KNOW ALL ABOUT PROFESSIONAL TAX REGISTRATION
What is PROFESSIONAL TAX REGISTRATION?
Professional Tax is the tax levied by the various State Governments of India on salaried individuals working in government or non-government entities, or in practice of any profession, such as CAs, Lawyers, Doctors, etc. or carry out some form of business, are required to pay this professional tax.
Professional tax is imposed at the state level in India. Different states have different rates and methods of collection. It is not imposed in all states. The states which impose professional tax are Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura, and West Bengal. Professional Tax is deducted from the salary of the salaried employees by the employers and same is deposited with the State Government.
Professional Tax Registration is done through Virtual Auditor.
Reasons to Professional Tax
Employers in certain states are required to mandatorily obtain professional tax registration, deduct and pay service tax on behalf of employees.
Failure to obtain professional tax registration or remit professional tax could result in fines and penalties that accrue over time.
Compliance with professional tax regulation is easy. Professional tax registration can be obtained easily and compliance maintained easily.
Profession Tax & Slab Rates around India
Profession Tax in Maharashtra
In Maharashtra, profession tax is governed by the Maharashtra State Tax on Professions, Trades, Calling and Employment Act, 1975. All employees and professionals with a monthly salary of over Rs. 7500 must pay profession tax. Those with a salary of Rs. 7500 to Rs. 10,000 must pay Rs. 175 per month, while those with a higher salary must pay Rs. 200 a month (Rs. 300 in February). Payment of the profession tax that is collected can now be made online.
Profession Tax in Tamil Nadu
Profession tax is governed by the Town Panchayats, Municipalities and Municipal Corporation Rules, 1988. The slab rates are as follows: All employees and professionals with a monthly salary of over Rs. 3500 must pay profession tax, starting at just Rs. 16 per month and going up to Rs. 182 per month for those earning over Rs. 12,501.
Profession Tax in Karnataka
Profession tax is governed by the Karnataka Tax on Professions, Trade, Callings and Employment Act, 1976. The slab rates are much simpler here, as there is only one rate. If you earn over Rs. 15,000 a month, you must pay Rs. 200 a month as profession tax. If you do not earn Rs. 15,000 a month, you don’t pay it at all.
Profession Tax in West Bengal
Profession tax is governed by the West Bengal Tax on Professions, Trade, Callings and Employment Act, 1979. Slab rates in West Bengal start at Rs. 90 a month, for those earning a salary of over Rs. 8500 per month. The highest rate, of Rs. 200, only kicks in for those earning over Rs. 40,000 per month.
Profession Tax in Andhra Pradesh
Profession tax is governed by the Andhra Pradesh Tax on Professions, Trade, Callings and Employment Act, 1987. Only those earning Rs. 15,000 and over per month need pay profession tax, which starts at Rs. 150, and is raised to Rs. 200 per month for those earning over Rs. 20,000 per month.
Profession Tax in Gujarat
Profession tax is governed by the Gujarat Panchayats, Municipalities, Municipal Corporations and State Tax on Professions, Traders, Callings & Employment Act, 1976. The tax starts at Rs. 80 per month for those earning over Rs. 6,000 per month, going up to Rs. 150 per month for those earning over Rs. 9000 and Rs. 200 per month for those earning over Rs. 12,000.
Profession Tax Registration Process
1 WORKING DAY
You need to send in PAN cards, identity and address proofs of the proprietor/partners/directors. Details of your employees also need to be submitted.
2 WORKING DAYS
The Professional Tax application will be filed for all employees and submitted to respective authorities by our affiliate. Should all your documents be in order, this will take no longer than two working days.
7 WORKING DAYS
Within 5 to 7 working days, we will give you a basic acknowledgement. If the documents are not in order or the inspector asks for additional documents, the process will be completed as soon as you submit the additional documents. The hard copy is issued within 10 days in major cities, but would take 15 to 20 days elsewhere.
FREQUENTLY ASKED QUESTIONS
– Service tax payments must be deposited by Companies, Societies, Trust, etc., monthly. Proprietary Firms and Partnership Firms are required to make Service Tax payments quarterly.
5. What is the penalty for not obtaining tax registration?
– If tax registration is not obtained then a penalty Rs 5000 Rs. 200 a day, whichever is higher may be attracted.