Professional Tax Registration
Income earned by employees or independent contractors is subject to professional tax. Professional tax is a state-level tax, and all employers with one or more employees must register for professional tax.
Overview
Professional tax must be paid by all individuals who receive compensation from their jobs or professions, including doctors, chartered accountants, lawyers, contractors, architects, and company secretaries, as well as by organisations like HUF, LLP, private limited companies, and proprietorships.
The amount of professional tax that must be paid to the state government is set. States have varying laws regarding professional taxes, and others do not impose them at all.
West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura, Madhya Pradesh, Bihar, Sikkim, Nagaland, Manipur, Mizoram, Jharkhand, and Karnataka are among the states that apply professional taxes.
An employer is required to get TWO registrations under the Professional Tax Regulations, depending on whether or not the business employs people.
Benefits of Professional Tax Registration
The following are advantages of professional tax registrations.
Prevent Penalties:
Organisations that do not register for professional tax may be subject to fines and penalties, which may escalate over time, as professional tax is a mandatory statutory requirement.
Easy Procedure:
The process of becoming registered under professional tax is easy and quick.
A tax claim:
Employees may claim deductions under Section 16 of the Income Tax Act of 1995, depending on the professional tax paid. During the year in which the taxpayer made the payment, the deductions will become available.
Simple Compliance:
Professional tax computations and filings are straightforward in contrast to GST and TDS; nonetheless, the state stipulates a set sum that must be paid to the state government.
Checklist/Requirements
Below is a list of the documents needed to obtain professional tax registration.
PAN card of the LLP or company (attested by the directors or partners of the company).
A NOC from the property owner and proof of registered office are required, as are the company’s.
Bank account data, a bank statement and a cancelled cheque.
Board Resolution or the Partner’s Consent Declaration or a Certificate of Incorporation such as a MOA, AOA, or LLP Agreement.
Pay and attendance record.
Proof of address, PAN card, and passport-sized pictures signed by each director or partner, together with the Shop & Establishment Certificate (if available)
Process of Professional Tax Registration
Step 1: Distribute the necessary information and documents
Step 2: Getting the application for registration ready
Step 3: Submit an application to the state authorities for professional tax registration.
Step 4: Obtain a Certificate of Professional Tax Registration
Key Deliverables
- Certificate of Professional Tax Registration.
- Challans paid to the government.
Why Choose Us
Friendly to Entrepreneurs
Our pros will offer you all of the promised deliverables within the allotted period, and we make the procedure so quick and simple that you won’t even feel the headache of all the paperwork.
Skilled Experts
Every one of our experts is trained and skilled in that specific field. ensuring that no errors are made when filing with the authorities in order to prevent the company from incurring penalties for errors.
One Place to Go for All of Your Needs
We assist you at every stage of your company’s development, including incorporation, accounting and taxation, secretarial compliance, and legal support.
Economical
Since cost is a major factor in any business’s growth stage, we don’t surprise our clients with extra fees; instead, you pay what is shown in the original plan.
