Professional Tax Registration
Get help from our Expert Tax Consultants/CAs for Professional tax Registration.
- Very Quick & Easy
- Online Process
- Industry Experts Advice at every process
Get in touch
What is Professional Tax (P Tax) ?
It is a direct tax. Profession tax is the tax levied and collected by the state governments in India. A person earning an income from salary or anyone practising a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. This is a tax that is to be paid by every single earning individual.
Who is required to get Professional Tax Registration?
- Companies
- Firms
- LLPs
- Corporation
- Societies
- HUF
- Associations
- Clubs
- Legal practitioners such as solicitors
- Contractors
- Architects
- Engineers
- Insurance agents
- Chartered Accountants
- CS
- Surveyors
- Tax consultants
- Management consultants
- Medical representatives such as doctors, medical consultants, and dentists
Exemption From Professional Tax
- Individuals who run educational institutions that teach classes up to twelfth standard.
- Individuals in the Central Para Military Force (CPMF).
- An individual who has one child and has undergone a sterilization operation. However, the relevant documents must be submitted.
- Any ex-serviceman who comes under SI No.1 (Schedule)
- Any handicapped individual who has at least a 40% disability. However, the relevant certificate must be submitted.
- Individuals who have a permit for a single three-wheeler or a single taxi to carry goods.
- Deaf, dumb, and blind individuals who are earning a salary.
- Civilian non-combatant and combatant members who are part of the Armed Forces. However, the Army Act must govern the Armed Forces.
- Foreign technicians who have been employed by the state.
- All philanthropic and charitable hospitals that are present in places that come under below taluk level.
States where Professional Tax is Applicable
Not all states impose a professional tax. The states which impose professional tax are Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Sikkim, Tamil Nadu, Telangana, Tripura & West Bengal. Different states have different rates and methods of collection. Professional tax is imposed every month. However, the amount of professional tax cannot be more than Rs. 2,500.
Interest/Penalty for Non-Compliance
A penalty may be imposed by the state government: –
- if you delay in obtaining the Registration certificate
- for a delay in making the payment
- for a delay in filing a return
The amount of interest or penalty for defaults varies from state to state. All states shall charge a penalty for non-registration for professional tax, if applicable. Further, penalties may be charged for non-deposit of tax timely or failure to file returns timely.
Documents Required
Incorporation documents- Incorporation Certificate of Company/LLP, Partnership deed/ LLP agreement, Trust Deed
MOA/AOA of company, Byelaws of Trust
Address Proof of entity- Lease Deed/Rent Deed (if rented), Property Tax Receipt/Registry copy (if owned)
Utility bill of office premises- Water bill/Electricity bill/Telephone bill
PAN card of the entity duly attested
Shop & Establishment Act Certificate, if available
3 passport size photograph of proprietor/partners/directors/karta
ID Proof of proprietor/partners/directors/trustees/karta- PAN & Aadhar Card
Address proof of proprietor/partners/directores/trustees/karta- Passport/Aadhar/Driving license/voter Id
Board Resolution/ consent letter authorizing the director or partner
Cancelled cross cheque and bank statement copy
Salary Register of employees
Get in touch with us
Our team of experts will get in touch with you.