The Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987 Act 22 of 1987 Keyword(s): Assessing Authority, Employee, Employer, Local Authority, Profession Tax, Salary or Wages Amendments appended: 29 of 1996, 3 of 2003, 17 of 2003, 14 of 2012 DISCLAIMER: This document is being furnished to you for your information by PRS Legislative Research (PRS). The contents of this document have been obtained from sources PRS believes to be reliable. These contents have not been independently verified, and PRS makes no representation or warranty as to the accuracy, completeness or correctness. In some cases the Principal Act and/or Amendment Act may not be available. Principal Acts may or may not include subsequent amendments. For authoritative text, please contact the relevant state department concerned or refer to the latest government publication or the gazette notification. Any person using this material should take their own professional and legal advice before acting on any information contained in this document. PRS or any persons connected with it do not accept any liability arising from the use of this document. PRS or any persons connected with it shall not be in any way responsible for any loss, damage, or distress to any person on account of any action taken or not taken on the basis of this document. TBE ANDHRB PRBDESH TBX ON PROFESSIONS, WE, CB13;LNGS AND mYMIWl3 ACT, 1987. ACT NO. 22 OF 1987.*- [18th April, 1987.1 An Act to provi.de for the levy and collection of a Tax on Professisus, Trades, Callings and Employments. Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the Thirty- eighth Year ofthe Republic ofIndia as follows:- 1. (1) This Act nay. be called the Andhra Short title Pradesh Tax on Professions, Trades, Callings and extent and Employments ,act, 1987. cornmence- . E rnent *Received the assent of the Governor on the 16th Aprll, - .- 1987. For Statement of Objects and Reasons, please see the Andhra Pradesh Gazette, part IY-A, Extraordinary, dated the . 27th March. 1987,at page 32. (2) it extends to the whole -of the State of Andhra Pradesh. (3) It shall come into force on such date as the Government may, by notscation, appoint, mhitionk 2. In this Act, unIess the con!-ext otherwise requires:- (a) 'kpp~htee uqority " means the appellate authority appointed under section 3 ; (6) assessee mearis a person or employer " " by whom tax is payable under thts Act ; (F) " assessing authority means an. assessing " authority appointed under section 3 ; Id) *' Commissioner means the Commissioner " of profession tax appointed under section 3 ; . (e) " employee " means a person employed on salary or wages and includes ,- (i) an employee of the Central Govem- ment or any State Governme~tto whom the salary is paid either from the Consolidated Fund of Iqdia or of a State ; (ii) a person in the service of a body, wherhcr incorporated or not, which is owned or controlled by the Central Government or any State Government where the body operates in any part of the State, even though its bead-quarters may be situated outside theState'; and (iii) a person engaged in any employment of an employer, not covered by items (i) and (ii) above ; (1) employer " in relation to an employee " earning any salary or wages on regular basis under him, means the person or the officer who is respon- sible for disbursenient of such salary or wages ; and I. hc1udr;s the hzad of ~n!: Office or any establishment as weU as the manager or agent of the employer ; (g) " Government " means the State Govern- ment of Andhra Pradesh ; (li) "local authority " means- (i) in the City of Hyderabad and in the City of Secunderabad, excluding the Cantonment area, the Municipal corporation of Hydcrabad and in the city of Vijayawada, ihe Municipal Corporation of Vijayawada and in the city of Visabapatnam, the Municipal Corporation of Visakhapatnam and in any other Municipality, the Municipal Council concerned ; (ii) in any area which is comprised within ,the jurisdiction of Gram Pa~~ch~yathte, Gram Panchayat concerned ; and (iii) in any other area, the authority legally entitIed to or entrusted by the Government wjth the control or management of a profession tax; li) " notification means a notification pub- " lished in the Andhra Pradesh Gazette, and the word - ' notified ' shall be construed accordingly ; (jl "person" means any person who is en- gaged in any profession, trade, calIiug or empIoy- ment in the State of Andhra Pradesh and includes a Hindu undivided family, firm, company, corpora- tion or other corporate body, any society, club or association, so engaged but does not include any person who earns wages on a casual basis. Explatrafion : Every branch of a firm, com- '. L psoacniye,t