Professional Tax Registration
A State mandate.
Your professionalism, further affirmed.
Benefits
A confirmed professional, legally.
- It Is A Judicial Requirements
As per the rules and regulations of India, every employee is bound to make the professional tax payment without fail. Employers in many states of India are strictly bound by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and pay the service taxes of all the employees who work under them.
- To Avoid Paying Penalties
Failure to professional tax registration results in huge penalties that keep on increasing over time.
- Easy To Comply
When something is easy to comply, it won’t be difficult to follow. The professional tax regulations are so easy to follow that and not difficult to comply with. The registration procedures can be done quickly and the further proceedings are also much easier.
- Deductions
Deductions can be claimed in the salary on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer made the payments.
- The State Government Tax
The local authorities and the state government have the right to collect all the professional taxes based on employment, profession trades and much more. The collected amount of professional tax per annum should not go beyond Rs. 2500 per an annum.
Procedure
Different State, different procedure, different slabs.
- The applicant can apply online through CTD portal
- The applicant shall file the form and attach necessary scanned documents (Mentioned above)
- One can also apply offline by direct submitting the documents and application form with prescribed fee to the concerned State Government
- Once the applicant applied for registration, he/she should submit the hard copy to the concerned tax department
- Tax authority upon the receipt of an application shall scrutinize it for its correctness
- Once the department has scanned and verified the application, it shall approve the same and issue the registration certificate to the applicant
- Department can also raise a query in case it found a flaw in the application which shall be responded on time.
Documents required
Your credentials.
- Certificate of Incorporation, including MOA & AOA / LLP Agreement.
- PAN card of Company/LLP which is attested by the company director
- Place of business proof along with a NOC from the owner of the premises
- Bank account of the company including bank statement and cancelled cheque.
- Passport size photographs, address and identity proof from all the directors
- Board resolution or in other words, the statement of consent by the partners.
- Shop and establishment certificate
- Salary register and attendance register
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FAQs
Professional tax is a state imposed tax and is imposed on income earned by employees on rendering their services. It is to be filed annually by all the registered employers. The wages/ salary of the employees should be taken into consideration while filing the tax returns
As per the Schedule to the Profession Tax Act, every employer is liable to deduct Profession Tax, from the salary or wages paid to his employees & to pay the Profession Tax so deducted.
The following individuals are exempted from professional tax payment:
- Parents of children with a permanent mental disability.
- Members of the armed forces or members of auxiliary forces or reservists, serving in the state.
- Individuals, over 65 years of age.
- An individual who is physically challenged.
- Women engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
Any person liable to pay Profession Tax is required to obtain a Certificate of Enrolment (EC).
A person / employer shall apply within 30 days of becoming liable to pay tax.
Generally, after registration the user-id and password (for filling return electronically) can be obtained from the concerned Profession Tax authority, on production of original RC.
An employer who deducts the tax from the salary of the employee and pays to the government, such entity shall obtain registration certificate while employer if not deduct professional tax then the individual shall get enrolment certificate from necessary authority.
No, at present professional tax is imposed in following states only:
• Karnataka
• Bihar
• West Bengal
• Andhra Pradesh
• Telangana
• Maharashtra
• Tamilnadu
• Gujarat
• Assam
• Kerala
• Meghalaya
• Odisha
• Tripura
• Madhya Pradesh
• Sikkim
Responsibility to pay and deduct professional tax varies for the following taxpayers:
• Self-employed person: Himself
• Employed person: His employer
In some states, the government has initiated the composition scheme, such as in Maharashtra. In such a scheme for example, if any person liable to pay INR 2500 as professional tax can pay lump sum amount of INR 10000 and will be discharged for professional tax liability for further five years.
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