KSCAA Urges Solutions for Professional Tax Portal Issues in Karnataka

Introduction

The Karnataka State Chartered Accountants Association (KSCAA), founded in 1957, serves as a representative body for Chartered Accountants and advocates for effective solutions to professional challenges. Recently, KSCAA addressed several critical issues regarding the Professional Tax portal, which operates under the Karnataka Tax on Professions, Trades, Callings, and Employment Act, 1976.

Key Issues with the Professional Tax Portal

KSCAA has outlined several pressing concerns in a letter to the Chief Minister of Karnataka, which can significantly impact compliance for taxpayers. The key issues are as follows:

1. Delays in Enrollment Registration

There is a notable delay in the GST registration process for dealers registered under the Karnataka Goods and Services Tax Act, 2017. This delay hampers timely registration and the payment of professional tax for new GST dealers. KSCAA urges a reduction in this time lag to facilitate efficient compliance for taxpayers.

2. Challenges with Two-Factor Authentication and Password Resets

The recent introduction of mandatory two-factor authentication—requiring a username, password, and OTP—has posed several challenges:

• Difficulty accessing historical data due to OTP requirements.
• Frequent failures in OTP delivery.
• Incorrect flags on registered mobile numbers as invalid.

Moreover, registered individuals struggle to reset their passwords or update their mobile numbers on the portal, which impacts their ability to meet monthly compliance deadlines. KSCAA recommends:

• Discontinuing the OTP requirement for portal logins to streamline access while maintaining essential security measures.
• Implementing a reliable system for OTP delivery via email or alternative messaging platforms.
• Establishing dedicated customer support channels for users experiencing login and OTP-related issues.

3. Incomplete Registration Categories for Non-GST Entities

Entities not required to register under GST face challenges due to incomplete registration categories on the portal, which do not align with those outlined in the Schedule (Rates of tax on professions, trades, callings, and employments). KSCAA requests the portal reflect all categories from the Schedule to enable accurate taxpayer registrations.

4. Limited Payment Options

The current payment options on the portal are restricted to a select few banks, limiting flexibility for taxpayers. KSCAA advocates for integrating additional banking options to facilitate easier payment experiences.

5. Technical Glitches During Payment Processing

Taxpayers frequently encounter technical hurdles when processing payments, including:

• Payment pages failing to load.
• Payment options becoming unavailable.
• Failure to redirect back to the Professional Tax portal post-payment, often with error messages.

These issues cause confusion regarding payment status and necessitate manual verification by users. KSCAA urges immediate action to resolve these technical glitches and improve payment system functionalities for seamless processing.

6. "User Does Not Exist" Error

Many taxpayers face an error message stating "User does not exist" when attempting to log in, despite being registered. This issue obstructs access to accounts, hindering compliance and payment tasks. KSCAA requests urgent resolution of this recurring issue to enable seamless login for all registered users.

Conclusion

KSCAA, representing the Chartered Accountants community in Karnataka, remains confident in the leadership's commitment to an efficient tax administration system. Addressing these highlighted concerns will alleviate the challenges faced by taxpayers and enhance public trust in the government's dedication to facilitating a better business environment. The members of the KSCAA formally urge the consideration of these requests to support the Chartered Accountants and the broader trade and industry framework in Karnataka.