Professional tax karnataka act

Profession tax is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. This tax shall be paid by every person exercising any profession or calling or is engaged in any trade or holds any appointment, public or private, as specified in the Schedule to the Act.

Tax Schedule - Rates of tax on professions, trades, callings and employments

S. No.	Class of Persons	Rate of tax
1	Salary or wage earners whose salary or wage or both, as the case may be, for a month is Rs. 25,000-00 and above	Rs. 200-00 per month
2	Persons registered or liable to be registered under the Karnataka Goods and Services Act, 2017	Rs. 2,500-00 per annum
3	Self-employed persons engaged in Professions, Trades, Callings and Employments, with a standing in profession for more than 2 years, including Legal practitioners, Consultants, Agents, Chartered Accountants and Actuaries, Engineers, Health care professionals, Estate Agents or Brokers, Beauty parlours, dry cleaners and interior decorators, Journalists and Advertisement agencies, providing entertainment using Dish Antenna Cable TV, Computer Institutes selling time, Computer Training Institutes / Driving Institutes / Technical Training Institutes, Astrologers, Astropalmists, Numerologists, Vaastu consultants and Faith healers.	Rs. 2,500-00 per annum
4	Horse owners and the trainers, Jockeys, Directors, Actors and Actresses (Excluding Junior Artists), Owners of Oil Pumps and Service stations, gas stations, electric charging stations, Owners of Nursing homes, Hospitals, Diagnostic centres, Clinical laboratories and X-ray clinics, other than those run by the Central Government, State Government and local bodies, Owners of Gymnasium and Fitness centres.	Rs. 2,500-00 per annum
5	Educational Institutions and Tutorial Colleges or Institutes other than those run by the Central Government, State Government and local bodies.	Rs. 2,500-00 per annum
6	Employers of establishments defined under the Karnataka Shops and Commercial Establishments Act, 1961, employing more than five employees.	Rs. 2,500-00 per annum
7	Licensed dealers of liquors, Money lenders licensed under the Karnataka Money Lenders’ Act, 1961, Individuals or institutions conducting chit funds	Rs. 2,500-00 per annum
8	Owners of transport vehicles (other than auto rickshaws) run on their own or through others under permits granted under the Motor Vehicles Act, 1988; Goods transport agencies (GTA) and Transport contractors including forwarding and clearing agents. Explanation- For the purposes of this entry Goods Transport Agency or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.	Rs. 2,500-00 per annum
9	Cooperative Societies registered under the Karnataka Cooperative Societies Act and engaged in any profession, trade or calling.	Rs. 2,500-00 per annum
10	Companies registered under the Companies Act, 1956 and engaged in any profession, trade or calling; Banking companies as defined in the Banking Regulations Act, 1949 Explanation.- For the purpose of this entry, ‘banking companies’ shall include any bank whose operations are governed by the provisions of the Banking Regulation Act,1949 (Central Act 10 of 1949)	Rs. 2,500-00 per annum
11	Persons other than those mentioned in any of the preceding entries who are engaged in any profession, trade, calling or employment and who are paying tax under the Income Tax Act, 1961 (Central Act 43 of 1961)	Rs. 2,500-00 per annum
12	Persons other than those mentioned in any of the preceding entries who are engaged in any profession, trade, calling or employment with a minimum of two years of standing and who are not exempted by Notification issued by the State Government from time to time.	Rs. 2,500-00 per annum

Explanation I. – Notwithstanding anything in this Schedule, where a person is covered by more than one entry in the Schedule, tax is payable under any one of such entries.
Explanation II. – For the purposes of determining the liability of tax, in terms of Serial No. 4 in this Schedule, the higher number of workers and / or employees and / or employees at any time during the year shall be reckoned as the basis.
Explanation III. – For the purposes of this Schedule where any asset or business is held on lease by a lessee, such lessee shall be deemed to be the person liable under the Act.
Explanation IV. – No tax shall be levied under this Act on any partner of a firm which is engaged in any profession, trade or calling if the tax is paid by such firm.
Explanation V. – Notwithstanding anything contained in the Schedule, every additional place of a person enumerated in any item of the Schedule shall be deemed to be a separate person for the purpose of levy of Profession tax specified in the Schedule and nothing in this explanation shall be applicable in case of additional places of business which are exclusively used as godown for storing goods.”