Professional Tax is like Income tax but is collected by the State Government. It is a tax on all kinds of professions, trades and employment and levied based on the income of such profession, trade and employment. It is levied on employees, a person carrying on business including freelancers, professionals etc.
Let the experts of Corporate Sewa Kendra offer you the needful aid on the P-Tax Registration & Filling process. P-Tax or Professional Tax is being imposed by all the State Govt. on every paid individual. The P-Tax is inflicted based on the profession, trade, or employment of the individual taxpayer. The tax rates also varied according to the various State Governments but the highest amount of payable P-Tax is INR 2000 per annum. Till now, states like Maharashtra, Karnataka, Gujarat, Kerala, West Bengal, Assam, Madhya Pradesh, Orissa, Tripura, and Meghalaya are charging this particular tax.
What is the Applicability of Profession Tax?
Company/Firms/LLP: Company, firms, LLP, Corporation, societies, HUF, Associations, clubs are taxable entities.
Professionals(Individuals): Legal Practitioners like solicitors, Notaries, medical representatives like dentist, medical consultants, doctors and other professionals like management consultants, tax consultants, surveyors, CS, CA, Insurance agents, engineers, architects and contractors are all considered as professional individuals who need to pay professional tax.
What is a Professional Tax Certificate?
There are two types Professional tax certificates:
- PTEC (Professional Tax Enrollment Certificate): This is paid by the business entity, owner or a professional i.e. Private/ Public Limited Company, Sole Proprietor, Director Etc.
- PTRC: (Professional Tax Registration Certificate): Government or Non- Government employer deducts the tax from the employee’s wages and deposits the same to the government.