Online Professional Tax Registration
July 25, 2019
Professional tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers, and doctors.
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We do a thorough check of the files you send for professional tax registration
We will appoint an affiliate to process your application
RECEIPT OF TAX NUMBER
The TIN will be issued within 15 days of the professional tax registration
How to apply for Professional Tax Online?
Professional Tax Applicability
Professional tax is levied on all types of trades and professions in India. It has to be paid compulsorily by every staff member who is employed in any private firm operating in India. Professional tax registration is the onus of every business owner, who must take up responsibility for deduction of professional tax and payment for the same
PROFESSIONAL TAX VARIATION WITH EACH STATE
Professional tax payment will always have distinct rates that keep varying from state to state. The state governments which are levying state tax are West Bengal, Maharashtra, Karnataka, Kerala, Assam, Madhya Pradesh, Orissa, Tripura, Meghalaya, and Gujarat.
PROFESSIONAL TAX FOR SELF-EMPLOYED
Any professional who gets a regular income on a monthly basis will have to pay the professional tax. By the term professional, we imply people working in specialized fields like accountancy, media, medicine, information technology, media, etc.
Professionals offering freelance services also need to pay professional tax using a special type of form. They can fill the form and get a registration number first. Then, using that number, they can pay their taxes in the corresponding banks.
In certain states in India, specifically , Maharashtra Profession Tax Act amended from 1.4.2018, Now a Limited Liability Partnership and each partner of LLP shall be liable to pay PT of Rs. 2,500/- per annum.
EXEMPTION FROM PROFESSIONAL TAX PAYMENT
The following individuals are exempted to pay professional tax:
Parents of children with a permanent disability or mental disability.
Members of the armed forces, including members of auxiliary forces or reservists, serving in the state.
Individuals, over 65 years of age.
An individual who is physically challenged (also visually challenged).
Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
Parents or guardians of individuals who are mentally challenged
– Badli workers in the textile industry.
Why pay Professional Taxes? Benefits
Here are the reasons why one should never miss a professional tax payment
IT IS A JUDICIAL REQUIREMENT
As per the rules and regulations of India, every employee is bound to make the professional tax payment without fail. Employers in many states of India are strictly bound by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and pay the service taxes of all the employees who work under them.
TO AVOID PAYING PENALTIES
Failure to professional tax registration results in huge penalties that keep on increasing over time.
EASY TO COMPLY
When something is easy to comply, it won’t be difficult to follow. The professional tax regulations are so easy to follow that and not difficult to comply with. The registration procedures can be done quickly and the further proceedings are also much easier.
Deductions can be claimed in the salary on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer made the payments.
THE STATE GOVERNMENT TAX
The local authorities and the state government have the right to collect all the professional taxes based on employment, profession trades and much more. The collected amount of professional tax per annum should not go beyond Rs. 2500 per an annum.
Professional Tax Registration Process in India
The professional tax registration procedure is very easy. Here are three important points that one needs to know and understand in detail.
VARIES ACCORDING TO STATE
In case you are a business owner and have employees under different states working for you, then you will have to get a professional tax registration for all the states. The tax slab rates can vary from one state to another. This can make it a cumbersome task for small-scale industries. Many states in North India do not have professional taxes.
THE FREQUENCY OF FILING RETURNS
The frequency with which one needs to file returns will depend on the state the person resides in. Hence, before filing for a return it is important to know the rules of the state.
THE PENALTIES THAT AWAIT
The Maharashtra government, for instance, can levy a penalty of about 10 percent the amount which was delayed. Hence, the more one avoids paying the registration, the more they will have to worry about the penalties.
Documents required for Online Professional Tax Registration
Here is a list of documents required to register for professional tax:
Certificate of Incorporation, including MOA & AOA / LLP Agreement.
PAN card of Company/LLP which is attested by the company director
Place of business proof along with a NOC from the owner of the premises
Bank account of the company including bank statement and cancelled cheque.
Passport size photographs, address and identity proof from all the directors
Board resolution or in other words, the statement of consent by the partners.
Shop and establishment certificate
Salary register and attendance register
Steps involved in Online Professional Tax Registration
ONE WORKING DAY
Within one working day, you will have to provide your PAN card, address proofs and identity proofs of all the directors/partners/proprietors of the company. You also need to furnish the details of all employees working under you.
TWO WORKING DAYS
The application form for professional tax will be then filled up by the employees and then submitted to the concerned authorities by our expert affiliates. If the documents are all provided in order, then the process will not take more than two working days.
SEVEN WORKING DAYS
Within five to seven working days, the basic acknowledgment will be provided by us. In case the documents are not in proper order, the inspector will ask for the missing documents. As soon as you provide the missing ones, the process will be completed. The registration hard copy will be issued with 10 days in all the major cities. In other places, it might take up to 15 to 20 working days.