Profession tax taxable unit can be legislatively defined, so long as the constitutional ceiling under Article 276(2) is respected.

Article 276(2) imposes a constitutional ceiling on the amount recoverable in respect of any one person, but it does not prevent the Legislature from defining the taxable unit for profession tax. The power to levy profession tax under entry 60 of List II includes competence to create an artificial statutory deeming provision for assessment and collection, so long as the constitutional limit is respected. On that basis, the Andhra Pradesh provisions deeming each branch of a firm, company, corporation, society, club or association to be a separate person and separate assessee were analysed as a permissible method of fixing the tax unit, not as a breach of article 276(2).

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Issues: Whether the Explanation to section 2(j) of the Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987 and Explanation No. I of the First Schedule, by deeming every branch of a firm, company, corporation, society, club or association to be a separate person and separate assessee, violated article 276(2) of the Constitution of India.

Analysis: Article 276(2) places a ceiling on the amount payable in respect of any one person, but it does not prohibit the Legislature from defining the taxable unit for the purposes of profession tax. The power to impose profession tax flows from entry 60 of List II, subject to the constitutional limit, and the Legislature is competent to create an artificial statutory definition for the purpose of levy and collection. The definition of

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