We provide Professional Tax Registration in Patna, Bihar. Professional Tax is also known as States income tax. Professional tax is levied by state governments of India on salary of individuals, income of professional engaged in practice etc. We will give you all information about Professional Tax registration in this article in brief.
Professional Tax Registration
Professional Tax registration means, registration in state level tax. Professional tax levied to salary of individuals and professionals like advocates, chartered accountants, company secretary, cost accountants, doctors etc. Professional tax registration is mandatory within 30 days of from start of business or in case business 30 days of employing staff in business. Professional tax is imposed at state level; it is source of revenue of State governments. In India all state have its own rate of professional tax i.e. it is different states have different Professional Tax rates. Owner of business is liable for Professional Tax registration. Owner is also responsible for deduction of Professional tax from salary of its employees and paid to governments. Professional Tax is deducted from salary of employees every month. Professional Tax rates are based on the income slabs set by state governments. If business entities is established in more than one state than they need to get a professional tax registration in each states. The Professional Tax may be paid to the government on monthly basis or quarterly basis or annually it is depends on respective state government laws.
Advantage of Professional Tax Registration:
- For fulfill the statutory requirement of State government tax law.
- Avoid penalty to obtain failure of Professional Tax registration.
- For easy compliance with professional tax regulations.
- For deduction of tax from salary of employees or income of professionals.
- For payment of state government tax.
Documents Required for Professional Tax Registration:
- Copy of pan card of all Directors / partners of the business entity.
- Copy of pan card of business entity.
- Copy of MOA & AOA of business entity.
- In case of professionals all KYC documents.
- Rent agreement/ Electricity Bill of Business premises.
- Bank statements of business.
- List of employees.
Procedure of Professional Tax Registration:
- Documents preparation.
- Online filing application filing with documents.
- Documents post to department.
- Payment of fee.
- Certificate issued by department.
Professional Tax registration is mandatory for all private companies where salary of employees is exceeds the limit prescribed by relevant state laws. Professional tax is source of income for state governments.
For financial year 2018-19 following are the slab for professional tax:
- If salary is up to Rs. 300,000/- then no professional tax would be payable
- If salary is in between Rs. 300,001- Rs. 500,000/- then Rs. 1000/- professional tax would be payable
- If salary is in between Rs. 500,001- Rs.10 lakhs then Rs.2000/- professional tax would be payable
- If salary is Above Rs. 10lakhs then Rs. 2500/-professional tax would be payable
Professional Tax registration is fully online process. So it is good for business entities. You ne need to visit our office. Send us all your documents with sign and stamp through emails. We will do your work. You pay our fee online.