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Professional Tax Registration

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Professional Tax Registration Certificate and Compliance

Professional tax is a direct tax levied on persons earning an income by either practicing a profession, employment, calling, or trade. Unlike income tax imposed by the Central Government, professional tax is levied by the government of a state or union territory in India.

In the case of salaried and wage earners, the professional tax is liable to be deducted by the Employer from the salary/wages, and the same is to be deposited to the state government.

Professional Tax Applicability

This tax is levied on all kinds of professions, trades, and employment. Profession tax is applicable to the following classes of persons:

  • An Individual
  • A Hindu Undivided Family (HUF)
  • A Company/Firm/Co-operative Society/Association of persons or a body of individuals, whether incorporated or not




    • Exemptions for Payment of Professional Tax

  • Parents of children with permanent disability or mental disability
  • Badli workers in the textile industry
  • Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.



    • Professional Tax Registration Certificate and Compliance:

  • If the assessee has more than one place of work, then the application should be made separately to each authority with respect to the place of work under the jurisdiction of that authority.
  • Application for professional tax certificate should be made to the assessed state tax department within 30 days of employing staff for his business.



    • Procedure for Obtaining Professional Tax Registration Certificate

    Professionals/Employers required to pay professional taxes should follow the procedures outlined below:

    Step 1: The applicant must file the application form and the requisite documents.
    Step 2: The applicant needs to submit the Application with the necessary documents to the concerned state government.
    Step 3: On receipt of an application, the tax authority shall scrutinize the application to ensure that all the information is correct.
    Step 4: The authority will issue the registration certificate after successfully scrutinizing all the documents.

    Documents Required

    :

    1. Certificate of Incorporation / LLP Agreement
    2. MOA and AOA
    3. PAN Card of Company/LLP/Proprietor/Owner/Director
    4. NOC from the landlord, where the business is situated
    5. Passport size photos of Proprietor/Owner/Director
    6. Address and identity proof of Proprietor/Owner/Director
    7. Details of employees and salaries paid
    8. Additional registrations and licenses
        9. Professional Tax Registration

        Advantages

        It is simple to comply with the Professional Tax Compliance, which results in a smooth registration process with minimum restrictions.

        Professional Tax Compliance is simple, which can enable a smooth and hassle-free Registration Process.

        Professional Tax Registration

        Disadvantages

        The Professional Tax acts as a revenue source for the state governments that helps the government to implement schemes for the various welfare and development of the region.

        The Employer or the self-employed person can claim a deduction on the previously paid professional tax.

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