https://www.taxtmi.com/caselaws?id=23657 A flat annual tax on companies under entry 19 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 was upheld as a valid classification. The court held that companies form a distinct class because of their legal character, privileges, responsibilities and greater capacity to pay, and that in taxation matters the Legislature has wide latitude to adopt broad classifications. A flat-rate levy is not discriminatory merely because further micro-classification was possible, so long as the classification has a rational nexus with the object of the enactment. The constitutional challenge failed and the petitions were dismissed. en-us Tue, 17 Oct 1989 00:00:00 +0530 Tue, 10 Sep 2013 16:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23657 A flat annual tax on companies under entry 19 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 was upheld as a valid classification. The court held that companies form a distinct class because of their legal character, privileges, responsibilities and greater capacity to pay, and that in taxation matters the Legislature has wide latitude to adopt broad classifications. A flat-rate levy is not discriminatory merely because further micro-classification was possible, so long as the classification has a rational nexus with the object of the enactment. The constitutional challenge failed and the petitions were dismissed. Case-Laws Income Tax Tue, 17 Oct 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23657