Professional Tax Registration

Introduction

Professional tax is a kind of direct tax that is levied on a person who is earning his income either through employment, trading or profession. Professional tax is a matter of state list of Schedule VII of the Constitution of India. Therefore, the power to levy professional tax is granted to state governments. The majority of states impose Professional Tax, It is at the discretion of the state government to impose Professional Tax and rates of this tax also varies from state to state. While some states may charge it as percentage value others may charge it as fixed amount on a given slab.

Every self employed person who is either in employment or carry on any professional or trade falls under the ambit of Professional tax. Commercial tax department of a state or union territory is liable to collect the professional tax at predetermined rates which varies for each state and union territory. The tax is calculated on the annual taxable income of the individual.

However, in the case of salaried persons, the employer is liable to deduct the professional tax from the salary of the employees and deposit it to the state government. Therefore, the employer is liable to register itself under the concerned authority and obtain a certificate of registration thereof in order to deduct and deposit professional tax.

 WHY CHOOSE CORPIQ SERVICES?

• Simplified Registration: We transform the Professional tax registration process into a straightforward and hassle-free journey.

• Expert Navigation: Our team, with its deep-rooted understanding of international trade guidelines, stands ready to assist.

• Transparent Operations: No hidden surprises or costs. Just straightforward, efficient service.

• Dedicated Support: Our commitment doesn't end with your Professional Tax Registratioan. We're here for your post-registration queries too.

 

APPLICABILITY OF PROFESSIONAL TAX

Professional tax is applicable on the following class of persons-

• An Individual
• A Hindu Undivided Family (HUF)
• Company
• Cooperative society
• Firm or association of persons body of Individuals, whether incorporated or not

 

EXEMPTIONS FROM PAYMENT OF PROFESSIONAL TAX

The following individuals are exempted to pay professional tax;-

• Individuals who are parents of children with a permanent disability or mental disability
• Members of forces as defined under Army Act, 1950, The Air Force Act, 1950 and Navy Act, 1957 including members of auxiliary forces or reservists, serving the state.
• An Individual who is suffering from permanent physical disability
• Badli workers at textile industries
• Individuals above the age of 65 years

 

FEATURES OF PROFESSIONAL TAX REGISTRATION

• It is a direct tax that is levied on the persons who earns their living through employment, profession or trade.
• It is a matter of state list, which means it is levied at the discretion of state governments and its rates also varies from state to state.
• It is deducted from gross salary along with TDS, EPF and an other deduction.
• Professional Tax act as a revenue source for the state governments and helps them to implement social welfare schemes.
• Employers or self-employed persons can claim deduction on previously paid professional tax
• Professional tax compliance is simple, which can provide a smooth registration process.

 

DOCUMENTS REQUIRED FOR PROFESSIONAL TAX REGISTRATION

• Photograph of Proprietor, Authorized Person, Partner, Director
• ID proofs of Proprietor, Authorized Person, Partner, Director such as Self attested copy of PAN card, Aadhaar card, driving license etc.
• Constitutions of Business Registration of Incorporation, Deed of Partnership firm, Registration Certificate, etc. as applicable
• Proof of Principal Place of Business

 

PROCEDURE FOR REGISTRATION OF PROFESSIONAL TAX

The procedure for professional tax registration varies from state to state. However, here are given the common steps to register for Professional Tax-

• Go to the state's official website for professional tax registration.
• Select New enrollment/request relating to professional tax registration
• It will take you to a new page, fill all the required details
• Make the attachment of requisite documents
• After uploading the documents submit the application and the computer would generate a registration certificate with a unique number. The username and password would be sent to the registered mobile number.