Telangana Profession Tax - Limitation 4 Years? Can AO demand Profession Tax after 4 Years?

Ashok (Tax Payer) (56 Points)

29 March 2023  

Me and my friend (two partners) are running a small partnership firm without any employees for last 10 years. We did not enroll for PT act all these years as we didn't know it is applicable to us without having employees.

Yesterday State Profession Tax Officer created enrollment based on our GSTIN and sent a notice email asking to pay tax + penalty 50% + interest 2% per month since due since the financial year when turnover crossed 10 Lakhs (around FY 2014-15).

Commercial tax officer also asked for 15000 to be paid to someone's Phonepe if I want to settle the interest & penalty. I do not want to pay this bribe. Interest & penalty alone crosses 50K as per their excel sheet.

PT Act rules at  mention AO may assess / demand with in 4 years. Is my understanding / interpretation correct? So can I just pay the actual tax for 4 years incl. current FY 22-23 and appeal to higher authority for a waiver of interest & penalty for this period?

Also Limitation Act may be applicable as this PT Act (THE TELANGANA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 1987. (ACT NO. 22 OF 1987)) is not included in the schedule of THE TELANGANA TAXATION OFFENCES (INAPPLICABILITY OFLIMITATION) ACT, 1982.(ACT NO. 17 OF 1982.) 


Just curious as per act, AO assessments are out of judicial purview? So no option other than AC -> JC -> Commissioner -> Tribunal?

Please advise the statute of limitation in case of TS Profession Tax based on available laws.

Thanks everyone for your time.