Karnataka State Chartered Accountants Association (KSCAA) has sent its fourth representation to the Chief Minister and Finance Minister of Karnataka, highlighting persistent critical issues with the state’s Professional Tax (PT) portal. These problems include recurring technical glitches like login failures and slow loading, delays in reflecting new GST registrations, challenges with two-factor authentication and password resets, limited categories for non-GST entities, restricted payment options, payment processing errors, and the lack of automated recognition for tax exemptions for senior citizens and the disabled. KSCAA also points out the inability to declare business place types for godown exemptions and the non-editable nature of PIN code and legal name fields post-registration. The association urges immediate upgrades to address these operational difficulties faced by taxpayers and professionals, aiming for a more stable, efficient, and user-friendly PT portal to ensure timely compliance and reduce unnecessary burdens.
Karnataka State
Chartered Accountants Association (R)
To,
Sri Siddaramaiah,
Chief Minister and Finance Minister
Government of Karnataka
Date: Tuesday, 29 April 2025
Ref No: 012/2024-25
SUBJECT: FOURTH REPRESENTATION SEEKING CRITICAL ENHANCEMENTS TO THE PROFESSIONAL TAX PORTAL UNDER THE KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENT ACT, 1976
The Karnataka State Chartered Accountants Association (R) (in short ‘KSCAA’), is a voluntary organization established in 1957, duly registered under the Karnataka Societies Registration Act. With a legacy spanning over six decades, KSCAA has been actively engaged in representing the interests and welfare of Chartered Accountants in the state of Karnataka. Our mission encompasses addressing the professional challenges faced by Chartered Accountants as well as the broader business community, while constructively liaising with various regulatory authorities for effective and practical resolutions.
We write this letter to bring to your kind attention, once again, the urgent need for critical upgrades and enhancements to the Professional Tax (PT) portal governed under the Karnataka Tax on Professions, Trades, Callings, and Employment Act, 1976 (“the Act”). Despite our earlier submissions, we have observed that several issues and limitations continue to persist on the PT portal, causing operational difficulties not only for tax professionals but also for employers and businesses at large. The current system is affecting timely compliance, increasing the risk of inadvertent defaults, and creating an avoidable burden on stakeholders. “In light of the ongoing challenges and the lack of substantive resolution to our earlier concerns, this communication serves as the fourth formal representation from our Association on the matter.”
EXISTING ISSUES:
We respectfully bring to your attention the following key issues currently being faced by taxpayers and professionals while interacting with the Professional Tax portal under the Karnataka Tax on Professions, Trades, Callings, and Employment Act, 1976:
Karnataka State Chartered Accountants Association (R)
1. RECURRING TECHNICAL GLITCHES ON THE PORTAL
Users consistently encounter system instability on the Professional Tax portal, including:
- Login Failures: Repeated issues with accessing accounts.
- Delayed Page Loading: Significant lag in page responsiveness.
- Unresponsive Modules: Certain sections of the portal fail to load or function properly.
This issue is of serious concern as the due date for payment of annual Professional Tax for the financial year 2025–26 is 30.04.2025, which is just a day away. Inability to complete registration and payment due to technical delays may inadvertently result in penalties and fines for taxpayers.
Request: We urge the department to conduct a comprehensive review of the portal’s infrastructure to identify and rectify underlying issues, ensuring a stable and efficient user experience.
2. TIME LAG INITIATING ENROLLMENT REGISTRATION (RS 2,500 PAYABLE ANNUALLY)
There is a significant delay in the reflection of new GST registrations on the PT portal for dealers registered under the Karnataka Goods and Services Tax Act, 2017. This lag hampers timely enrollment and payment of Professional Tax for newly registered entities.
Request: We urge the department to reduce the time lag and enable real-time synchronization of GST data to facilitate timely compliance.
3. TWO-FACTOR AUTHENTICATION & RESET OF PASSWORD
The recent implementation of two-factor authentication (username, password, and OTP) has created operational challenges:
- Tax consultants and accountants are unable to retrieve past data efficiently due to the OTP requirement.
- OTPs are frequently not delivered.
- Registered mobile numbers are incorrectly flagged as invalid.
- There is no option to reset or re-register mobile numbers or passwords.
Request: We recommend removing OTP authentication for routine login while retaining it for sensitive activities. Additionally, allow users to independently update or reset their login credentials to enable uninterrupted access.
