Professional Tax Registration
Online Professional Tax Registration in India
Professional Tax is the tax levied by different state governments of India on the salaried persons working in
government or non-government entities or practicing professions like Medicine, Law, Chartered Accountancy etc. or carrying out any other form of business. All these working professionals need to pay the professional tax.
The professional tax registration is imposed at the state level. Different states have different rates and methods of collection. The professional tax is not imposed in all the Indian states. The states in which professional tax is imposed are West Bengal, Tripura, Telangana, Tamil Nadu, Sikkim, Odisha, Meghalaya, Madhya Pradesh, Maharashtra, Kerala, Karnataka, Gujarat, Chhattisgarh, Assam, Andhra Pradesh etc.
The employers deduct the professional tax from the salary of the employees and the same is deposited with the state government. Professional tax is levied by the Municipal Corporation of a particular state and majority of the Indian states impose this tax. For the State Government, the professional tax is an important source of revenue and it helps them in implementing schemes for the welfare and development of the region.
Professional tax registration is also paid by staff of private companies (https://www.finacbooks.com/private-limitedcompany-registration-online). It is mandatory to pay professional tax. The professional tax is charged as per income slabs of the state government. The amount of professional tax paid during the year is allowed as deduction under the income tax act.
After recruiting the staff in a company, the registration of the professional tax is necessary within 30 days in case of salaried personnel and in case of professionals, it should be within 30 days from the beginning of the practice. The professional tax is deducted from the wages or salaries paid to the employees. The amount deducted for the professional tax registration varies from state to state but it is not more than 2500 rupees annually in any of the Indian States
Procedure of Professional Tax Registration
At SS Auditors we have simple and easy process in place to help you easily get professional tax registration within 5 - 10 working days. We assign a dedicated tax expert to assess your requirements, prepare application and documentation and submission of your application. Here's how it works: Application Preparation Our dedicated Tax Expert will assess your business and collect/prepare the documents required to submit for professional tax application with the State Government.
Application Filing
Signed application is submitted with the relevant department of state government by expert within 2 working days.
Registration
Concerned government department reviews application and Upon the successful submission of the application, professional tax registration is provided.
Note: You're provided with the contact details of dedicated account manager. You can get in touch with him/her in case of any queries.
What you need to know about Professional
Tax Registration?
EVERY STATE
If the employee changes his or her state and starts working in any other Indian state, than he or she needs to register in that state for professional tax again. The professional tax rate varies from state to state. Majority of the small business owners find it difficult to fulfill the strict requirements of the professional tax. Not all states impose this tax.
APPLY THE PENALTIES
You have to pay the tax on time unless you will face penalties. For example - If you are living in Maharashtra
and not paying the professional tax on time, you need to pay penalty of 10% of the amount owed to you. In the case of more delay, you need to pay 2 rupees each day.