemand AmountDate of service of NoticeAmount collectedcash state the particularsDate of collection state the particularsDate of issue of receipt toemployees/labourers|
|1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.|
(Signature) (Secretary) Secretary/Verification Officer: Employers/Head of Office
[See Sub-rule (1) of Rule 10]
No................FromThe Secretary,........... Village/Panchayat.
Sub. — Assessment of Profession Tax—Furnishing particulars of income for levying Profession Tax for the half year ending .........Regarding.
Ref.— The Kerala Panchayat Raj (Profession Tax) Rules, 1996.
The correct details of your income or the income of your establishment from profession or from other means for the half year from 1st April 199 ....................to 30th September, 199.... 1st October, 199....to 3IstMarch, 199 .......... shall be furnished in Form No..........and forwarded to this office within 15 days from the date of receipt of the letter containing the requisition. If, for any reason, the filled up form is not furnished or false informations are furnished, prosecution steps will be taken against you in accordance with the provisions of Section..............and the tax to be levied shall be determined by the Standing Committee as per sub-rule (3) of Rule 10.
Particulars of installments regarding the income to levy profession tax for the half year ending...............are given below.
(4) Where the business is transacted exclusively within the Panchayat area,—
(i) the turn over of the business transacted within the area during the half year; or
(c) from agricultural income.
|Date:||....... Village Panchayat.|
Statement submitted in the office of the Village Panchayat for calculating the total income for the half year/one year from 1st April, 199............ to 30th September, 199 ........ /1st October, 199.....to 31st March, 199........ in accordance with Rule 10 of the Kerala Panchayat Raj (Profession Tax) Rules, 1996 :
Name : Address : Occupation : Place of work :
Serial Particulars Amount Remarks No. Rs. Ps.
|4||Interest from money transaction,|
|5||Rent of building etc.|
|As my job in this period is in the.......................establishment ................... the local authority|
has levied Rs.....................as profession Tax.
Serial Particulars Wages Expenditure Remarks No. Rs. Rs.
2. AGRICULTURAL INCOME 1 Income from paddy cultivation in.................hectare/acre.............cent/are of land. 2 Income from other items in ......................hectare/acre ............. cent/are of land . 3 Income from agricultural land and other items.
As may permanent residence is under .......... local authority the income furnished here
is from my agricultural property within the ..................... Village Panchayat
Income derived by me from............. properties under..........local authority, also furnished
Serial Particulars Amount Remarks No. Rs. Ps
Since my permanent residence/place of work is under. .............local authority, an amount of Rs....... has been assessed as profession tax on me for the year.... particulars furnished in this statement about me as/has not been taken into account there proper and true account on details given above has/has not been maintained.
(Sd.) Place: Employer/establishment/ Date: person/tax payer.
(This does not form part of the Notification, but is intended to indicate its general purpose.)
Section 204 of the Kerala Panchayal Raj Act, 1994 (13 of 1994) empowers the Village Panchayat to levy profession tax from those who are working in the area of a Village Panchayal. This Notification is intended to achieve the said object.