What is Professional Tax Registration?
Professional Tax is the tax levied by the various State Governments of India on salaried individuals working in government or non-government entities, or in practice of any profession, such as CAs, Lawyers, Doctors, etc. or carry out some form of business, are required to pay this professional tax.
Professional tax is imposed at the state level in India. Different states have different rates and methods of collection. It is not imposed in all states. The states which impose professional tax are Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura, and West Bengal. Professional Tax is deducted from the salary of the salaried employees by the employers and same is deposited with the State Government.
Benefits of Professional Tax Registration in India
- Helps you in keeping your company actively running and legally compliant with state laws.
Safeguard from paying penalties
- Employer and employee are secured from heavy penalties.
- The taxes deducted as per the state government are nominal and they are structured according to a salary range, hence the burden on taxpayers is nominal.
Process of Professional Tax Registration in India
The process of registration of Professional Tax Registration is so simple. Here, it is like this;
- The procedure of this Registration is different. It completely depends on the states.
- The frequency to return the file is also differed. It depends on the residence of the person, i.e. in which state he is residing.
- If any person is delay to pay the tax then the state Government charge the late penalty fee. It is also different according to the states.
The Documents that will be needed for Professional Tax Registration:
- ID & address proof of the proprietor/Director/Partner.
- Passport size photo.
- Each of the proprietor/Director/Partner.
- Partnership deed in case of Firm.
- MOA/AOA in case of company.
- Trust deed in case of trust /society.
- Copy of VAT RC.
- Bank account of the company including bank statement and cancelled cheque.
Applicability of Professional Tax Registration
Some organization, firm and entities are applicable to register for the Professional Tax like;
- Individuals Professionals.
- Directors and Partners.
- As an Employer.