The Government of Karnataka on March 14, 2023, notified the Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2023 to further amend the Karnataka Tax on Profession, Trades, Callings, and Employments Act, 1976.
The following has been stated-
•To insert a new clause (aa) after clause (a) in section 2, so as to provide a definition for the term “agent” to mean a person acting on behalf of another person in the course or furtherance of business.
•It further seeks to insert new clause (ab) after clause (aa) in section 2, so as to provide for a definition for the term “assessment” for the purposes of this Act, to mean a determination of tax liability under this Act and includes self-assessment, reassessment and best judgment assessment.
•It further seeks to amend clause (h) in section 2, in the explanation to also include a proprietary concern to be deemed a person to remove ambiguity in levying the tax in case of a proprietary concern.
•Seeks to amend sub-section (2) of section 9 which is Assessment of escaped tax, so as to reduce penalty 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 from one and a half time the tax to equal to one hundred percent of the tax in line with GST Act.
•Seeks to amend sub-section (6) of section 10 which is Payment of Tax by enrolled persons, so as to reduce interest rate where default is committed in payment of tax so deducted by a person making a deduction from two percent per month to one and a half percent per month in line with the GST Act.
•Seeks to amend sub-section (2) of section 11 which is Consequences of failure to deduct or to pay tax, so as to 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 from one and a quarter percent per month to one and a half percent per month in line with the GST Act.
•Seeks to amend section 12 which is the Penalty for non-payment of tax, so as to reduce the penalty for non-payment of tax by a registered employer within the required time from an amount not exceeding fifty percent to a fixed amount of ten percent whether or not a reasonable cause is present
•Schedule [See section 3(2)] Rates of tax on professions, trades, callings, and employments, substituted.
[KARNATAKA ACT NO. 14 OF 2023]