yc, ocilpuobr aoiiro nas soor ciaottihoenr shcaolilp obre atdee c.n bzocdd y, toa ,nbye . a perscn ; (k) 5mscribcd " n~cansp rerrribcd by rules . -,\ m ' made by thr: Government under this Act, (I) "profession tax means a tax leviable under " his Act ; (m) "salary or wages includes pay or wages, " dearness allowances ana all other remunerations re- ceivid by any assessee on regular basis, whether payable in cash or kind and also includes requisitions and profits in lieu of salary as defined in section 17 C43c notfn r1 9A6c1t. ' bofo ntuhse inT nacncyrn feo-tramx aAncdt, o1n9 6a1n, yb uatc cdoouenst onro tg raintucliuiyd e; (n) Scheduls " means a Schedule appended " io this A C ~; (0) " year" means the twelve moni-hs ending on the 31 st day of March. v Appoirltrnent 3. (1) The Gove~nment may, by notification, oallioa nCcor rnmi- app3int 8 C~lnlIIi~sionof~ rP rofession Tax to exercise othcr the pavers and perform the functions conferred on oficer, or cnirusted to him by or under this Act. (2) The Government may -also appoint an as- sessing authori-iy, appcIlate aufhoriiy and such n u - ber of other officers as they deem fit for the purpos'e of exercising the psrvers and performing the functions respeciively conferred on or entrusted to them by . or under lhis Ad. Levy nnd 4. (1) Thcrc dldI bz levied and collated a tax r'liargo of on professions, irades, callings and employments for tax. the benefit of rhr: State. (2) Every person cngaged in any prof<ssion, trade, calling or employment in he State and falling under any one or ,oiher of Ihe classes spzcified in coIumn (2) of the First Schedule, shall be liable to pay n tax at the rate specified in the corresponding entry in column (3) thereof. 5. (I) The tax plyabIe ullder this Act, by any ~mp~oytt's pbye rshoins .e emarpnloinyge ra f rsoamla rtyh eo rs awlaargye ,o rs hwaallg eb ep adyeadbulec tetod ldgiaeb;d;iu~lictty a2ton d such person, bzfare such salary or wage is pqid to ,,ployccs. him, and such employer shall, irrespxtive of whether such deduction has ben made or not, wben the salaly or wagc is paid to such persons, be liablc to pay tax on behalf of alJ such persons : Provided that, where the employer is an officer of the State Government or the Central Government, the manncr in which such employer shall dischadr e thc said ljabilily shall be such as may be prescrib : Provided further &at, where any pzrson earning a salary or wage (4 is also covered by one or more entries oiher than entry 1 in the First ScheduIe and the rate ' of tax under any such other entry is more than the . ratc of tax undcr miry 1 in that Schedule ; or (b) is simultaneously engaged in emploqrnent of ]nore than onc employer ; and such pzrson furnishes to his employcr or emplo- yers a cerLificate in ihe prescribed form declaring, inter-alia, that he shaU get enrolled under sub-section (2) of scciion 6 and' p3y the tax himself ; then lire cmployer or employers of such person sha!l not deduct the~taxf rom the salary or wage p~yable lo sucll pLrnsorl acd such cmploycr or employers, as the case may be, shall not be liable to pay tax on behalf of such person. Regis11a fiun 6. (Ij Every assess= ltiot being an oficer of the and cnrol- mt01, Staie Government or the Central Government) liable to pzy tax under section 5 shall ob:ain a certificate , of registration from fhe assessing authority in the prescribed manner. (2) Every assessee (other than a paon earning sdary or wages, in respxt of wh~mt he tax is payable by his employer), Iiable to pay tax under this Act, shall obtain a wfiificate of enrolment from the assessing auhorily in the prescribed manner. (3) Every assessee required to obiain a ertifr- cate of registration or enrolment under this bction shall,- (a) within tllil-iy days from the date of com- rnencemen; of this Act ; or (b) if hc was not engaged in any profession, tradc, calling or en~pIoyment on the date of such commencennent, ~viihint biriy days of his homing liable to pay tix ; apply for a certificaie of registration or cnrolme~~otr a revised certificate of enrolment, as the mse may bc to the assessin2 auihoriiy in the presci.ibed form and, 131~a s:essing au!hori'ly shall aficr making such enquiry as nlay bz necessary within ihiriy days of thc receip': of the applicaiion (wvl~ich pzriod in the i firs? ydar fr-on~: hz corlznlencement of rhis Act, shall br: cxicndcd ic, llirdy d;iss) if il~cl cpp!icx~ioni s in ! order, gran? him such ccriific3!c of scgistration or tnrolmrnl. (4) The assessing authority, shall mention in every ccrtjficate of enrolment, the amount of tax payable .by the holder according.t o the First Schedule and the date by which it shall be paid, and such cedi- ficate shall serve as a notice of dema~dfo r