Registration to Professional Tax

Certain states like West Bengal, Maharashtra, Kerala, Chhattisgarh, Orissa, Assam, Karnataka, Gujarat, Tamil Nadu and Meghalaya impose Professional Taxes on professionals and salaried employees. The professional tax is deducted from the wages or salaries of the employees and professionals. The tax amount varies from state to state. Registration to professional tax is mandatory and the period of registration is 30 days from the first working day.

Professional Tax Rates across Various Indian States

There are some north Indian States where Professional Taxes are not levied on employees. For some other states, the Professional Tax varies from one state to another. The Professional Taxes across various states are governed by certain acts and rules pertaining to the particular states. For example, the law of governance for Professional Tax in West Bengal is the West Bengal Tax on Professions, Trade, Callings and Employment Act, 1979. The law of governance in Maharashtra is the Maharashtra State Tax on Professions, Trades, Calling and Employment Act, 1975.

The Process of Registration to Professional Tax

GST is levied on goods by the centre as well as the state.

• Required information of the partners or proprietors such as address proofs, identity and PAN cards, and employee details need to submitted on the first working day.
• Our appointed affiliate is going to submit the filed application of the Professional Tax to the authorities responsible by the second working day.
• Verification of the given documents and informing about the requirement of any additional document is done by 5 to 7 working days.
• After submission of all the required documents, the issue of the hard copy happens within 10 to 20 days (in important cities 10 days, in other places 15 to 20 days).
• The issue of TIN (Tax Number) happens within 15 days of the application.

Return Filing and Penalties

• Like Profession Tax, return filing also varies from state to state. In West Bengal, it is only once in a year that returns need to be filed. In Maharashtra, returns are filed monthly if the liability is above Rs. 20,000, quarterly if it is under Rs. 20,000 and annually if it is under Rs.5000.
• The state of Maharashtra imposes a penalty of 10% if there is delay in the payment of professional tax. Rs. 2/day is chargeable if the obtaining of Enrollment Certificate is delayed.