The government of Punjab has passed THE PUNJAB STATE DEVELOPMENT TAX ACT, 2018 which imposes profession tax of Rs. 200 Per Month on all such persons who are assessable under the Head Income from Salaries and/ or Wages as per the Income Tax Act, 1961 and All such persons who are assessable under the Head Income from Business and/ or Profession as per the Income Tax Act, 1961.

This Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 16th day of April, 2018.

The tax under this Act shall be levied on the persons in the categories mentioned in the Schedule only if they are income tax payees i.e. the tax, for any particular financial year, shall be payable under this Act only by those persons whose taxable income for the same financial year, before allowing deduction on account of tax levied under this Act, exceeds the maximum amount which is not chargeable to Income Tax by the amount of tax payable by him under this Act for that year:

Provided that the Government may by notification, alter the rate of tax specified in the Schedule, add to or omit from or otherwise amend the Schedule and thereupon, the Schedule shall be deemed to have been amended accordingly:

Provided further that subject to such conditions and restrictions as may be prescribed, an enrolled person shall not be required to make payment of tax in respect of the period, during which he is temporarily not engaged in any profession, trade or calling:

Provided further that the Government may, by notification, exempt any person or class of persons from payment of tax subject to such conditions as may be notified from time to time.

Where a person falls under more than one category in the Schedule, he shall be liable to pay the tax only under one category.

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 wages payable to such person, before such salary or wages 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 person, be liable to pay tax on behalf of all such persons:

Provided that where any person earning a salary or wage, who is covered by any entry of the Schedule is simultaneously engaged in employment of more than one employer, and such person furnishes to his employer or employers a declaration in the prescribed form to the effect that he has obtained a certificate of enrolment under sub-section (2) of section 6 and that he shall pay the tax himself, no deduction or payment of tax shall be made by the employer or employers under this section and such employer or employers, as the case may be, shall not be liable to pay the tax on behalf of such person.

Consequences of failure to deduct or to pay tax.

(1) If an employer fails to deduct the tax at the time of payment of salary or wage, or after deducting fails to pay the tax as required by or under this Act, he shall without prejudice to any other consequences and liabilities which he may incur, be liable to pay, in addition to the amount of tax, simple interest at the rate of two per cent of the amount of the tax due for each month or part thereof for the period for which the tax remains unpaid.

(2) If a person fails to pay the tax as required by or under this Act, he shall without prejudice to any other consequences and liabilities which he may incur, be liable to pay, in addition to the amount of tax, simple interest at the rate of two per cent of the amount of the tax due for each month or part thereof for the period for which the tax remains unpaid.

Penalties.

(1) Where an employer or a person liable for registration or enrolment has without reasonable cause failed to apply for such certificate within the required time, the designated officer may, after giving him a reasonable opportunity of being heard, impose a penalty amounting to rupees fifty only for each day of delay.

(2) Where an employer or a person liable to registration or enrolment has deliberately given false information in any application submitted under this Act, the designated officer may, after giving him a reasonable opportunity of being heard, impose upon him a penalty amounting to rupees five thousand

(3) Where a registered employer or an enrolled person has without reasonable cause failed to file return under this Act within the requisite time, the designated officer may, after giving him a reasonable opportunity of being heard, impose upon him a penalty of rupees fifty only for each day of delay.

(4) If a registered employer or an enrolled person fails without reasonable cause, to make payment of any amount of tax within the required time or date as specified in the notice of demand, the designated officer may, after giving him a reasonable opportunity of being heard, impose upon him a penalty equal to fifty percent of the amount of tax

(5) Where a registered employer or an enrolled person wilfully fails to maintain the books of account or other documents as directed under sub-section (1) of section 16, the Commissioner or designated officer may, after giving him a reasonable opportunity of being heard, impose a penalty amounting to rupees fifty only for each day of delay.

(6) If any registered employer or an enrolled person, without sufficient cause, fails to comply with any of the provisions of this Act, or the rules framed there under, he shall be liable to pay in addition to the tax and interest due, a sum not exceeding rupees five thousand only and when the offence is a continuing one, with a penalty amounting to rupees fifty only per day during the period of the continuance of the offence:

Provided that no penalty under this section shall be imposed without affording a reasonable opportunity of being heard to the assesse.

Offences by Companies.

(1) Where an offence under this Act has been committed by a company, every person who at the time when the offence was committed was in charge of, and was responsible for the conduct of the business of the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and penalized accordingly.

(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act, has been committed by a company and it is proved that the offence has been committed with consent or connivance of, or is attributable to any neglect on the part of any Director, Manager, Secretary or other officer of the company, such Director, Manager, Secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and penalized accordingly.

Explanation.-For the purposes of this section ,-

(a) “company” means any body corporate and includes a firm or other association of individuals ; and

(b) “Director”, in relations to a firm, means a partner in the firm