Highlighting Employer’s Duties. Tax Payments.
@ Rs. 12,899*
*Subject To Change On Market Conditions
Registering and filing your Professional Taxes as employers was never simpler. Sign up with us and receive complete assistance with our stellar range of services to get your Registration Certificate and Enrolment Certificate today.
What Is Professional Tax?
Professional Tax (PT) is a State Tax where an amount is levied on a person employed by the respective states of the employee. The professional tax comes under the purview of the State Government in India. Each State and Union Territory in India has their own ceilings and tax rates to levy on the employed people in their jurisdiction. While states like Delhi and Haryana don’t have any Professional tax, states like Maharashtra and Karnataka levy the same on their employed citizens. Under the provision of the respective Acts, “Professional Tax shall be paid by all the persons involved in any profession or calling, or if they are engaged in a trade or hold any appointment, public or private as specified in the Schedule of the Act.”
The parties to payment of Professional Tax are mentioned as follows:
- Protection from Tax-Authorities
- Proper Documentation
- Reduction of overall owed balance
- Avoid seizure of Bank Account and other properties
Professional Tax is payable by individuals and business entities (referred to as a “Person”) employed or employing in any profession, trade, callings or businesses in the states mentioned below:
States That Levy Professional Tax:
- Andhra Pradesh
- Karnataka
- Kerala
- Maharashtra
- Gujarat
- Tamil Nadu
- Assam
- Puducherry
- Meghalaya
- Chhattisgarh
- Tripura
- Bihar
- Puducherry
- Jharkhand
- Madhya Pradesh
- West Bengal
- Manipur
- Mizoram
- Odisha
- Nagaland
- Sikkim
Employer Professional Tax Registration: Enrolment Certificate (EC)
- Registration is compulsory
- Each employer has to pay a professional tax of Rupees 2,500 upon registration
- Each employer has to pay Rs 2,500 Professional Tax per employee in April each year
- Every business entity in the states applicable has to obtain the Certificate of Enrollment (EC) from a Professional Tax Officer within 30 days from the date of commencement business. This registration is mandatory for entities irrespective of whether they employ staff or not
All the registered businesses with an Enrollment Certificate are liable to pay Professional Tax on behalf of the employee annually, before the 30th of April at the rates specified. The tax payable and the date by which the amount has to be paid by the employer are mentioned in the certificate of enrollment. If an employer fails to obtain a registration certificate or enrollment certificate within the time limit specified, the assessing authority shall charge a penalty for the delay. The rate of Employer Professional Taxes for Companies, LLPs, and Partnerships is Rupees 2,500 annually.
Procedure
Following are the requirements of Professional Tax registration:
Documents Required
All Business Registration Documentation
- Incorporation or Registration Certificate
- Company PAN Card
- MOA & AOA of Company or LLP Agreement or Partnership Agreement etc
- Canceled cheque of the current account of the said business
- Address proof of business premises – Electricity bill / Tax Receipt or valid rental agreement in the name of the
- company & Electricity bill copy in the name of the owner
- Last Balance Sheet of the Previous FY, if any
- Letter of Authority
