WHAT IS PROFESSIONAL TAX?
Professional tax is a tax which is levied on all kinds of professions, traders, and employment.
It is a tax levied by the state government and it varies from state to state.
It is of two types:
Professional tax enrolment certificate: this is paid by the business entity
Professional tax registration certificate: government or non-government employer deducts the tax from the employees’ wages and deposit the same to the government.
What are the benefits of Professional tax?
Less restriction: easy to comply with and the compliances are less to deal with.
Easy registered: easy to get registered with annual or monthly compliances.
Implementing welfare programs: it is source of revenue for the state government which helps in implementing schemes for various welfare program
Can claim deduction: the deduction can be claimed of the earlier paid professional tax paid on salary/professional/ employment.
Documents required for professional tax registration:
Acknowledgement of the online form, along with the print out of the digital form already submitted.
In case, the applicant is Company- Certificate of incorporation AOA & MOA, and PAN of the company, all should be attested by the director of the company.
Identity proof and address proof of all directors along with the passport size photo.
A bank statement and canceled cheque.
Proof of Registered Office. In the case of rented property-NOC from the owner.
In case of a company-Board Resolution and In case of Partnership- the Declaration of consent by the concerned Partner is required.
Salary and attendance register.
A maximum of professional tax is Rs. 2500 annually.
STEPS FOR PROFESSIONAL TAX REGISTRATION
COMPLIANCE TO BE FOLLOWED
There are several compliances the private company needs to adhere to under the Companies Act,2013. It is imperative that you take note of this or else risk facing unnecessary penalties and fees.
There are several compliances the private company needs to adhere to under the Companies Act,2013. It is imperative that you take note of this or else risk facing unnecessary penalties and fees.
What Penalties are imposed in Case of Violation of Professional Tax Regulation?
The Penalty for violation is imposed on the individuals who default in submitting their professional tax. The states that are collecting Professional tax, imposes penalty for not registering professional tax once it has become applicable. Though, the amount of penalty varies from state to state.
Fails To Get Registration
The entity will be liable to a penalty for the period during which he remains unregistered.
Fails To Deposit To The Government/ Late Deposition
The entity will be liable to a penalty for the period during which the entity fails to pay the taxes.
Non-Deposition Of Amount
The officials have power to recover such amount along with applicable penalty and interest from the assets of such defaulter. Moreover, they can attach his bank account also. In serious cases, prosecution case also can be filed.
Further, states also impose penalties for failing to initiate any payment within the due date and also failing to file the return within the specified due date.
In case of non/late payment of professional tax, the penalty will be 10% of the amount of tax. The entity is liable to pay Rs 1000 in case of late filing of returns. Also, if the delay is for more than a month, a penalty of Rs 2000 will be imposed.
Few tax slabs examples:
West Bengal on salary/ Wage earners are as follows:
| Upto to Rs. 10000 | Nil |
| Rs.10001 to Rs. 15000 | Rs. 100 per month |
| Rs. 15001 to Rs. 25000 | Rs. 130 per month |
| Rs. 25000 to Rs. 40000 | Rs. 150 per month |
| Rs. 40000 & above | Rs. 200 per month |
