Professional Tax Registration

Professional tax is a statewide tax imposed on employees who earn an income by providing services. It is nothing but a tax imposed on income of employees or self-employed individuals like freelancers, professionals etc. subject to the threshold of income earned. The professional tax is collected by the Commercial Tax Department. Every employee, professionals, freelancers etc. are under an obligation to seek the Professional Tax Registration. All employers are under an obligation to deduct and pay tax on behalf of their employees. The professional tax rates differ across all states, however, the maximum amount that can be levied as professional tax is INR 2,500 per annum.

What is the Scope of Professional Tax?

Company/Firms/LLP: A taxable entity is a company, a firm, an LLP, a corporation, a society, a HUF, an association, or a club.

Professionals(Individuals): Legal practitioners, such as solicitors and notaries, medical representatives, such as dentists, medical consultants, and doctors, and other professionals, such as management consultants, tax consultants, surveyors, CS, CA, Insurance agents, engineers, architects, and contractors, are all considered professional individuals who must pay professional tax.

How to Register for Professional Tax?

The professional tax registration procedure differs by state. The tax slab rates can range from one state to the next, therefore if a business owner has employees in multiple jurisdictions, he or she must obtain a professional tax registration in each of those states.

Points for Attention

The frequency with which one must file returns is determined by the state in which one resides. It's critical to understand the state's requirements before filing a return.

When it comes to employees, the employer must deduct the professional tax from their salary. After registering, the person is liable for paying Professional Tax.

What are the Documents required for professional tax Registration?

Acknowledgement of the online form, along with the print out of the digital form submitted.
Copy of PAN Card.
Residence proof of Partner, Director, Proprietor.
Proof of Constitution of business like Certificate of Incorporation.
Address proof of Business place.
Blank Cancelled Cheque.
Establishment Certificate.
PTEC details.

We can help you for Professional Tax Registration in your respective state. Please log-on to bestlegalservices.in for more details.