Registrations

Professional Tax Registration

Professional Tax Registration (under 20 employees) at an all-inclusive price, including Government Fees*

Complete By* : 12 Jun, 2023

Pricing Summary

Traditional CA/CS Price : ₹ 15,000 /-

Other Online Price : ₹ 13,000 /-

Our Base Price : ₹10,593 /-

Govt. fees & taxes : ₹1,907 /-

You Pay: 12,500/- all inclusive

Government Fee included in above

You Save : ₹500/- to- 2,500 /-

What do you get?

15 Mins free Consultation with an EXPERT

Filling and filing of Application

Submission of any clarifications/ resubmissions required

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we only ask for required documents

What is Professional Tax Registration ?

 

Profession tax is the tax levied and collected by the state governments in India and is a type of direct tax. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this Professional Tax. Different states have different rates and methods of collection. In India, profession tax is imposed every month. However, not all states impose this tax. 


 

Documents Required

Incorporation Certificate

Id proof i.e. (Aadhar Card/Driving license/Passport/Voter Card)

Utility Bills (Electricity/ Telephone)

Registered Office documents

Other documents as per entity type

* (All documents in Pdf scanned. Image file in jpeg format)

* (All documents to be Self Attested and signed on each page)

Registrations

Importer Exporter Code Registration

Profession tax is the tax levied and collected by the state governments in India and is a type of direct tax

Steps for Registration

Collect information and documents

Creation of Login credentials on the online portal

Preparation of online application

Filing application for registration using credentials

Sign the Form

Reply to any queries/clarifications

Professional Tax Registration Certificate

Professional Tax

Exemptions

Certain individuals are exempted from paying Professional tax under the Professional tax rules

Physical disability

Parents/guardians of children with permanent disability or mental disability. An individual suffering from a permanent physical disability (including blindness).

Armed forces

Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.

Women

Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.

Age criteria

Individuals, above 65 years of age.

What is Professional tax registration

Profession Tax is the tax levied and collected by the state governments in India and is a type of direct tax. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this Professional Tax. Different states have different rates and methods of collection. In India, profession tax is imposed every month. However, not all states impose this tax. Business owners, working individuals, merchants and people carrying out various occupations come under the purview of this tax.

 

Contd…


 

Contd….

 

Profession tax is levied and collected by the Commercial Taxes Department of State Governments, in some states by particular Municipal Corporations and majority of the Indian states are collecting this tax. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer's salary, there are predetermined slabs. It is also payable by members of staff employed in private companies. It is deducted by the employer from their employee every month and remitted to state exchequer and in some states sent to the Municipal Corporation. It is mandatory to pay Professional Tax. The taxpayer is eligible for income tax deduction for this payment

 

 

Article 276 in The Constitution Of India 1949

 

276. Taxes on professions, trades, callings and employments

(1) Notwithstanding anything in Article 246, no law of the Legislature of a State relating to taxes for the benefit of the State or of a municipality, district board, local board or other local authority therein in respect of professions, trades, callings or employments shall be invalid on the ground that it relates to a tax on income

 

(2) The total amount payable in respect of any one person to the State or to any one municipality, district board, local board or other local authority in the State byway of taxes on professions, trades, callings and employments shall not exceed two hundred and fifty rupees per annum: Provided that if in the financial year immediately preceding the commencement of this Constitution there was in force in the case of any State or any such municipality, board or authority a tax on professions, trades, callings or employments the rate, or the maximum rate, of which exceed two hundred and fifty rupees per annum, such tax may continue to be levied until provisions to the contrary is made by Parliament by law, and any law so made by Parliament may be made either generally or in relation to any specified States, municipalities, boards or authorities

 

(3) The power of the Legislature of a State to make laws as aforesaid with respect to taxes on professions, trades, callings and employments shall not be construed as limiting in any way the power of Parliament to make laws with respect to taxes on income accruing from or arising out of professions, trades, callings and employments

 

 

 

Registration

Employers have to apply for the Registration Certificate of their respective State Tax Department within 30 days of employing the staff. In case the place of work spans multiple states or place, application for the Registration Certificate has to be done separately to each authority with respect to the place of work coming under the jurisdiction of that authority.

 

Contravention

Delays in obtaining Registration Certificate: a penalty of Rs. 5/- per day. 

In case of non/late payment of profession tax: penalty will be 10% of the amount of tax. 

In case of late filing of returns: a penalty of Rs. 1000 per return will be imposed if filed after due date in 1 month. After 1 month, a penalty of Rs. 2000 will be imposed.

 

States that have levied Professional Tax:

Andhra Pradesh

Karnataka

Maharashtra

Tamil Nadu

Assam

Kerala

Meghalaya

Tripura

Bihar

Jharkhand

Madhya Pradesh

West Bengal

Manipur

Mizoram

Odisha

Puducherry

Sikkim

Telangana

Nagaland*

Chhattisgarh

Gujarat

 

States that have not levied Professional Tax:

 

Arunachal Pradesh

Himachal Pradesh

Delhi

Haryana

Uttar Pradesh

Uttarakhand

Andaman and Nicobar Islands

Daman & Diu

Dadra and Nagar Haveli

Lakshadweep

Jammu & Kashmir

Punjab

Rajasthan

Chandigarh

Goa

 

Benefits of Professional Tax Registration

Makes your Entity compliant

Helps avoid penalties in case of non-compliance

Nominal tax rate and hence low burden on taxpayers 

 

 

FAQs

Certificate of Enrolment (EC): Any person liable to pay Profession Tax is required to obtain a Certificate of Enrolment (EC). 

 

Time limit to apply for Enrollment / Registration : A person / employer shall apply within 30 days of becoming liable to pay tax.

 

Demat Certificate of Enrolment: If the applicant has paid tax through GRIPS (online tax payment portal of the Government of West Bengal) and possesses a valid PAN (under the Income Tax Act, 1961), he is eligible to obtain Demat Certificate of Enrolment. 

 

Why does Professional Tax differ from state to state: The Professional Tax varies greatly from state to state since Professional Tax is levied by States, who have the power to limit it as they think fit. The only thing which stays common is the Professional Tax amount cannot exceed Rs.2500.

 

Is Professional Tax applicable to Union Territories: Currently Professional Tax is levied by 20 states and Union Territories taken together.

 

Refund of Professional Tax : Professional Tax is paid at the end of month presuming that you have carried out the profession in that month. Therefore once Professional Tax is paid, there can be no refund. But deduction for profession tax can be claimed while filing your salary returns.

 

Can the Professional Tax liability amount be paid in lump sum: In certain states there is concept of composition scheme. For e.g. in case of Maharashtra, the government announced composition scheme under which any person liable to make payment to government at rate of Rs. 2500 may make a lump sum payment in advance of Rs. 10,000 and his liability to pay for 5 years will be discharged.

 

Cancellation of Professional Tax Registration :The user can apply online for cancellation through the Professional Tax Portal under Registration> Cancellations.

Documents required for registration

 

Incorporation Certificate

Id proof i.e. (Aadhar Card/Driving license/Passport/Voter Card)

Utility Bills (Electricity/ Telephone)

Registered Office documents

Other documents as per entity type