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Professional Tax Registration Online

Professional Tax Registration Online

Professional Tax Registration

Professional Tax may be a tax imposed by the government on all salaried workers including employees, professionals, and trades in India. Professional Tax Registration Online is a compulsory registration process for all the employees employed in a company. It is essential for every business or entity within 1 month after its registration or commencement of business with the help of Tax Consultants in India.

Who Pays Professional Tax?

Self-employed individuals who are working in any kind of profession, business, and trade will come under the category of professional tax and are legally responsible for paying professional tax to the state government. This tax is collected by the Commercial Taxes Department and the tax slabs differ for each state. The tax is calculated from the annual taxable income of the professionals and it can be paid annually and also as monthly tax. It is mandatory for a self-employed individual to get the certificate of Enrolment from the authorized authority in the specified format.

If a salaried individual or wage earner’s, Professional tax is deducted from the salary of the employees every month. An employer cannot make a deposition of the deducted amount without getting the registration certificate from the respective authority.

Benefits of Professional Tax Registration Online

Following are the reasonable factors why should one never miss professional tax:

Paying knowledgeable tax may be a judicial requirement and if a person avoiding it are often reliable for the penalty or legal issues and self-employed individual and employer should also pay their professional tax depending on their rates or wages provided by their respective state within the prescribed time.

Professional tax is straightforward and straightforward to suits. Rules and regulations governing professional tax enforce minimal restrictions and it's very simple to urge registered with uncomplicated monthly or annual compliances.

The deduction is often laid claim of earlier paid professional tax.

Being a state tax, the Professional tax a local tax authority’s obligation to get the professional tax deducted from fees of the professional, business income, and salary.

Documents Required For PT Registration For Company /LLP

  • Certificate of Incorporation, MOA & AOA / LLP Agreement.
  • PAN card of Company/LLP duly attested by directors of the company
  • Premises proof of Company and a NOC from the owner of such premises
  • Bank Account of Company: Cancelled cheque and bank statement.
  • List of Directors, passport size Photographs of all Directors, id and address proof.
  • Board Resolution or consent statement of partners
  • Attendance Register & Salary Register

What is the Procedure of Professional Tax Registration?

Procedure for Professional Tax registration may be a State-specific query. Further, counting on the State’s requirement, Professional tax returns also got to be filed at specified intervals. Professionals/Employer seeking professional tax registration shall follow these steps:-

Step-1- Filing The Application Online

The applicant can apply online through the CTD portal of a specific state.

Step-2-Filing The Form Along With The Requisite Documents

The applicant shall file the shape alongside the requisite document.

Applying In Offline Mode

One can also apply offline by submitting the application form along with the requisite documents and prescribed fee to the concerned State Government.

Step-3-Submit Hard Copy

Once the applicant applied for registration, he/she should submit the physical copy to the concerned tax department.

Step-4- Scrutinization By The Tax Authority

On receipt of an application, the tax authority shall scrutinize it for its correctness.

Step-5- Issuance Of Registration Certificate

After scrutinization, if the authority gets satisfied, it shall approve the same and issue the registration certificate to the applicant. In case if the department found a flaw in the application, it can definitely raise queries that shall be responded to on time.

What Penalties are Imposed just in case of Violation of Professional Tax Regulation?

The Penalty for violation is imposed on the individuals who default in submitting their professional tax. The states that are collecting Professional tax, impose a penalty for not registering professional tax once it has become applicable. Though, the quantity of penalty varies from state to state.

Fails To Get Registration

He is going to be susceptible to a penalty for the amount during which he remains unregistered.

Fails To Deposit To The Government/ Late Deposition

He is going to be susceptible to a penalty for the amount during which he remains unregistered.

Non-Deposition Of Amount

The officials have the power to recover such amount along with applicable penalty and interest from the assets of such defaulter. Moreover, they can attach his bank account also. In serious cases, prosecution cases also can be filed.

Further, states also impose penalties for failing to initiate any payment within the maturity and also failing to file the return within the required maturity.

  1. A penalty of Rs5/- per day is applicable on late obtaining the registration of the certificate.
  2. In case of non/late payment of professional tax, the penalty will be 10% of the amount of tax. An individual is liable to pay Rs 1000 in case of late filing of returns. Also, if the delay is for quite a month, a penalty of Rs 2000 is going to be imposed.
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