Profession tax is the tax levied and collected by the state governments in India. It is an indirect 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.

What are the States eligible to impose Professional tax?

• Odisha, West Bengal, Bihar, Jharkhand & MP
• Gujarat, Maharashtra
• UP, Punjab
• Karnataka, kerala
• Andhra Pradesh, Telangana & Tamil Nadu
• Tripura, Meghalaya, Assam & Sikkim

Who is responsible to pay Professional Tax?

In case of employees, an employer is the responsible to deduct and pay professional tax to the State Government subject to monetary threshold if any provided by respective State’s legislation. Additionally, employer (corporates, partnership firms, sole proprietorship etc.) also being a person carrying on trade/profession is also required to pay professional tax on his trade/profession again subject to monetary threshold if any provided by respective State’s legislation. In such case, employer needs to register and obtain both professional tax registration certificate to be able to pay professional tax on his trade/profession and professional tax enrolment certificate to be able to deduct the tax from his employees and pay. Further, separate registration may be required for each office depending on respective State’s legislation. At present the maximum tax that can be imposed is restricted to is Rs. 2500/-

Benefits of registering PT

It is a Judicial Requirements Every Employers covered under the jurisdiction of “State Government” as Designated authority shall pay professional tax in the treasury by Challan through the bank. Other employers shall pay at the place of payment declared by the Designated Authorities concerned.
Avoid Paying Penalties for Non-Registration Failure to obtain professional tax registration meets huge penalties which increases with the time.

Easy To Comply PT registration is now made easy to comply. The registration process can be done quickly with us and other proceedings also.

Deductions

Deductions can be claimed in salary based on professional tax paid. 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 department. He/she has to furnish a return to the tax department in the prescribed form within the specified time limit.

Who are exempted under PT Act?

Professional tax levy is subject to exemption provided by respective State to certain categories. For example:

• Parents or guardian of any person who is suffering from mental retardation.
• Blind persons are exempted among others from levy of Karnataka Professional tax.

Penalties for Non-Compliance

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 you filed after due date in 1 month. After 1 month, a penalty of Rs.2000 will be imposed

Registration- We help you to make this process simple & easy.

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.

Documents required for online PT registration:

• Certificate of incorporation/MOA/AOA & LLP Agreement
• PAN of Company/LLP attested by co. director
• Place of business proof/ NOC from landlord of the premises.
• Bank statement/ Cancelled Cheque
• Passport size photo, address & identity proof from all the directors.
• Board resolution or in case of LLP, written consent from all the partners.
• Shop & establishment certificate.
• Salary register and employee attendance record.