1. RECEIPT OF TAX NUMBER

The TIN will be issued within 15 days of the professional tax registration

2. Professional Tax Applicability

Professional tax is levied on all types of trades and professions in India. It has to be paid compulsorily by every state member who is employed in any private firm operating in India. Professional tax registration is the onus of every business owner, who must take up responsibility for deduction of professional tax and payment for the same

3. PROFESSIONAL TAX VARIATION WITH EACH STATE

Professional tax payment will always have distinct rates that keep varying from state to state. The state governments which are levying state tax are West Bengal, Maharashtra, Karnataka, Kerala, Assam, Madhya Pradesh, Orissa, Tripura, Meghalaya, and Gujarat.

4. PROFESSIONAL TAX FOR SELF-EMPLOYED

Any professional who gets a regular income on a monthly basis will have to pay the professional tax. By the term professional, we imply people working in specialized fields like accountancy, media, medicine, information technology, media, etc. Professionals offering freelance services also need to pay professional tax using a special type of form. They can apply for the form and get a registration number first. Then, using that number, they can pay their taxes in the corresponding banks.

5. IT IS A JUDICIAL REQUIREMENT

As per the rules and regulations of India, every employee is bound to make the professional tax payment without fail. Employers in many states of India are strictly bound by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and pay the service taxes of all the employees who work under them.

6. TO AVOID PAYING PENALTIES

Failure to professional tax registration results in huge penalties that keep on increasing over time.

7. EASY TO COMPLY

When something is easy to comply, it won’t be difficult to follow. The professional tax regulations are so easy to follow that and not difficult to comply with.

8. DEDUCTIONS

Deductions can be claimed in the salary on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer made the payments.

9. THE STATE GOVERNMENT TAX

The local authorities and the state government have the right to collect all the professional taxes based on employment, profession trades and much more. The collected amount of professional tax per annum should not go beyond Rs. 2500 per an annum.

10. Professional Tax Registration Process in India

The professional tax registration procedure is very easy. Here are three important points that one needs to know and understand in detail.

1. VARIES ACCORDING TO STATE

In case you are a business owner and have employees under different states working for you, then you will have to get a professional tax registration for all the states. The tax slab rates can vary from one state to another. This can make it a cumbersome task for small-scale industries. Many states in North India do not have professional taxes.

2. THE FREQUENCY OF FILING RETURNS

The frequency with which one needs to be returns will depend on the state the person resides in. Hence, before filing for a return it is important to know the rules of the state.

3. THE PENALTIES THAT AWAIT

The Maharashtra government, for instance, can levy a penalty of about 10 percent the amount which was delayed. Hence, the more one avoids paying the registration, the more they will have to worry about the penalties.

11. Documents required for Online Professional Tax Registration

Here is a list of documents required to register for professional tax:

1. Certificate of Incorporation, including MOA & AOA / LLP Agreement.
2. PAN card of Company/LLP which is attested by the company director
3. Place of business proof along with a NOC from the owner of the premises
4. Bank account of the company including bank statement and cancelled cheque.
5. Passport size photographs, address and identity proof from all the directors
6. Board resolution or in other words, the statement of consent by the partners.
7. Shop and establishment certificate Salary register and attendance register

12. The application form for professional tax will be then filled up by the employees and then submitted to the concerned authorities by our expert affiliates. If the documents are all provided in order, then the process will not take more than two working days.
13. Within five to seven working days, the basic acknowledgment will be provided by us. In case the documents are not in proper order, the inspector will ask for the missing documents. As soon as you provide the missing ones, the process will be completed. The registration hard copy will be issued with 10 days in all the major cities. In other places, it might take up to 15 to 20 working days.