Professional Tax Registration

A tax is a financial charge imposed upon

a taxpayer that is an individual or a legal

entity by a state or any other authorized

body with a purpose of funding various

public expenditures. One of such taxes is

the Professional Tax.

What is Professional Tax ?

Professional tax is the tax by the state governments in India. Anyone earning an income from salary or

anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are

required to pay this professional tax. Different states have different rates and methods of collection.

Professional tax is imposed at the state level. Different states have different rates and methods of collection.

However, not all states impose this tax. The states which impose professional tax are

• Karnataka

• Bihar

• West Bengal

• Andhra Pradesh

• Telangana

• Maharashtra

• Tamil Nadu

• Gujarat, Assam

The professional tax is a source of revenue for the State Governments. It is also payable by members of staff

employed in private companies.

Who is responsible to deduct Professional Tax ?

The owner of a business is responsible to deduct professional

tax from the salaries of his employees and submit the

amount so collected to the appropriate government

department.

He has to provide a return to the tax department in the

prescribed form within the specified time.

The return should include the proof of tax payment. In case

the payment proof is not enclosed, the return shall be

deemed incomplete and invalid.

Documents Required

Common documents required for Professional tax registration are :

Acknowledgment of Online submitted form along with the printout of the

originally submitted form

Self Attested Copy Of PAN Card

Proof of the Constitution of Business

Proof of the Residence of the Partners, Director & Proprietor

Proof of the Place of Business (Address Proof)

Blank Canceled Cheque

Shop and Establishment Certificate

PAN and PTEC Details of all the Partners or Directors

Details of the number of employees, as well as their salary slabs.

Also, it is to be noted that , all these documents are required to be self attested

Procedure for Registration

The first step is to get registered as a ‘payee’ of professional tax in the

local Professional Tax Office under the respective State’s Act. This is

mandatory for all individuals, persons and bodies who are liable to pay

professional tax.

As to calculation and payment of these taxes through prescribed forms

and methods, you have to do it yourself. Your calculation and payment

has to be audited and certified by a Chartered Accountant.

When it comes to employees however, it is the duty of the employer to

deduct Professional Tax. That is, apart from paying professional tax for its

own activities, every employer has to calculate, deduct and pay the

professional tax on the salaries paid to employees.

How can LegalRaasta help you ?

Register for Professional tax through LEGALRAASTA - Your online companion for professional tax registration. We at LegalRaasta have helped over thousand companies in professional tax registration.

You first need to

Go to our website www.legalraasta.com and select Professional tax registration option.

Then Fill our online questionnaire.

Select a package. Here you can also opt for additional legal services like ITR filing and service tax registration and pay accordingly.

Submit the required documents online to us and you are done on your part; we will take care of the rest.

Once, we are done you will be intimated and in case you have any query in between the process or if you want to track your application status you can freely contact us.

That's it about professional tax registration.