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.

In the realm of business compliance, one aspect that often demands attention but might be overlooked is professional tax registration. It’s a mandatory requirement in many regions for businesses, professionals, and practitioners to register for professional tax to ensure adherence to local tax regulations. In this blog post, we’ll delve into the significance of professional tax registration, the process involved, and why it’s essential for businesses to stay compliant.

Understanding Professional Tax:

Professional tax is a state-level tax imposed by the government on individuals and entities engaged in various professions, trades, or employment. It is a source of revenue for state governments and is typically levied based on the income earned by professionals or the size of a company’s workforce. The rates and regulations governing professional tax vary from state to state in countries like India.

Why Professional Tax Registration Matters:

Legal Compliance: Registering for professional tax ensures compliance with local tax laws and regulations, avoiding penalties, fines, and legal repercussions.
Employee Welfare: Professional tax is often deducted at source from employees’ salaries, and registration ensures that these deductions are made correctly and remitted to the appropriate authorities.
Business Reputation: Compliance with tax obligations enhances a business’s reputation and credibility, fostering trust among stakeholders such as clients, partners, and investors.
Avoidance of Penalties: Failure to register for professional tax or pay the required taxes on time can lead to hefty fines, penalties, and even legal action against the business or individual.

Steps for Professional Tax Registration:

While the specific process may vary depending on the jurisdiction, here’s a general outline of the steps involved in professional tax registration:

Determine Eligibility: Verify whether your business or profession is liable to pay professional tax based on local regulations and guidelines.
Gather Documentation: Prepare the necessary documents, such as proof of identity, address, business registration certificate, and PAN card.
Visit the Tax Department: Contact the local tax department or visit their website to obtain the application form for professional tax registration.
Fill Out the Application Form: Complete the application form with accurate information, ensuring that all fields are correctly filled out.
Submit Required Documents: Attach the required documents along with the application form and submit them to the designated tax office or authority.
Pay Registration Fees: Pay the applicable registration fees as specified by the tax department. The fees may vary depending on factors such as the nature of the business and the number of employees.
Receive Registration Certificate: Upon successful verification of the application and payment of fees, the tax department will issue a professional tax registration certificate.
Compliance and Renewal: Ensure ongoing compliance with professional tax regulations, including timely payment of taxes and renewal of registration as required.

Conclusion:

Professional tax registration is an essential obligation for businesses and professionals to fulfill their tax responsibilities and stay compliant with local regulations. By understanding the significance of professional tax, following the registration process diligently, and maintaining compliance, businesses can avoid legal complications, protect their reputation, and contribute to the overall welfare of employees and society.

Remember, professional tax registration is not just a legal requirement but also a reflection of a business’s commitment to integrity, transparency, and responsible citizenship. So, whether you’re a sole proprietor, freelancer, or business owner, prioritize professional tax registration as an integral part of your compliance strategy. Your proactive approach to tax compliance will not only benefit your business but also contribute to a more robust and equitable tax ecosystem.