204. Profession tax

  1. The profession tax shall subject to such rules as may be prescribed be levied every half year in every village panchayat area on –
      1. every company which transacts business in such panchayat area for not less than sixty days in the aggregate in that half year; and
      2. every person who, in that half year -
    1. exercise a profession, art or calling, or transacts business or holds any appointment, public or private -
      1. within such panchayat area for not less than sixty days in the aggregate, or
      2. outside in such panchayat area but who resides in it for not less than sixty days in the aggregate, or
    2. resides in such panchayat area for not less than sixty days in the aggregate and is in receipt of any income from investments.
  2. The profession tax shall be levied at such rates as may be fixed by the village panchayat not exceeding the maximum rates prescribed.
  3. A person shall be chargeable under the class appropriate to his aggregate income from all the sources specified in sub section (1) as being liable to the tax.
  4. If a company or person proves that it or he has paid the sum due on account of the profession tax levied under this Act, or profession tax levied under any law for the time being in force governing Municipalities in the State or any tax of the nature of a profession tax imposed under the Cantonment Act, 1924, for the same half year to any Panchayat or Nagar Panchayat or Municipal Council or Municipal Corporation or Cantonment authority in the State, such company or person shall not be liable by reason merely of change of place of business, exercise of profession, art or calling appointment or residence, to pay to any other panchayat, Nagar Panchayat, Municipal Council or Municipal Corporation or Cantonment authority in the State more than the deference between such sum and the amount to which it or he is otherwise liable for the profession or companies tax for the half year under this Act or the law governing Municipalities or
    Cantonment.
  5. Nothing contained in this section shall be deemed to render a person who resides within the local limits of one local authority and exercises this profession, art or calling or transacts business or holds any appointment within the limits of any other local authority or authorities liable to higher profession tax for more than the higher of the amounts of tax leviable by any of the local authorities. In such cases the tax shall be levied by the local authority which levied the higher rate of tax and shall be apportioned among local authorities in such proportion as may be prescribed:
    Provided that where one of the local authorities concerned is a Cantonment authority or the Port authority of a major port the decision of the local authorities shall be subject to the concurrence of the Central Government obtained in such manner as may be prescribed.
  6. The profession tax leviable from a firm or association may be levied from the agent of the firm or association as the case may be.
  7. ..
    1. If a company or person employs a servant or agent to represent it or him for the purpose of transacting business in any local area of a Village Panchayat such company or person shall be deemed to transact business in that local area, and such servant or agent
      shall be liable for the profession tax in respect of the business of such company or person whether or not such servant or agent has power to make binding contracts on behalf of such company or person.
    2. Where one company or person is the agent of another company or person, the former company or person shall not be liable separately to the profession tax on the same income as that of the principal.