Profession Tax is a State level Tax in India on Professions, Trades, Callings and Employments.
The following Indian states levy Profession Tax – West Bengal, Karnataka, Maharashtra, Andhra Pradesh, Gujarat, Tamilnadu and Madhya Pradesh.
Profession Tax in Maharashtra
In Maharashtra (Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975), Profession Tax is applicable both on Individuals & Organizations (Company, Firm, Proprietary Concern, Hindu Undivided Family (HUF), Society, Club, Association Of Persons, Corporation or any other corporate body in Maharashtra per the provisions of the Maharashtra Professional Tax Act of 1975.
Profession Tax For Individuals in Maharashtra
Every person residing in Maharashtra engaged in any profession, trade, calling or employment is liable and has to obtain a Certificate of Enrolment from the Profession Tax Authority.
Once this certificate is obtained, the person can discharge their individual tax liability for five years by paying lumpsum amount equal to the amount of Profession Tax for four years in advance, getting relief for one year’s payment.
Exempted Individuals in Maharashtra
The following persons are exempted from the provisions of the Profession Tax Act in Maharashtra :
Senior Citizen above 65 years age.
Handicapped Person with more than 40 % disability or parent of a physically disabled or mentally retarded child.
Profession Tax For Organizations:-
An employer organization is required to get registered under the Profession Tax Act and obtain a Registration Certificateunder which the payment in respect of taxes deducted from employees salaries can be made.
Also as a firm, the organization is required to obtain Enrolment Certificate and pay Profession tax on it’s behalf.
New profession Tax Rates after Maharashtra Government Budget and Provisions
Periodicity of Returns
For employers holding Registration Certificate, the period of returns to be filed on basis of annual tax liability amounts are as follows :
- Annual Profession Tax Liability < Rs. 5000 – Annual Return.
- Annual Profession Tax Liability >= Rs. 5000 but < Rs. 20000 – Quarterly Returns.
- Annual Profession Tax Liability >= Rs. 20000 – Monthly Returns.
Returns are required to be filed on or before the last date of the month to which the return relates.
It should contain details of salaries paid and the amount of tax deducted in respect of the month immediately preceding the month to which the return relates.
Due dates for payment of Profession Tax and for filing the returns in Maharashtra:-
For the persons holding Enrolment Certificate – 30th June.
For any delay in the same, interest @ 1.25% per month will be charged.
Bank payment challans to be received by all Enrolment Certificate holders by mid June.
Profession Tax Penalties
- Delays in obtaining Enrolment or Registration Certificate – Penalty of Rs. 2/= (Rupees Two) per Day.
- Providing false information regarding enrolment – Penalty of 3 times tax amount.
- Non-payment of profession tax – Penalty equal to 10% of the amount of tax can be imposed.
Schedule of rates of tax on professions, trades, callings and employments after Budget:
Although new rates been passed in budget but they shall come into force on such date as the state Government may, by notification in the Official Gazette, appoint. ((Government of Maharashtra appointed the 1st July 2009 to be the date from which new profession rates will come into force)
| Sr. No. | Class of Persons | Rate of Tax |
| 1. | 2. | 3. |
| 1. | Salary and wage earners. Such persons whose monthly salaries or wages, | |
| (a) exceed rupees 5,000 but do not exceed rupees 10,000 | 175 per month | |
| (b) exceed rupees 10,000 | 2500 per annum, to be paid in the following manner: – | |
| a) rupees two hundred per month except for the month of February; | ||
| b) rupees three hundred for the month ofFebruary | ||
| 2. | (a) Legal Practitioners including Solicitor and Notaries; | 2500 per annum |
| (b) Medical Practitioners, including Medical Consultants and Dentists; | 2500 per annum | |
| (c) Technical and Professional Consultants, including Architects,Engineers, R.C.C. Consultants, Tax Consultants, Chartered Accountants, Actuaries and Management Consultants; | 2500 per annum | |
| (d)Chief Agents, Principal Agents, Insurance Agents and Surveyors and Loss Assessors registered or licensed under the Insurance Act, 1938, U.T.I. Agents under U.T.I. Scheme, N.S.S. agents under postal Scheme; | 2500 per annum | |
| (e)Commission Agents, Dalals and Brokers (other than estate brokers covered by any other entry elsewhere in this Schedule); | 2500 per annum | |
| (f)All types of Contractors (other than building contractors covered by any other entry elsewhere in this Schedule); and | 2500 per annum | |
| (g)Diamond dressers and diamond polishers; having not less than one year’s standing in the profession. | 2500 per annum | |
| 3. | (a) Members of Association recognised under the Forward Contracts (Regulations) Act, 1952 | 2500 per annum |
| (b) (i) Member of Stock Exchanges recognised under the Security Contracts (Regulation) Act, 1956; | 2500 per annum | |
| (b) (ii) Remisiers recognised by the Stock Exchange; | 2500 per annum | |
| 4. | (a) Building Contractors; | 2500 per annum |
| (b) Estate Agents, Brokers or Plumbers, having not less than one year’s standing in the profession. | 2500 per annum | |
| 5. | Directors (other than those nominated by Government) of Companies registered under the Companies Act, 1956, and Banking Companies as defined in the Banking Regulation Act, 1949,Explanation : The term ‘Directors’ for the purpose of this entry will not include the persons who are Directors of the companies whose registered offices are situated outside the State of Maharashtra and who are not residing in the State of Maharashtra. | 2500 per annum |
| 6. | (a) Bookmakers and Trainers licensed by the Royal Western India Turf Club Limited; | 2500 per annum |
