Professional tax is a state level tax that is applicable to persons practicing several professions, trades, callings and employments and in Maharashtra it is regulated under Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. The main aim of professional tax is to provide revenues for local bodies and state government which will further help in development and sustenance of basic amenities consummated by the government. This tax is levied on a variety of persons and the common ones include the earners of wages, salaries, doctors, lawyers, traders, and all sorts of employees who are into other kinds of businesses. As we have seen, employers are bound to deduct professional tax from the wages of their employees and pay to the government.
In the registration process one acquires the employer's Professional Tax Registration Certificate (PTRC) and in the case of an employer or any person liable to pay this tax he/she acquires the Professional Tax Enrollment Certificate (PTEC). Any business or professional ought to abide by the registration time table to avert attracting any punishment. Failure to make the correct payments or make them on time can be disastrous since this leads to penalties, fines as well as interest charges, employers as well as employees need to have adequate knowledge on the amount that is legally chargeable, the due date and the state laws on tax.
Table of Content
Professional tax is the state-level direct tax levied by the different Indian states from individuals and other legal entities involved in different professions, trades, and employment. Income tax is the tax levied by the central government and is the same throughout the country, but the professional tax is the tax that is collected by every state government of India, and that’s why different states have different rates of professional tax and different rules and regulations also.
The ambit of professional tax certification embraces all manner of professions and trades and extends to different professions and professions such as doctors, lawyers, and accountants, as well as business and corporate firms, among others. There are also some differences in the rates of professional tax and its regulations in different states of India depending on the profession or type of business.
Registering for professional tax is beneficial to several parties involved, especially the employer and the employees since it is legal and has practical values. Below are some benefits of professional tax registration:
Online registration of Professional Tax In Maharashtra is possible through the official site of Maharashtra Commercial Taxes Department. Below is the process to be followed while registering for Professional Tax in Maharashtra:
The application for professional tax registration has to be done on Form I if the applicant is an employer or on Form II if he is an employer. This application should be made within 30 days from the period when one is responsible to pay the professional tax.
It can be done online under the reference of the Maharashtra Commercial Taxes Department. Candidates are required to complete some of the enclosed forms and submit the necessary enclosures like:
Finally, once the application has been approved, the TIN will be assigned and this will be required in all the transactions that involve taxes.
Once registration is complete, a certificate of enrolment is issued to the employer through which employees’ salaries can be withheld for professional tax.
The documents required for professional tax registration vary depending on whether you are registering as an employer or an individual. Here’s a comprehensive list of the documents typically needed for both types of registrations:
The professional tax in Maharashtra is structured based on income slabs:
| Monthly Gross Salary | Amount Payable as Professional Tax |
|---|---|
| Up to ₹7,500 | Nil (for male) |
| Up to ₹10,000 | Nil (for female) |
| ₹7,501 to ₹10,000 | ₹175 (for male) |
| Above ₹10,000 | ₹2,500 per annum (₹200 for 11 months + ₹300 for February) |
Note:Professional fees for Professional Tax Registration is ₹2000
Failure to register or pay the professional tax on time can lead to a significant penalty of 1.25% per month may be imposed for late payments.
Conclusion
The professional tax registration is an important legal compliance that one must get in the state of Maharashtra if he or she is in any professions, trades, employment or otherwise. It also protects the state’s residents from unlawful practices in line with the spirit of the constitution, the local government earns revenue for services and implementing infrastructure projects. This process requires submission of several documents and acquisition of certain certificates besides following income based tax slabs. Receiving registration and paying for it on time also excludes such concepts as penalties, fines and interest, which will guarantee legal activity to businessmen and the availability of certain state benefits. It is extremely important for business owners to keep abreast of the processes and the laws affecting them so that there is seamless running of the business without attracting any fines or penalties.
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Frequently Asked Questions
Profession tax is the state level tax levied from persons practicing any profession, trade or employment. They have to pay it in Maharashtra irrespective of whether they are a salaried worker or a professional such as a doctor, lawyer or businessman.
Visit the Maharashtra GST Department’s official website, register as a user, and submit Form I for Professional Tax Registration. Upload necessary documents, complete the process, and pay the required fee online to obtain the registration certificate.
Yes, it means that if one thinks that the decision or a particular penalty is unfair, then one can seek a review or an appeal by going through the set procedures from the Maharashtra Commercial Taxes Department. Back your claims and ensure that you make reference to all the proper courses in appealing the decision.
Visit the official website of Maharashtra GST Department and using your login credentials get into the section that is e-Payment. Choose Professional Tax, enter details of payment, and finally make the payment through net banking or debit/credit card.
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