purp~se of section 12. (5) Where an assessee Liable to registration or enrolment has wilfully faiIed to apply for. sttch ccrti- ficate within the time specified In. sub-section (3), the assessing authority may, &:er giving him a reasonable opportunity of being heard, impose a penalty which shall not be less than rupces ien but which: shall dot exceed rups twenty for each day of dehy in case of an employer.a nd not exceding rupees five for each day of delay in case of ochers. . . (6) Where an assessee liable to registratron or endment has deliberately given false informat ion in any application submitred under this seciian, the assessing authority may, after giving him a reasonablr: ~pportunityo f being heard, irnp~ea penaky which sllall not be less than rupees one hundred but which shd not exceed rupees one rhousand. 7. (I) Every assessee register& under this Act, ~cturrs. shall submii to the assessing authority a re<.~trnin ,.. such fprm, for sudl p2riod or periods and hy such dates as may be prcscj-ibcd showing th~zcrcinl ilt sala- ries and wages pid by -him and ihe amoun! of rax .deducted by him in rcspcct thereof. (2) Every such return shall bc accqmpanicd by a treasury challar~ in proof of paymerlr of full ' amount of tax due according to the retdrn, and return without such proof of plyrnent sha!'] not be . deemed to have bcen duly submiited. (3) Wh~iea n asscssw has wi~hoittr casonablc . --I . caux f&Y! fu submit such rclurn withi~ir hl: sp:c:ci,'ied period, the assessing authoriiy may, after giving hi a reasonable opp~rtunity, of making representation -t imp~suep on him a penally which shalI not bc less than rupees five but which shall not exceed rupees one , hundred for each day of delay. Assessment of an 8. (1)- If tlie assessing authority is satisfied -' that Ihe reiurn submitted by an assess= is correct and complete, ii may accep: the return, If the return appears to it to be incorrect or incomplete it shall, after giving rhe assessee a reasonable opporiuniiy of proving {he correctness or completeness of Ihe return submitted by him and making such enquiry as it deemed necessary, assess to the best of its judgment, ihe-a mount of tax due from the assessee. (2) The amount of tax due from any assessce - shall be assessed separately for each year within a period of four years from zhe expiry of the y:sr to which the *assessment, relates. -d (3) ,If any assessce has failed to get himself registered or haviug been registered, has failed to sub- mit any return, the assessing +aufhori;y shalI, afier giving the assessce a scasonablc opp xtunify of making represen!ation and afier making such inquiry as lic deems necessary pass an srdcr assessing the amaunt .-I of tax due, Io the best of its judgment. (4) The amount of tax so asseswd shsI1 's.: plid within w~ccn days of rcmip'. of the notice of dcinand from the assessjllg authority. (5) In makmg an assessment under sub-section .(I), the assessi~lga uthority if it is satisfied tkdl the csmpcd assessment was due to witful non-disclosure , of iilforn~ativrl or nIiempf to evade Ihe tax by thc asscssc,e, IJX assessing aulhority may also dircci to psy in zddilion lu thc tax asscsscd, a penalty which I shal not be less than one'bdhalf times the tax sq zssessed but which shall not exceed three times the tax so assessed : Provided that no penalty under this sub-section shall be imposed unless the asscssee affected has had a reasonable oP p ortunity of showing cause -' agaiust the imposition o such penalty. , 9. If for any reason any tax payable under this of mped Act, has escaped assessment or has been,, under under assessed or assessed at a lower rate than the +r=d tax. rate at which it is assessable, the assessing authority may at any time within four years from the expiry of the year to which the tax relates, promed to assess or reassess the tax, as the case may be, to the best of its judgment after issuing a notice to the asses- , set: conmmed and- after making such enquiry as it considers necessary : . Provided that the tax shall be charged at the rate at which it would have been clprged if such tax had not escaped assessment or, as the case may be, had not been under assessed or asscsscld at a rate lower t h a ~th e rate at lvhich it was assessable. 10. The ainount of tax due from the assesse!es$mt 2of ~~It ~n for each year as spscificd in thkir enrolment .n=rtificatc .. shall be paid,- (a) beforz 30th June,. in respzct of an a~rF,,c ssee who samds enrolled btfore the commcncemeat of 2 scar or is enrollcd on or beforc th 31s: May G,C a year ; and (b) wiFitllin one iilonth of the date of enrol- ment in respect of an assessee who is enrolIcd after the 31st May of a year ; in the prescribed muner. G -71-7