It is not imposed in all the states. States that levy professional tax are Andhra Pradesh, Assam, Chattisgarh, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalya, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura and West Bengal.
It is deducted from the salary of salaried employees by the employers and deposited with the State Government.
It is mandatory within 30 days of employing staff in a business and for professionals, it is mandatory to take within 30 days of starting practice..
Deduction from salary can be claimed by the taxpayer on account of professional tax paid. The deduction will be allowed in the year in which the tax is actually paid by the employee.
Compliance with professional tax regulation is easy.
Professional tax being levied by the State Government. Every state has its own laws and regulations to govern professional tax of that particular state. Thus, the rate varies from state to state. Generally, the state follows slab-based taxation.
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You need to submit requisite documents with the StartUp Movers team. Our team of professional will vet the documents and intimate the deficiencies, if any.
Our team will submit the application for registration with the concerned department of the state where registration is required. Different states have prescribed different procedure of registration.
Our team keeps up regular check with the concerned authorities. The deficiencies, if any, shall be communicated to you. The response is submitted to the queries raised by the department.
After satisfaction, the final registration certificate is issued by the concerned authorities.
Employers who need to deduct professional tax from the employees’ salaries and deposit them with the government. Employers ranging from corporates to individuals carrying on trade/profession. Freelance business persons without any employees (subject to monetary threshold provided by states
Failure to obtain professional tax registration could result in fines and penalties that accrue over time. The quantum of penalty varies from state to state.
Certificate of Incorporation, MoA and AoA in case of the company.
LLP Agreement in case of LLP.
Copy of PAN Card of Employee.
Proof of Premises of the Company and NOC from the owner if it is not owned.
Details of Bank Account of Company, Cancelled Cheque, and Bank Statement.
List of Directors, Passport size photographs of all Directors, and their ID and Address Proof.
Copy of Board Resolution or Consent Statement of partners.
Details of Employees.
Attendance Register & Salary Register.
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Everything you need to know about the product and billing.
The procedure of registration varies from state to state. Some states have an online procedure and some have off-line.
No payment apart from the registration fees is required to be made.
Professional tax being levied by the State Government. Every state has its own laws and regulations to govern professional tax of that particular state. Thus, the rate varies from state to state. Generally, the state follows slab-based taxation.
Article 276 of the Constitution empowers the State Government to levy professional tax. It has provided for a maximum cap of INR 2,500 beyond which professional tax cannot be charged on any person.
Professional tax is allowed as a deduction from the salary income. The maximum amount of professional tax that can be levied by a state is INR 2,500. This deduction can be claimed in the Income-tax return by the employee.
Any sum deducted by the Principal employer from wages under the ESI Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted as per Section 40 (4) of the ESI Act,1948. Non-payment or delayed payment of the Employee’s contribution deducted from the wages of the employee amounts to ‘Breach of trust’ and is punishable under IPC 406, 409 and also an offence u/s 85 of ESI Act.
For ESI compliance, the employer has to maintain the following records: