Professional Tax Registration

Professional Tax Registration is the subject matter of State Government. It is indirect tax which levies on income from salary or income from professional fees in case of person engaged in profession such as Chartered Accountant, Company Secretary, Lawyer, Doctor, Engineer, Architect etc., this indirect tax is levied and collected by State Government in India.

Presently there are 18 States in India which levies and collect professional Tax, these are Punjab, Uttar Pradesh, Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, Jharkhand and Sikkim.

The onus of deduction of professional tax and depositing the same with the State Government lies with the owner of the business. The owner need to enrol itself and need to take “Professional Tax Registration Certificate” (PTRC); thereafter the owner require to deposit monthly return along-with Professional tax deduction with the respective State Government.

In case of professionals where the liability of depositing lies on professional himself / herself, then in such cases the professional need to enrol itself and need to take “Professional Tax enrolment Certificate” (PTEC).

Where the business office is scattered through-out the places then Registration Certificate need to obtain separately with each registering authority with respect to the place of work falling under the jurisdiction of that authority.

Professional tax is levied as per the slab rate as defined by respective State Government, however maximum amount that can be levied as Professional Tax is INR 2,500 per annum. In certain state there is a composition scheme of professional Tax, wherein the employer need to deposit the lump sum amount in advance as per the composition scheme and forego the requirement of deposit monthly professional tax and cumbersome return, composition scheme return is simple than monthly detailed return.

Certain exemptions are also there from payment of professional Tax which varies from State to State, some of them are:

1. Individuals above 65 years of age are exempted from payment of Professional Tax.
2. Individuals who are physically challenged
3. Parents / Guardian of children suffering with permanent disability or mental disability
4. Members of armed forces are exempt
5. Women workers which are engaged in Mahila Pradhan Kshetriya Bachat Yojana.

The Professional Tax paid can be claimed as deduction in the salary income while computing and filing Income Tax Return.

Documents required for Professional Tax Registration are:

1. PAN card of Company or Firm or Proprietor in case of sole proprietorship
2. Address Details which carries proof in the form of utility bill not less than 2 months old. In case place of business is not in the name of owner of business, then NoC / Lease Deed from the landlord is required
3. Certificate of Incorporation in case of Company and Partnership Deed in case of Partnership Firm.
4. Bank Account details of the applicant along-with a cancelled copy of cheque.
5. Passport size photograph of the applicant / director in case of company / partner in case of partnership firm or any other authorised Signatory carries Authority letter in Board Resolution.
6. Shop and establishment registration certificate copy
7. Salary and Attendance register of the employees.

With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your Professional Tax registration in India and thereafter will provide you detailed analysis mentioning the law requirement and compliance need to fulfill in order to operate it economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliance. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliance need.