Karnataka state -professonal tax

This query is : Resolved

V MURALIDHARAN (Querist)
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03 February 2010 One of my clients is promoting a holiday resort in karnataka.The construction is going on inthe name of the company X.
All the expenses relating to the company
was transferred to the company Y as Y entered into with Joint venture with Z for the joint promotion of the project. The transfer of expenses incurred by X took place on 31.03.2009.The professional tax officer wants to cover the company Y in which he wants to assess the libility including the expenses of X since the project commenced.The Resort is still under construction and has not commenced the commercial operations.
Kindly advise:
1. Whether profession tax is applicable
inspite of the fact the company has not commenced its operations?
2.Even if applicable whether he can add up the expenses incurred till 31.03.2009 in the company X ?
3.What is the interest rate applicable and the penal provisions?
4.The fact is that both the registered offices of the company are at chennai where as the project is in Karnataka.
whether the company can opt to pay at chennai if tax is applicable?
5.Can I have the link to the Karnataka profession tax act and rules(latest) applicable?
Thanks for the guidance
Muralidharan
Chartered Accountant
09600933390/09686857540

M Prabhakar Menon

M Prabhakar Menon (Expert)
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04 February 2010 Professional Tax is a local levy of the state where the entity operates and is not similar to issues considered in central levies. Professional tax is levied on employment and is based on the remuneration of the employee.Use the internet for other issues