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THINGS TO KNOW BEFORE YOU REGISTER-PROFESSIONAL TAX REGISTRATION IN INDIA

INTRODUCTION:

  • Profession tax is a tax levied by the state governments in India. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. Profession tax is levied by particular Municipal Corporations. Majority of the Indian states impose professional tax. It is a source of revenue for the State government. The maximum amount payable per year is INR 2,500 & there are different predetermined slabs in different states,in line with the taxpayer’s income. It is also payable by employer of staff employed in private companies. It is duty of employer to deduct professional tax every month and sent to the Municipal Corporation. It is mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.

WHO COLLECTS PROFESSIONAL TAX

  • Professional tax is collected by the employers from the monthly salaries and then paid to the government. If employers does not deduct professional tax and pay it to govt. than, They can have penalties imposed on them for not collecting or failing to pay the professional tax. If you are not working for anyone then you are liable to pay the professional tax yourself.

STATE WISE APPLICABILITY:-

  • States where professional tax is applicable:-
    1.  Andhra  Pradesh                                  2.  Assam
    3.  Bihar                                                      4.  Chhattisgarh
    5.  Gujarat                                                  6.  Jharkhand
    7.  Karnataka                                             8.  Kerala
    9.  Madhya Pradesh                                 10.  Maharashtra
    11.  Manipur                                              12.  Meghalaya
    13.  Mizoram                                             14.  Orissa
    15.  Pondicherry                                       16.  Tamil Nadu
    17.  Tripura                                                18.  West Bengal
    19. Telangana
    States where professional tax is not applicable :-
    1. Arunachal Pradesh                            2. Haryana
    3. Himachal Pradesh                             4.  Jammu & Kashmir 
    5. Puducherry                                         6. Rajasthan
    7. Nagaland                                            8. Uttaranchal
    9. Uttar Pradesh                                    10. Andaman & Nicobar
    11.Chandigarh                                       12. Dadar & Nagar Haveli
    13. Daman & Diu                                   14. Delhi
    15. Lakshadweep                               . 

Documents Required:-

  • 1.      ID (Prefer Aadhar Card) & Address Proof (Telephone or Electricity Bill) of the proprietor/Director/Partner. 
    2.      Passport size photo 3 each of the proprietor/Director/Partner.
    3.      E-mail ID & mobile no. of proprietor/Director/Partner/Applicant.
    4.      Partnership deed( in case of Firm).
    5.      MOA/AOA( incase of company).
    6.      Trust deed (in case of trust /society).
    7.      Copy of VAT RC (if applicable).
    8.      Prescribed fees.
    9.      Pan card of company/LLP duly attested by director.
    10.  Premises proof of company, Rent agreement & NOC from the owner of such premises.
    11.  Bank account of company: Cancelled cheque and Bank statement.
    12.  Board resolution or consent statement of partner. 

BASIC

All Inclusive Fees
1699
  •  

PRO

All Inclusive Fees
3899
  •  

PREMIUM

All Inclusive Fees
5899
  •  

Procedure of Registration:-

  • The persons falling under the provisions of professional tax and the employers employing staff for their business need to obtain registration, within 30 days of becoming liable under the provisions of professional tax, from appropriate department designated for compliance of professional tax in a particular state. Person liable for pofessional tax registration can apply online on the official portal of commercial or professional tax department of respective state in which he/she is liable to pay tax.

FAQs:-

 Any person who is engaged in any profession, Trade, callings and employment in the
State of Maharashtra is liable to pay Profession Tax. A person includes Hindu undivided
family, firm, company, corporation or other corporate body, any society, club or
association

 A person / employer shall apply within 30 days of becoming liable to pay tax.

There are two types of registration. 1. E.C. : Enrollment Certificate – Every person liable to pay tax under this Act (other than a person earning salary or wages, in respect of whom the tax is payable by his employer) shall obtain a certificate of enrollment from the prescribed authority in the prescribed manner. 2.R.C. : Registration Certificate – Every employer not being an officer of Government liable to pay tax under section – 4 shall obtain a certificate of registration from the prescribed authority

 The amount of Profession Tax payable by a person is mentioned in the Profession Tax Schedule of respective state.

Yes, there is a facility of making lump sum payments for Enrolment Certificate holder who is liable to pay tax at the rate of Rupees 2500 per annum.

APPLY FOR PROFESIONAL TAX REGISTRATION