Commercial Taxes Department

APPT ACT 1987 (As amended)

The Commercial Taxes Department is the nodal agency which collects the Profession Tax dues from professionals in the State. The Department now reaching out to tax payers on a one-to-one basis to highlight the urgent need to quickly discharge the Profession Tax dues.

The Constitution empowers the levy of Profession Tax subject to a maximum of Rs.2500/- p.a. and a minimum slab of as low as Rs.110/- p.a. This is an equitous levy based on the principle of ability to pay.

The tax payers fulfill their Income Tax obligations by 31st March. And tax payers will be pleased to know that the Profession Tax paid by individuals/organisations is 100% rebatable against Income Tax dues and there is no additional levy.

In fact, the Commercial Tax Department has no hesitation in terming the Profession Tax as a benevolent and beneficial tax. A 'quid pro quo' to tax payers own community and city. The Department is sure the organisations and the individuals would respond immediately with a sense of civic pride and fulfill their Profession Tax obligations.
1. Short title, extent and Commencement
2. Definitions
3. Appointment of a commissioner and other officers
4. Levy and charges of Tax
5. Employer's liability to deduct and pay tax on behalf of employees
6. Registration and enrolment
7. Returns
8. Assessment of an assessee
9. Assessment of escaped or under-assessed tax
10. Payment of tax by certain assessees
11. Consequences of failure to deduct or to pay tax
12. Penalty for non-payment of tax
13. Recovery of tax etc
14. Appointment of collecting agents
15. Appeals
16. Revision
17. Accounts
18. Special mode
19. Recovery of tax where trade, calling etc. of employer is transferred
20. Production and inspection of accounts and documents and search of premises
21. Refund of excess
22. Offences and penalties
23. Offences by Companies
24. Power to transfer proceedings
25. Compounding of offences
26. Powers to enforce attendance etc.
27. Bar of jurisdiction of Courts
28. Protection of acts done in good faith
29. Powers to delegate
30. Powers to make rules
31. Power to exempt
32. Local authorities not to levy profession tax
33. Amendment of certain enactments
34. Cesses not to be levied in certain cases
35. Grant to local authorities for loss of revenue
36.. Power to remove difficulties
37. Power to amend First Schedule
The Statement of objects and Reasons for enacting the law which was appended to the Bill No. 30 of 1987 and published in part IV-A-Extra., A.P.Gazette d/27-3-87, read as follows :-

"STATEMENTS OF OBJECTS AND REASONS:- At present the levy and collection of profession tax is administered by the local authorities under different enactments. In order to rationalise the levy and collections of profession tax and also with a view to improve the collection thereof, it is decided by the Government to enact a single  comprehensive enactment for the purpose of levy and collection of profession tax instead of under different enactments and to entrust the administration thereof to the Commercial Tax Department for effective collection. Persons whose salary or wages does not exceed rupees one thousand per month, persons in professions whose annual income does not exceed Rs. 12,000  and traders whose total turnover i any year does not exceed rupees one lakh are exempt from the levy of profession tax.

|It has also been decided to provide for the annual grant to the local authorities concerned an amount based on the highest collections of taxes, penalties and interest in any year during the threee years immediately preceeding the commencement of this Act to compensate the loss of revenue to those local authorities since the said local authorities shall not collect any cess or tax on professions, traders, callings and employment on and from the date of commencement of this Act.

This Bill seeks to give effect to the above decision."
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