Representation Regarding Upgrades on Karnataka Professional Tax Website

The Karnataka State Chartered Accountants Association (KSCAA) has brought to the attention of the Government of Karnataka several critical issues faced by taxpayers using the Professional Tax website. The professional tax is an essential obligation for individuals and businesses engaged in various trades and professions, and the efficiency of the tax portal is vital for compliance. While the new website introduced by the professional tax department is visually modern and incorporates several enhancements, there are significant operational challenges that need to be addressed to streamline the user experience and ensure timely tax compliance. Text of the representation is as follows:-

KARNATAKA STATE
CHARTERED ACCOUNTANTS ASSOCIATION (R)

To,
Sri Siddaramaiah,
Chief Minister and Finance Minsiter,
Government of Karnataka

Date: 18th June 2024

SUBJECT: REPRESENTATION REGARDING UPGRADES ON THE PROFESSIONAL TAX WEBSITE UNDER THE KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENT ACT, 1976

The Karnataka State Chartered Accountants Association (R) (in short ‘KSCAA’) is an association of Chartered Accountants, registered under the Karnataka Societies Registration Act, in the year 1957. KSCAA is primarily formed for the welfare of Chartered Accountants and represents before various regulatory authorities to resolve the professional problems faced by Chartered Accountants and the business community.

Herein, we are presenting before your good selves for your kind consideration, an issue regarding upgrades and enhancements on the Professional Tax website under The Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976 (“the Act”).

Introduction:

Profession Tax is required to 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 eg: traders, doctors, clinics, manufacturers, service providers etc. Also, employers are required to collect professional tax on salary paid to employees if it crosses certain limit (presently Rs 25000 per month).

During last year, the professional tax department launched a new modern looking professional tax website for enhancing the experience of taxpayers while paying professional tax and obtaining registrations. While we appreciate the modern looking and several enhancements made in the new website, we are currently facing the following issues with the new website:

1. Time lag initiating Enrollment registration (Rs 2,500 payable annually)

Currently, there is a 30-day delay for GST dealers registered under the Karnataka Goods and Services Tax Act, 2017 to reflect the GST registration on the professional tax portal. This delay hampers the timely registration and payment of professional tax for a newly registered dealer under the GST Acat. We humbly suggest reducing this time lag to expedite the enrollment registration process.

2. Reset of  password and OTP process under Employer Login

The process for resetting passwords is currently cumbersome, as the portal does not display the mobile number to which the OTP is sent. Additionally, historical registrations migrated to the new website often have outdated mobile numbers. We request an option to reset the password via the GST portal or to extract updated contact from the GST portal for sending OTPs.

3. Streamlining Tax Payment and Return Filing Under Employer Login

The current process for paying tax and filing returns under the employer login involves multiple steps, causing inconvenience and the current process involves selecting multiple tabs and returning back to the home page multiple times. We humbly request the following streamlined process:

• Select the month
• Provide the number of employees with a salary above Rs 25,000
• Click on initiate payment
• Select payment mode
• Redirect to the bank website
• Complete the payment process
• Click on file return
• Automatic return download

Simplifying these steps will significantly enhance user experience and efficiency.

4. Frequent Password Expiry

The employer portal password expires frequently, necessitating a manual reset. We suggest allowing employers to enter the old password and be redirected to a password reset page without requiring OTPs.

5. Extention of due date for payment of professional tax for FY 2024-25

We had earlier requested your goodself (enclosed as Annexure 1) for extension of due date for payment of professional of Rs 2,500 per annum for FY 2024-25 as the website was not functioning for more than a week before the due date. The notification related to this extension was issued on 30t^h May 2024 and the extension was granted till 31st May 2024, providing a very short time for taxpayers to act. We request you to do the needful in respect of extension of due date for payment of profession tax which was available only for 2(Two) days after the order was passed. Further, we humbly wish to bring to your notice that certain taxpayers had voluntarily paid interest and applicable penalty in the absence of extension notification on time. We request your good selves to take necessary steps to safeguard the interests of the diligent tax payers who have paid tax along with interest and penalty.

As guardians of the accounting profession and representatives of various sectors of trade and industry, we recognize the significance of timely tax compliance for sustaining economic activities in the state. As a profession that has been bestowed a privileged position in society, we deal with a wide range of issues that has a public interest angle and represent on such matters.

Taking into consideration the hardships caused, we the members of Karnataka State Chartered Accountants Association, on behalf of the entire Chartered Accountants community and also on behalf of the trade and industry in the state of Karnataka appeal to your good selves to kindly consider our above request.

Yours sincerely,

For Karnataka State Chartered Accountants Association ®

Cc to:

1. Ms. C. Shikha, IAS Commissioner of Commercial Taxes, Government of Karnataka

2. Ms. Sonala G Naik, Joint Commissioner of Commercial Taxes (Minor Acts), Government of Karnataka