Karnataka State Chartered Accountants Association (R)
4. LIMITED CATEGORIES FOR NON-GST ENTITIES
During registration and payment, the portal offers incomplete category options for entities not registered under GST. This contradicts the Schedule of Professions, Trades, Callings, and Employments.
Request: Kindly ensure all categories as per the Schedule are made available on the portal, allowing accurate classification and registration of non-GST entities.
5. LIMITED PAYMENT OPTIONS
Currently, the portal supports payments through a limited number of banks, restricting taxpayer flexibility.
Request: We request integration with more banks via payment gateways to ensure seamless and flexible payment experiences for all users.
6. SNAGS AT THE TIME OF PAYMENT AND ERROR AFTER MAKING PAYMENT
Frequent issues occur during payment, including:
- The payment page not loading or being inaccessible.
- Errors after successful payment, with no redirection or confirmation, creating uncertainty regarding payment status.
- Manual verification of payment status taking excessive time.
- Failure to generate or allow the download of Form 4A, even after completion of the payment process.
Request: We urge prompt resolution of these technical issues to ensure smooth and reliable payment processing.
7. AUTOMATIC RECOGNITION OF EXEMPTIONS
Under the Karnataka Tax on Professions, Trades, Callings, and Employments Act, 1976, certain individuals are exempt from the payment of professional tax. Specifically, senior citizens above the age of 60 years and individuals with a permanent disability of not less than 40% in both upper and lower extremities are eligible for exemption.
Currently, these exemptions require the annual manual submission of exemption forms, which can be burdensome for eligible individuals and result in administrative inefficiencies.
Karnataka State Chartered Accountants Association (R)
Request: We respectfully request that the system be enhanced to automatically recognize these exemptions once an exemption form is filed and approved for a particular year. This would eliminate the need for annual re-submission of exemption forms, thus streamlining the compliance process for eligible individuals and significantly reducing administrative workload.
8. MECHANISM FOR DECLARING BUSINESS PLACES AND AVAILING EXEMPTION FOR GODOWNS
As per the current provisions, Professional Tax liability is not liable for godowns, and the liability is restricted to branches other than godowns. However, the PT portal currently does not provide any functionality to distinguish between different types of business places during registration or filing. This leads to challenges in:
- Accurately reporting the number of business locations.
- Availing legitimate exemptions for godowns.
- Preventing incorrect assessments and unnecessary tax demands.
Request: We respectfully suggest incorporating a feature on the portal that allows users to:
- Enter the total number of business places,
- Clearly specify which locations are godowns, and
- Automatically apply the exemption for godowns as per the Act.
- This functionality will ensure that Professional Tax is paid only for the number of branches liable, leading to accurate payments, reduced disputes, and greater clarity for both the department and taxpayers.
9. NON-EDITABLE PIN CODE AND LEGAL NAME FIELDS
Users have reported that once registration is completed on the PT portal, the following fields become non-editable:
- PIN Code: Errors in entering or updating PIN codes cannot be corrected, which may lead to communication issues or jurisdictional mismatches.
- Legal Name: Even if a genuine error or statutory change occurs, the portal does not permit updating or correcting the legal name of the entity.
This creates significant compliance hurdles, especially when updates are mandated by other regulatory authorities or are the result of typographical errors during initial registration.
Request: We request that the portal be updated to allow for:
- Controlled editing of the PIN code with proper validation,
Karnataka State Chartered Accountants Association (R)
- Submission-based updates to the legal name field with appropriate documentary evidence and approval by the department.
Conclusion:
We hereby enclose copies of our earlier representations submitted to your esteemed office for your kind reference and consideration. We are confident in your leadership and commitment to fostering an efficient and fair tax administration system. Addressing these concerns will not only remove the challenges faced by taxpayers but also reinforce public confidence in the government’s commitment to ease of doing business.
In light of the difficulties encountered, we, the members of the Karnataka State Chartered Accountants Association, respectfully urge you to consider our request on behalf of the entire Chartered Accountants community and the trade and industry in Karnataka.
Yours sincerely,
For Karnataka State Chartered Accountants Association ®
CA Vijaykumar M Patel CA Praveen S Shettar CA Babitha G
President Secretary Chairperson,
Representation Committee
Cc to:
1. Sri. Vipul Bansal Commissioner of Commercial Taxes, Government of Karnataka
Enclosures:
1. First Representation dated 30.04.2024
2. Second Representation dated 18.06.2024
3. Third Representation dated 14.02.2025
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