In addition to remitting Profession tax (PT), companies – conducting business transactions in Chennai – need to pay what is known as Company Tax to the Corporation of Chennai every six month. We find many companies being unaware that there is something called Company Tax to be paid. According to estimates published by the Corporation of Chennai, there are over 25,000 companies that do not remit Company Tax. A large number of companies do not pay Company Tax probably out of sheer ignorance.
The corporation of Chennai is empowered to levy Company Tax as per Section 110 of The Chennai City Municipal Corporation Act, 1919. Every company (Private Limited and otherwise) which operates within the city of Chennai in any half year for not less than 60 days in aggregate shall pay Company Tax every half year to the Corporation of Chennai. The Company Tax is liable to be paid twice (half yearly – Apr to Sep and Oct to Mar) in a financial year.
Company Tax slabs
Calculation of Company Tax is based on the paid up capital of a company. Currently (Mar 2014), the Company Tax is calculated as per the below slabs.
|Paid up capital of the company||Company Tax for the half year in Rs|
|Less than Rs 1 lakh||100|
|Rs 1 lakh & more but less than Rs 2 lakh||200|
|Rs 2 lakh & more but less than Rs 3 lakh||300|
|Rs 3 lakh & more but less than Rs 5 lakh||400|
|Rs 5 lakh & more but less than Rs 10 lakh||500|
|Rs 10 lakh & more||1000|
Please ensure that your company remits Company Tax to the Corporation of Chennai every 6 months.
It is time consuming and tiring to stand in long winding queues in Rippon Building for remitting PT and Company Tax. The Corporation has enabled online payment of Property Tax. Likewise the Corporation should consider creating a facility for online remittance of PT and Company Tax sooner than later.