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The Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987
An Act to Provide for The Levy and Collection of a Tax on Professions, Trades, Callings and Employments. Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the Thirty-eighth Year of the Republic of India.
Important Provision as Per Andhra Pradesh Professional Tax
A. Employer’s liability to deduct and pay tax on behalf of Employees – The tax payable under this Act, by any person earning a salary or wage, shall be deducted by his employer from the salary or wage payable to such person, before such salary or wage is paid to him, and such employer shall, irrespective of whether such deduction has been made or not, when the salary or wage is paid to such persons, be liable to pay tax on behalf of all such persons.
B. Registration and Enrolment – Every assesses liable to pay tax shall obtain a certificate of registration from the assessing authority in Form I
(a) within thirty days from the date of commencement of this Act; or
(b) if he was not engaged in any profession, trade, calling or employment on the date of such commencement, within thirty days of his becoming liable to pay tax
C. Penalty for non-payment of tax – If an assesses fails, without reasonable cause to make payment of any amount of tax within the time specified in the notice of demand, the assessing authority may, after giving him a reasonable opportunity of making his representation, impose upon him a penalty which shall not be less than twenty-five per cent but not exceeding fifty per cent of the amount of tax due. This penalty shall be in addition to the interest payable under sub-section (1) or sub-section (2) of section 11.
D. Returns – Monthly return shall be furnished in Form V along with the payment of tax due, on or before 10th day of the month succeeding the month for which the return has to be filed.
(1) Every assesses registered under this Act, shall submit to the assessing authority a return in such form, for such period or periods and by such dates as may be prescribed showing therein the salaries and wages paid by him and the amount of tax deducted by him in respect thereof.
(2) Every such return shall be accompanied by a treasury challan in proof of payment of full amount of tax due according to the return and return without such proof of payment shall not be deemed to have been duly submitted.
(3) Where an assesses has without reasonable cause failed to submit such return within the specified period, the assessing authority may, after giving him a reasonable opportunity of making representation impose upon him a penalty which shall not be less than rupees five but which shall not exceed rupees one hundred for each day of delay.
E. Recovery of tax where trade, calling etc., of employer is transferred – Where the ownership of the profession, trade, calling or employment of an assesses liable to pay tax is transferred, any tax, penalty or interest or other amount payable under this Act, in respect of such business and remaining unpaid at the time of the transfer, may without prejudice to any action that may be taken for its recovery from the transferor, be recoverable form the transferee as if he were the assesses liable to pay such tax, penalty or interest or other amount.
F. Shifting of place of work – If the holder of a certificate of registration or a certificate of enrolment in one area shifts his place of work to another area, he shall within 15 days of such shifting, give notice thereof to the assessing authority from whose office the certificate was issued, and shall, at the same time, send a copy of such notice, etc., to the assessing authority exercising jurisdiction over the area to which the place of work is being or has been shifted.
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