Register for Professional Tax Now to Avoid Litigation!
ICI can assist you with registering your company for professional tax.
Our experts will take care of the entire operation for you.
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.
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.
Since professional tax is a state law, the tax rate is different in different states.
Few examples are:-
Our experts at ICI will help you obtain Profession Tax registration for your entity as well as employees and file PT returns as well.
Contrary to what the name suggests, profession tax is not just levied on professionals. It is also applicable on employment and trade.
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.
Employers should register the employee within 30 days from the date of employing him.
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.
In case there are more than one place of work, employers need to take a separate application for each location.
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.
Yes, freelancers are also required to register and pay professional tax because professional tax is levied if the income exceeds the limit as specified in the state.
If all the 3 companies are in the same state, then you can make the payment from only one company of your choice.