Professional Tax Registration

Our experts at ICI can help you register under profession tax, prepare profession tax workings and file returns through our easy to follow virtual processes.

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Our Professional Tax Registration Packages Start From ₹5,999/- All-Inclusive

What is Professional Tax registration?

Profession Tax is levied by the state governments on the employees, employers, traders and working professionals (CA, CS, lawyers, doctors, etc). It is applicable to all forms of business entities. Employers need to register themselves as well as their employees under this Act. The burden of registration and payment of tax is on the employer. Being a state tax, the tax rate, registration process, due dates, penalty and late fees are different in different states.

Table Of Contents

Overview

Every business owner or professional service provider should obtain a PT registration for their business. The tax is calculated based on gross income slabs. Maximum amount payable under profession tax is Rs 2,500 for employer and Rs 2,500 for each individual employee. If an entity has employees working across various states, then the entity needs to obtain profession tax registrations in all the states. Profession tax is applicable irrespective of the number of employees and turnover from business or profession.

Employer needs to obtain 2 registrations:-
Profession Tax Enrolment Certificate (PTEC) – To deduct tax from the employee’s salary and pay Professional Tax Registration Certificate (PTRC) – To deduct tax for himself and pay Self-employed people need to obtain only 1 registration – PTRC

Tax Rate

Since professional tax is a state law, the tax rate is different in different states.
Few examples are:-

Tax rate slabs in Maharashtra
Monthly Gross SalaryProfession Tax per Month
Less than Rs 7,500 (Male)Rs 0
Less than Rs 10,000 (Female)Rs 0
More than Rs 7,500 but less than Rs 10,000
(Male)
Rs 175 per month
More than Rs 10,000 (Both Male and Female)Rs 2500 per annum
Tax rate slabs in Karnataka
Monthly Gross SalaryProfession Tax per Month
Up to Rs 15,000Rs 0
More than Rs 15,000Rs 200

 

Due Dates

For making payments

Different states have different due dates.

Eg: For Maharashtra, it is every enrolled person shall pay the tax within one month from the date of
enrolment in the first year, thereafter by 30th June of every year

For filing returns

Benefits

Documents Required

For Registration:
For Filing PT returns:

Process Flow

How will we help you?

Our experts at ICI will help you obtain Profession Tax registration for your entity as well as employees and file PT returns as well.

Following are the steps:

FAQs

a. Doesn’t the name Profession Tax mean the tax is levied only on Professionals?

Contrary to what the name suggests, profession tax is not just levied on professionals. It is also applicable on employment and trade.

b. How many days does it take to get the registration certificate?

It takes 10-15 days to get your PT registration certificate if the application form and documents submitted are error-free. Also, in some cases, the registration may be delayed from the end of the department.

c. What is the time limit for registering the employee under Profession Tax?

Employers should register the employee within 30 days from the date of employing him.

d. Is professional tax applicable in the state of Tamil Nadu?

Yes, one needs to register himself under the profession tax act if he conducts his business or profession in Tamil Nadu.

Along with Tamil Nadu, if your business or profession is in Maharashtra, Assam, Kerala, Punjab, Bihar, Karnataka, Andhra Pradesh, Telangana, Gujarat, Sikkim, Meghalaya, Orissa, Tripura, Madhya Pradesh and West Bengal then you are required to register under profession tax.

e. In case of an additional place of work, do you need to separately file a registration application?

In case there are more than one place of work, employers need to take a separate application for each location.

f. What are the penalties in case of non-compliance in Maharashtra?

In case of delay in registration – ₹ 5 per day for the entity

Late payment of tax – 10% of the amount of tax

Interest in case of Delay in payment – 1.25% per month

Late filing of returns – ₹ 500 to ₹ 2000 per return

For different states, there are different provisions for penalties. You can get in touch with us to know the penalties in your state.

g. I am a freelancer. Is profession tax applicable to me?

Yes, freelancers are also required to register and pay profession tax because profession tax is levied if the income exceeds the limit as specified in the state.

h. I am a director in 3 different companies. Am I required to pay profession tax in each company?

If all the 3 companies are in the same state, then you can make the payment from only one company of your choice.

i. Still have doubts?

Speak to our experts who shall solve all your doubts.
Call us at  +91 7738 066 334  or Mail us at info@indiacompanyincorporation.com

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