PROFESSION TAX (PT) REGISTRATION

 

Basics

 

It is a tax levied on professions and trades in India. It is a state-level tax and has to be paid compulsorily by eligible member of staff employed in companies. The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government authority.

 

Professional tax is usually a calculated as per monthly Salary Slab of the professional. It is deducted from his income on monthly basis. Some of the state governments that have levied professional tax are Andhra Pradesh, Maharashtra, Karnataka, West Bengal, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. In case of salaried employees and wage earners, Employer is liable to deduct professional tax and required to be paid to State Government. In case of other class of Individuals, this tax is liable to be paid by the person on his own.

 

We will assess your business and prepare the documentation for professional tax application with the concerned State Government. The signed professional tax application will be submitted to the relevant department in the same city or town. On scrutiny of the application, Government will allot professional tax registration number.

 

Usually it takes around 2 - 3 working days for Profession Tax Registration subject to valid compliance from applicant side.

 

Advantages

 

  1. Statutory Requirement: Employers in certain states shall obtain professional tax registration and deduct and pay service tax on behalf of employees.

 

  1. Avoid Penalty: Failure to obtain professional tax registration or remit professional tax could result in fines and penalties that accrue over time. Hence Penalty can be avoided by opting for Profession Tax Registration.

 

  1. Easy Compliance: Compliance with professional tax regulation is easy. Professional tax registration can be obtained easily and compliance maintained easily.