Illuminating About. Mandatory Tax Payments.
@ Rs. 12,899*
*Subject To Change On Market Conditions
Registering and filing your Professional Taxes as employees was never simpler. Sign up with us and receive complete assistance with our stellar range of services.
What Is Professional Tax?
Professional Tax (PT) is a State Tax where an amount is levied on a person employed by the respective states of the employee. The professional tax comes under the purview of the State Government in India. Each State and Union Territory in India has their own ceilings and tax rates to levy on the employed people in their jurisdiction. While states like Delhi and Haryana don’t have any Professional tax, states like Maharashtra and Karnataka levy the same on their employed citizens. Under the provision of the respective Acts, “Professional Tax shall be paid by all the persons involved in any profession or calling, or if they are engaged in a trade or hold any appointment, public or private as specified in the Schedule of the Act.”
The parties to payment of Professional Tax are mentioned as follows
- Employees with Salary/Wage as per the threshold prescribed by each State
- Employers (Business Organizations)
- Sole Proprietor
- Partnership Firm (Registered / Unregistered)
- Limited Company (Private / Public)
- Limited Liability Partnership
- Corporations and Corporate Bodies
- Hindu Undivided Family (HUF)
- Trust / Society / Club / Association
Professional Tax is payable by individuals and business entities (referred to as a “Person”) employed or employing in any profession, trade, callings or businesses in the states mentioned below:
States That Levy Professional Tax:
- Andhra Pradesh
- Karnataka
- Kerala
- Maharashtra
- Gujarat
- Tamil Nadu
- Assam
- Puducherry
- Meghalaya
- Chhattisgarh
- Tripura
- Bihar
- Puducherry
- Jharkhand
- Madhya Pradesh
- West Bengal
- Manipur
- Mizoram
- Odisha
- Nagaland
- Sikkim
Employee Professional Tax Registration: Certificate of Registration (RC)
Professional Tax payable by the employee is to be deducted by their employer from the net salary or wages prior to payment. Such an employer shall be held liable to pay the taxed amount to the Government on behalf of all their employees.
Every employer that is liable to pay Professional Tax on behalf of such employees has to obtain a Certificate of Registration (RC) within 30 days of commencement of business.
Professional Tax Employee Registration is mandatory for all such employers that employ individuals with salary or wages of the prescribed threshold given in each State’s Act. The Certificate of Enrollment (EC) is also mandatory to obtain the Certificate of Registration (RC).
Procedure
Following are the requirements of Professional Tax registration:
Documents Required For Employee Professional Tax Registration:
Document
- Enrolment Certificate
All Business Registration Documentation
- Incorporation or Registration Certificate
- Company PAN Card
- MOA & AOA of Company or LLP Agreement or Partnership Agreement etc
- Canceled cheque of the current account of the said business
- Address proof of business premises – Electricity bill / Tax Receipt or valid rental agreement in the name of the
- company & Electricity bill copy in the name of the owner
- Last Balance Sheet of the Previous FY, if any
- Letter of Authority
Information Of Directors or Promoters
- PAN card of all the Directors or Promoters
- Address proof of all the Directors or Promoters
- The list of all Directors or Promoters
Details Of The Employee
- List of the employees with their date of appointment
- Employee salary slips
