Proffesional Tax
Professional Tax is known to many as an item which appears in Form 26AS. Broadly, it is a tax levied by various state governments of India on salaried individuals working in government or non-government entities or in practice of a profession such as Chartered Accountants, Lawyers, Doctors, etc. or carry out some form of business. Since it is a tax levied by the states, the rates and methods of collection vary from state to state.
Legal Provisions of PT
Process of ESI Registration
There are generally no compulsory registrations required to be taken by the Sole Proprietor. However, following voluntary registrations may be taken if the owner wishes to expand the business:
1. Submission of Documents
2. Filing of Application
3. Follow-up with Authorities
4. Grant of Registration Certificate
1. Submission of Documents
You need to submit requisite documents with the StartUp Movers team. Our team of professional will vet the documents and intimate the deficiencies, if any.
2. Filing of Application
Our team will submit the application for registration with the concerned department of the state where registration is required. Different states have prescribed different procedure of registration.
3. Follow-up with Authorities
Our team keeps up regular check with the concerned authorities. The deficiencies, if any, shall be communicated to you. The response is submitted to the queries raised by the department.
4. Grant of Registration Certificate
After satisfaction, the final registration certificate is issued by the concerned authorities.
Documents Required
Certificate of Incorporation
Certificate of Incorporation, MoA and AoA in case of company;
LLP Agreement
LLP Agreement in case of LLP.
Employees Pan Card
Copy of PAN Card of Employee.
Proof of Premises
Proof of Premises of the Company and NOC from owner if it is not owned.
Details of Bank Account
Details of Bank Accountof Company, Cancelled Cheque and Bank Statement.
Director Details
List of Directors, Passport size photographs of all Directors, and their ID and Address Proof.
Copy of Board Resolution
Copy of Board Resolutionor Consent Statement of partners.
Details of Employees./strong>
Details of Employees.
Attendance Register & Salary Register.
Attendance Register & Salary Register.
- Who should get this registration?
Employers who need to deduct professional tax from the employees’ salaries and deposit them with the government.
Employers ranging from corporates to individuals carrying on trade/profession.
Freelance business persons without any employees (subject to monetary threshold provided by states
- Why should you get this registration?
Failure to obtain professional tax registration could result in fines and penalties that accrue over time. The quantum of penalty varies from state to state.
How StartUp Movers can help you?
HOW STARTUP MOVERS CAN HELP YOU?
- Obtaining ESI Registration
- Assistance in ESI Payment
- Computation of ESI
- Payroll Management
- Filing of ESI Returns
Quick Contact
Frequently asked questions
- Parents of children with permanent disability or mental disability.
- Members of the forces as defined in Army Act, 1950, Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.
- Badli workers in the textile industry.
- Individuals suffering from a permanent physical disability (including blindness).
- Women exclusively engaged as agent under the Mahila Pradhan Bachal Yojana or Director of small savings.
- Parents or guardians of individuals suffering from mental disability.
- Individuals above 65 years of age.
- Profession Tax Enrolment Certificate – Engaged in Profession, Trade and Callings.
- Profession Tax Registration Certificate – Every employer who has employed even a single employee whose salary is above the prescribed limit for deducting Profession Tax.
The procedure of registration varies from state to state. Some states have online procedure and some have off-line.
No payment apart from the registration fees is required to be made.
Professional tax being levied by the State Government. Every state has its own laws and regulations to govern professional tax of that particular state. Thus, the rate varies from state to state. Generally, the state follows slab-based taxation.
Article 276 of the Constitution empowers the State Government to levy professional tax. It has provided for a maximum cap of INR 2,500 beyond which professional tax cannot be charged on any person.
Professional tax is allowed as a deduction from the salary income. The maximum amount of professional tax that can be levied by a state is INR 2,500. This deduction can be claimed in the Income-tax return by employee.
Any sum deducted by the Principal employer from wages under the ESI Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted as per Section 40 (4) of the ESI Act,1948. Non-payment or delayed payment of the Employee’s contribution deducted from the wages of the employee amounts to ‘ Breach of trust’ and is punishable under IPC 406, 409 and also an offence u/s 85 of ESI Act.
For ESI compliance the employer has to maintain following records:
- Muster roll, wage record and books of Account maintained under other laws.
- Accident Register in new Form-11.
- An inspection book.
- The immediate employer is also required to maintain the Employees’ Register for the employees deployed to the principal employer.
