BBNC

Professional Tax Registration


Professional tax is tax on income earned by employees or self-employed people. Professional tax is a state level tax and professional tax registration needs to be taken by every employer who has one or more employees.
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Overview

Every person earning income from salary or profession such as Company secretory, Doctor, Chartered accountant, Lawyers, contractors, architects, etc. and also entities such as Private Limited Company, LLP, Proprietorship, HUF, etc. are liable to pay professional tax.

Professional tax is a fixed amount that needs to be paid to the state government. Professional tax is different from one state to another, and in some states it not applicable at all.

Professional Tax Applicable States: Karnataka, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura, Madhya Pradesh, Bihar, Sikkim, Nagaland, Manipur, Mizoram, and Jharkhand etc.

Under the Professional Tax Regulations, an employer must obtain TWO registrations depends on the status whether there are people employed by the business or not.

  • Professional Tax Employer Registration - Certificate of Enrollment (EC): Every business entity shall obtain professional tax enrollment certificate within 30 days from the date of commencement of business.
  • Professional Tax Employee Registration - Certificate of Registration (RC): Every employer is liable to pay professional tax on behalf of their employees. They need to take this registration within 30day form the date of joining of the first employee.



  • Benefits of Professional Tax Registration

    Benefits of professional tax registrations are given below

    Avoid Penalties

    Professional Tax is a Compulsory statutory requirement so if organizations fail to obtain professional tax registration, they will face fines and penalties which may increase overtime.

    Simple Process

    Getting registered under professional tax is a simple process, it can be processed quickly.

    Tax Claim

    Under Section 16 of Income Tax Act, 1995, employees can claim deductions based on the amount paid for Professional Tax. The deductions shall be enabled within the year during which the taxpayer has made the payment.

    Easy Compliance

    Unlike GST and TDS Professional tax calculations and filings are simple, as per the state there is a fixed amount that needs to be paid to the state government.

    Revenue source for state govt

    Professional Tax is a revenue source for the State Governments that helps in implementing numerous welfare and development schemes for that region.

    Checklist/Requirements

    The required list of documents to get the professional tax registration is given below

    1. PAN card of the LLP/ Company (attested by the Company’s Director/partners)
    2. Proof of Registered Office alongside a NOC from the premise owner
    3. Bank account details of the Company with a bank statement and cancelled cheque
    4. Certificate of Incorporation like MOA, AOA or LLP Agreement
    5. Board Resolution or the Declaration of consent by Partner
    6. Salary and attendance register
    7. Address proof, PAN card and passport size photos with the signature of all the Directors/partners
    8. Shop & Establishment Certificate (if available)

    Process of Professional Tax Registration

    Step 1: Share required Documents and Information

    Step 2: Preparation of registration application

    Step 3: Application for professional tax registration with the state government.

    Step 4: Receive Professional Tax Registration Certificate

    Key Deliverables

    1. Professional tax registration certificate
    2. Challans paid to the govt

    Professional Tax Registration

    Why Choose Us

    Entrepreneur Friendly

    We make the process so easy and fast that you will not even feel the headache of all the paperwork, and our professionals will provide you all the promised deliverable within a given span of time.

    Experienced Professionals

    All our professionals are qualified and specialized in that particular work. Making sure no mistakes are done at the time of filings with the authorities so that company won’t have to pay any penalties due to mistakes.

    One Stop for All Your Requirements

    We support you throughout the journey of your business, from the incorporation, Accounting and taxation support, Secretarial compliance support, and Legal support.

    Cost-Effective

    We believe that cost plays a vital role in any company’s growth stage, that’s why we do not surprise our clients with hidden charges, you pay what you see in the initial proposal.


    Frequently Asked Questions


    Every branch of a firm, company, corporation or other corporate body, any society, club or association is treated as separate person for the aim of tax liabilities.
    Every employer registered, shall furnish to the assessing authority within sixty days (on or before 30th May) of the expiry of the year, a return within the prescribed form showing therein the salaries and wages paid by him and the amount of tax deducted by him in respect thereof during the preceding year.
    The persons who have attained the age of 65 years, Salaried or wage earning deaf and dumb persons, A Physically handicapped person not less than 40% of permanent disability are exempted from paying professional tax.
    Professional tax is calculated on the salary or income slab of the professional, under minimum salary there is no tax. The maximum amount paid as professional tax to the state government 2500 per year per employee. This tax slab differs from one state to another.
    In states like Maharashtra, generally people are required to pay PTEC registration. This is a liability which is nowhere in relation to GST. So you have to pay if you are liable for that and in fact it needs to be paid along with interest at 15% p.a .