Professional Tax Registration

Professional Tax is levied by State Government on all salaried employees, professionals, and trades in India. It is a compulsory tax paid by all the employees employed in a company. It is the responsibility of the owner or employer to deduct such tax from the salary of an employee and deposit the same with the respective State Government.

Professional tax is deducted every month from the salary of an employee and is levied on few states such as Karnataka, West Bengal, Maharashtra, etc. however it does not apply to few other states such as Delhi, Haryana, UP.

Applicability

Professional Tax applies to the following class of persons in states where it is applicable:

• Individual
• HUF
• Private/Public/One person Company
• Co-operative Society
• Association of Person
• Body of Individuals

Payment of Professional Tax

Professional Tax is paid and collected at a pre-determined slab rate depending upon respective state either annually or monthly collected by the Commercial Tax Department of the respective state. Professional tax is paid directly by a self-employed person engaged in profession or trade business and the case of salaried employees, his employer, is responsible for deducting and depositing such tax to the respective State Government.

In the case of a salaried individual, the employer shall deposit such tax every month, and a self-employed person can pay professional tax either monthly or annually. The self-employed taxpayer shall obtain Certificate of Enrollment from the tax department of the concerned state.

Tax Rate Slab

Professional tax is a state tax that is paid as per the slab varies as per the state. Some states charge it at a fixed percentage while others charge it as a fixed amount based on Income Slab such as:

Benefits of Professional Tax Registration Online

Following are the reasons why one should never miss professional tax liability:

• Payment of professional tax is a judicial requirement and hence to avoid any penalty or prosecution, self-employed person and employer shall pay the professional tax as per the rates of its concerned state without any delay
• Professional tax is very simple to comply with. Regulations governing professional tax impose minimal restrictions and are easy to get registered with simplified annual/monthly compliances.
• The deduction can be claimed of earlier paid professional tax on salary.
• Professional tax is a state tax; therefore it authorizes state government or local tax authorities to collect professional tax deducted on professional fees, business income, and salary.

Documents required for Professional Tax Registration Certificate

List of documents required to get professional tax registration:

• if the applicant is Company: COI, AOA & MOA
• if the applicant is LLP: LLP Agreement
• PAN of the company
• Address proof for business
• Identity proof of all directors
• Address proof of directors
• Passport size photograph
• Salary register maintained by the company of its employee

Professional Tax Registration Process Online

Dealers seeking professional tax registration shall follow these steps to get professional tax registration certificate:

• 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, shall submit the hard copy to the concerned tax department
• Tax authority upon the receipt of an application shall scrutiny the application for its correctness
• Once the department scan and verify the application shall approve the same and will issue a registration certificate to the applicant
• Department can also raise a query in case it found a deficiency in the application which shall be responded on time.