Frequently Asked Questions
What is Profession Tax?
Professional Tax is a State level Tax on Professions or Employment. Profession tax is applicable both on Individuals and organizations (Proprietorship, Partnership, Companies, Hindu undivided Family, Societies etc.)
What are different types of PT registrations?
1) Registration of Individual, Professionals and Companies
Every person doing any business or profession is liable to obtain a Certificate of Enrollment from the Profession Tax Authority. Once this certificate is obtained a person is liable to pay profession Tax.
2) Registration of PT on behalf of employees
An employer organization is required to get registered and take profession tax number (PTRC). PTRC gives a power to the company to deduct Professional tax from the Employee’s salary and paid it same to the Government.
Rate of Profession Tax and Exemptions
As Profession Tax are a state Govt. tax rate and other provisions changes state to state. For example in Maharashtra PT rate are fixed to 2500 per entity except in case of employees drawing salaries less than 10000 per month where it Rs.2000 per year.
To understand the Profession Tax provision of your state contacts us at 9372644735.
Exemptions to Profession Tax: – Certain class of entity and individual are exempt from payment of profession tax. For example in Maharashtra for Sr. Citizen Profession Tax is exempt. Women employees Drawing salary upto Rs 10000/- pm also exempt.
Maximum Profession tax limit:- As per amendment in 1988 PT maximum limit for one entity is fixed to 2500 , However many states are perusing Parliament to increase it to Rs 7500.
Keep watching here to get update
No Double profession tax:- This is a frequently asked question that if a person is working as salaried person and also running a proprietorship.
Who need to take PTEC registration?
Following person need to take PTEC registration immediately without delaying:-
- Proprietor of a single owner firm
- All Partners of Partnership Firm
- All Directors of a Company
Who need to take PTRC Registration?
Every employer who has employees drawing monthly salary Rs 10000/- and above need to register for PTRC and deduct Rs 200 from employees monthly salary and pay to PT dept along with PTRC return
Does he need to register at both the places and pay taxes twice?
The answer in No, Provided his employer and his business firm both are located in same state.
Similarly if a person is director in more than one company and all those companies are located in a state he needs to pay profession tax once.
I am a doctor should I also required to register for PT?
Yes if you are a registered doctor with medical council of India or any other council dealing in allopathic, homeopathy, naturopathy or any other discipline of treatment , then it is required for you to take registration and pay PT.
If I have taken GST Registration, should I also need to take Profession tax registration?
Yes, any Business, Profession , Trade or calling operating for profit motive in Maharashtra need to take profession tax number and pay PT every year by filing appropriate challan and return. Now Maharashtra Profession tax department has started sending notice for all GST registered dealer who has taken GST but not registered for PT.
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We are handling more than 1500+ successful clients and providing them with services which covers Legal, Technical, Taxation and other business compliance part. That all says a lot on our ways of working and our expertise in the area.
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At AKT associates we have been our client’s obvious choice since more than 20 years. For serving you with the best results we use our experience of decades which has exposed us with deep understand.
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