Professional Tax Registration

6 Points You Must Know About Professional Tax

1. State-Wise Applicability:

Professional tax is a state subject. Some states/UT have levied, and others have not levied professional tax. The list of states or union territories where professional tax is not levied is as follows:
1. Arunachal Pradesh
2. Himachal Pradesh
3. Delhi
4. Haryana
5. Uttar Pradesh
6. Uttarakhand
7. Andaman and Nicobar Islands
8. Daman & Diu
9. Dadra and Nagar Haveli
10. Lakshadweep
11. Jammu & Kashmir
12. Punjab
13. Rajasthan
14. Chandigarh
15. Goa

2. Slab Rate:

The slab rate of the tax varies from state to state. However, it can not exceed Rs. 2500 per year in any state.

3. Timeline For Application:

The time limit of application is 30 days from the date of applicability. After the delay, there is a penalty of Rs.5 Per day of delay in Maharashtra. It varies from state to state.

4. Penalty:

There is a penalty for late or non-payment of professional tax and delay in filing returns. This penalty varies from state to state.

5. Return Filing:

The application fee for the IEC code is just Rs.500.

6. Professional Tax Certificate Types:

Followings are the two types of professional tax certificates.
1. The Professional Tax Registration Certificate (PTRC)
2. The Professional Tax Enrolment Certificate (PTEC)

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FAQ`s Regarding Professional Tax

The state governments can levy the Professional tax. Most of the states have levied this tax. The tax is levied on persons who carry on any business or profession or are an employee. But in the case of employees, the employer has to collect tax from the employees and pay it to the state government. So, in the case of any employer, they have to take two separate registrations. If any person has business in more than one state, they have to get registered in all states with a branch or office. The tax slab may vary from state to state. But it has a maximum limit of INR 2500/- per year.

The Professional Tax certificate is the proof or certification for registration under the professional tax with the State Revenue Department. Following are the two types of Professional Tax certificates :

1. The Professional Tax Registration Certificate (PTRC)
2. The Professional Tax Enrolment Certificate (PTEC)

The first one is related to the employer or owner, and the second is associated with the employees.

The professional tax payment due date depends upon the number of employees employed by the employer. If this number is more than twenty, then the 15th day of the following month is the due date. If the number is 20 or less, then payment must be paid quarterly, and the 15th of the following month from the end of the quarter is the due date.

The rate of professional tax differs from state to state. Even in some states, there is no professional tax. For the state of Bihar, the slab and rate of tax are as follows:

The amount of professional tax paid is deducted from the person’s income for income tax calculation.

• Step 1: Visit https://www.biharcommercialtax.gov.in/bweb/

• Step 2: Login to the website using Login id and password

• Step3: Click on make payment>Professional Payment>Fill the challan and > submit.

• Then the page will be directed to the bank website for payment.

• After payment, download the paid challan.