Panchayat:Repo18/Law Manual Page0258
204. Profession tax.- (1) The profession tax shall, subject to such rules as may be prescribed be levied every half year in every Village Panchayat area on,
(i) every company which transacts business in such Panchayat area for not less than sixty days in the aggregate in that half year and
(ii) every person who, in that half year
(a) exercise a profession, art or calling, or transacts business or holds any appointment, public or private
(i) within such Panchayat area for not less than sixty days in the aggregate, or
(ii) outside such Panchayat area but who resides in it for not less than sixty days in the aggregate, or
(b) resides in such Panchayat area for not less than sixty days in the aggregate and is in receipt of any income from investments.
(2) The profession tax shall be levied at such rates as may be fixed by the Village Panchayat not exceeding the maximum rates prescribed.
(3) A person shall be chargeable under the class appropriate to his aggregate income from all the sources specified in sub-section (1) as being liable to the tax
[Explanation. For the purpose of this section 'aggregate income' shall not include House Rent Allowance, City Compensatory Allowance, Conveyance Allowance or traveling, Allowance).
(4) If a company or person proves that it or he has paid the sum due on account of the profession tax levied under this Act, or profession tax levied under any law for the time being in force governing Municipalities in the State or any tax of the nature of a professiontax imposed under the Cantonments Act, 1924, for the same half year to any Panchayat or Nagar Panchayat or Municipal Council or Municipal Corporation or Cantonment authority in the State, such company or person shall not be liable, by reason merely of change of place of business, exercise of profession, art or calling appointment or residence, to pay to any other Panchayat, Nagar Panchayat, Municipal Council or Municipal Corporation or Cantonment authority in the State more than the difference between such sum and the amount to which it or he is otherwise liable for the profession or companies tax for the half year under this Act or the law governing Municipalities or Cantonment.
(5) Nothing contained in this section shall be deemed to render a person who resides within the local limits of one local authority and exercises his profession, art or calling or transacts business or holds any appointment within the limits of any other local authority. or authorities liable to higher profession tax for more than the higher of the amounts of tax leviable by any of the local authorities. In such cases the tax shall be levied by the local authority which levied the higher rate of tax and shall be apportioned among local authorities in such proportion as may be prescribed:
Provided that where one of the local authorities concerned is a Cantonment authority or the Port authority of a major port, the decision of the local authorities shall be subject to the concurrence of the Central Government obtained in such manner as may be prescribed.