What is Professional Tax Registration?
Professional Tax registration is a form of taxation which is applicable to all salaried professionals, which include employees and chartered accountants, doctors as well as lawyers. These are the states in India where this tax is imposed, West Bengal, Assam, Karnataka, Andhra Pradesh, Tamil Nadu, Maharashtra, Kerala, Orissa, Chhattisgarh, Meghalaya as well as Tripura. Professional Tax registration becomes mandatory on a business, once thirty days has passed since the employment of their staff in their business. When it comes to professionals, their business becomes applicable for Professional Tax registration within thirty days of starting their practice. This tax is deducted from the wages or the salaries that they pay out. The amount that is paid, differs from state to state but there is usually a cap of about Rs.2, 500 per annum.
Things that you should know regarding Professional Tax Registration
State wise taxation
If you have employees in different states of the country, then you must do for the Professional Tax registration in each state where you employees are based in. The rate also varies from state to state which you have to pay. This process however makes it quite difficult for small business to comply with such a regulation. There are many north Indian states however, where this Professional Tax is not levied at all.
The filing of the Professional Tax returns
It depends upon which state you are operating in, for the frequency of the filing of the professional tax returns. In Maharashtra for example, the filing of the returns can be done on an annual basis in case the liability of the company is less than Rs.5,000 or it can be done on a quarterly basis if it is under Rs.20,000 and can be filed on a monthly basis in case of the liability is above Rs.20,000. In West Bengal, however the returns have to be filed only once in a year. In fact, many of the other states are also moving towards this approach.
Application Penalties of Professional Tax Registration
In case there is a delayed payment of taxation, there is a penalty of around 10% of the amount owed that can be levied on the business in Maharashtra. If there is a delay in getting the enrollment certificate, there is a penalty of Rs.2 per day.
The slab rates and professional tax rates around India
Professional Tax rate in Maharashtra
There is a Professional Tax that in Maharashtra that is levied on all professionals who are done professional tax registration, on all trades, calling and employment act 1975 and is governed by the Maharashtra State Tax. This Professional Tax must be paid by all of the professionals and employees who have a monthly salary of Rs.7500. Others, whose salaries are between the slab of Rs.7, 500 and Rs.10000 have to be around Rs.175 on a monthly basis and other who have higher salaries than this, must pay Rs.200 every month and Rs.300 in February. This Professional Tax can also be paid online by the tax payers.
Professional Tax rate in Tamil Nadu
Town panchayats, Municipalities and the Municipal Corporation rules 1988 governs the Professional Tax in Tamil Nadu. All of the professionals and the employees who have a monthly salary of Rs.3500 have to pay the Professional Tax which is minimum of Rs.16 every month and it goes up to Rs.182 per month for those who are earning more than Rs.12501 on a monthly basis.
Professional Tax rate in Karnataka
In Karnataka, the Professional Tax is governed by the Karnataka tax which is on the professionals, trade, callings and the employment act of 1976. There are no slab rates in Karnataka, which makes it quite simple. Those who are earning more than Rs.15000 per month have to pay the Professional Tax of Rs.200 every month. Those who are earning less than Rs15000 in a month do not have to pay anything at all.
Professional Tax rate in West Bengal
In West Bengal, the Professional Tax is looked after by the West Bengal Tax on Professionals, Trade, Callings and Employment Act of 1979. For those who are earning more than Rs.8500 in salary per month have to pay Rs.90 each month. The highest Professional Tax rate is Rs.200 per month, which has to be paid by those who are earning Rs.40000 per month.
Professional Tax rate in Andhra Pradesh
The Professional Tax rate that is levied on people is governed by the Andhra Pradesh Tax on Professionals. Trade, Callings and Employment Act, 1987. Those who are earning Rs.15000 and more must have Rs.150 every month as Professional Tax and for those who are earning Rs.20000 or more must pay Rs.200 per month.
Professional Tax rate in Gujarat
In the state of Gujarat, this tax is looked after the Gujarat Panchayats, the municipalities, Municipal corporations and state tax on professionals, traders, callings and employment act of 1976. For those who are earning Rs6000 and more must pay Rs.80 per month while those who are earning Rs.9000 or more have to pay Rs.150 on a monthly basis. For those who are earning Rs.12000 and more have to pay Rs.200 every month as Professional Tax.
The process of the Professional Tax Registration
A working day
You would need to submit the identity and address proof as well as the PAN cards of all the proprietors, directors or partners in the business. The details of all the employees working in the business have to be submitted as well for Professional Tax Registration.
Two working days
The filing of the Professional Tax registration application will be done by our affiliates on your behalf and submitted to the respective authorities. If all documents are complete and in order, then it should not take more than two working days.
Seven Working days
A basic acknowledgement will be received by you from us within five to seven working days about professional tax registration. In case there are more documents needed for professional tax registration, then the process will be completed as soon as the additional documents are submitted. In most of the major cities, the hard copy is issued within ten days and may take about fifteen to twenty days in other cities.
Government Registration Types
Importer Exporter Code
- Who is it for: Importers and Exporters
- When is it needed: For any form of imports and exports of a business
- Any returns that need to be filed: No
- The issuing authority: The Directorate General of the Foreign Trade department
Shops & Establishments Act
- Who is it for: All types of businesses
- When is it needed: In 30 days of starting your operations
- Any returns that need to be filed: No
- The issuing authority: The Municipal Corporation
Professional Tax Registration
- Who is applicable for professional tax registration: All of the employers
- When professional tax needed is needed: In 30 days of starting your operations
- Any returns that need to be filed: Yes
- The issuing authority for professional tax registration: The State Government