| (b) Jockeys licensed by the said Club | 2500 per annum | |
| 7. | Self-employed persons in the Motion Picture Industry, Theatre, Orchestra, Television, Modelling or Advertising Industries, as follows: | |
| (a) Writers, Lyricists, Directors, Actors and Actresses (excluding Junior Artists), Musicians, Play-back Singers, Cameramen, Recordist, Editors and Still-Photographers, | 2500 per annum | |
| (b) Junior Artists, Production Managers, Assistant Directors, Assistant Recordists, Assistant Editors and Dancers. | 1000 per annum | |
| 8. | Dealers registered under the Maharashtra Value Added Tax Act, 2002, or Dealers registered only under the Central Sales Tax Act, 1956, whose annual turnover of sales or purchases,- | |
| (i) is rupees 25 lakh or less | 2000 per annum | |
| (ii) exceeds rupees 25 lakh | 2500 per annum | |
| 9. | Occupiers of Factories as defined in the Factories Act, 1948, who are not covered by entry 8 above | 2500 per annum |
| 10. | (1)(A) Employers of establishments as defined in the Bombay Shops and Establishment Act, 1948, where their establishments are situated within an area to which the aforesaid Act applies, and who are not covered by entry 8 – Such employers of establishments,- | |
| (a) where no employee is employed | 1000 per annum | |
| (b) where not exceeding two employees are employed | 2000 per annum | |
| (c) where more than two employees are employed | 2500 per annum | |
| (B) Employers of establishments as defined in the Bombay Shops and Establishments Act, 1948, where their establishments are not situated within an area to which the aforesaid Act applies, and who are not covered by entry 8 –Such employers of establishment,- | ||
| (a) where no employee is employed | 500 per annum | |
| (b) where not exceeding two employees are employed, | 1000 per annum | |
| (c) where more than two employees are employed | 2500 per annum | |
| (2) Persons owning / running STD / ISD booths or Cyber Cafes, other than those owned or run by Government or by physically handicapped persons; | 1000 per annum | |
| (3) Conductors of Video or Audio Parlours, Video or Audio Cassette Libraries, Video Game Parlours; | 2500 per annum | |
| (4) Cable Operators, Film Distributors; | 2500 per annum | |
| (5) Persons owning / running marriage halls, conference halls, beauty parlours, health centres, pool parlours; | 2500 per annum | |
| (6) Persons running / conducting coaching classes of all types | 2500 per annum | |
| 11. | Owners or Lessees of Petrol / Diesel / Oil Pumps and Service Stations / Garages and Workshops of Automobiles | 2500 per annum |
| 12. | Licensed Foreign Liquor Vendors and employers of Residential Hotels and Theatres as defined in the Bombay Shops and Establishments Act, 1948. | 2500 per annum |
| 13. | Holders of permits for Transport Vehicles granted under the Motor Vehicles Act, 1988, which are used or adopted to be used for hire or reward, where any such person holds permit or permits for,- | |
| (a) three wheeler goods vehicles, for each such vehicle | 750 per annum | |
| (b) any taxi, passenger car, for each such vehicle | 1000 per annum | |
| (c) (i) goods vehicles other than those covered by (a) | 1500 per annum | |
| (c) (ii) trucks or buses | 1500 per annum | |
| for each such vehicle :Provided that the total tax payable by a holder under this entry shall not exceed rupees 2,500 per annum. | ||
| 14. | Money lenders licensed under the Bombay Money-lender Act, 1946 | 2500 per annum |
| 15. | Individuals or Institutions conducting Chit-Funds | 2500 per annum |
| 16. | Co-operative Societies registered or deemed to be registered under the Maharashtra Co-operative Societies Act, 1960 and engaged in any profession, trade or calling — | |
| (i) State level Societies | 2500 per annum | |
| (ii) Co-operative sugar factories and spinning Mills | 2500 per annum | |
| (iii) District level Societies | 750 per annum | |
| (iv) Handloom weavers co- operative societies | 500 per annum | |
| (v) All other co-operative societies not covered by clauses (i), (ii),(iii) and (iv) above. | 750 per annum | |
| 17. | Banking Companies, as defined in the Banking Regulation Act, 1949. | 2500 per annum |
| 18. | Companies registered under the Companies Act, 1956 and engaged in any profession, trade or calling. | 2500 per annum |
| 19. | Each Partner of a firm (whether registered or not under the Indian Partnership Act, 1932) engaged in any profession, trade, or calling. | 2500 per annum |
| 20. | Each Co-parcener (not being a minor) of a Hindu Undivided Family, which is engaged in any profession, trade or calling. | 2500 per annum |
| 21. | Persons other than those mentioned in any of the preceding entries who are engaged in any profession, trade, calling or employment and in respect of whom anotification is issued under the second proviso to sub-section (2) of section 3 | 2500 per annum |
Note: 1.
Notwithstanding anything contained in this Schedule, where a person is covered by more than one entry of this Schedule, the highest rate of tax specified under any of those entries shall be applicable in his case. This provision shall not be applicable to entry 16(iv) of the schedule.
Note: 2.
For the purposes of Entry 8 of the Schedule, the Profession Tax shall be calculated on the basis of the “turnover of sales or purchases” of the previous year. If there is no previous year for such dealer, the rate of Profession Tax shall be Rs. 2000. The expressions “turnover of sales” or “turnover of purchases” shall have the same meaning as assigned to them, respectively, under the Maharashtra Value Added Tax Act, 2002. ”
Is there any employee limit to deduct profession tax? Like 10 employees or so, or is it applicable for everybody who crosses 5,000 per month?
Plus, if one is a director in a company as well as a partner of a firm, is his tax liability Rs. 5,000 or Rs. 2,500 for the year?
HOW WILL I GET MY NEW PROFESSION TAX NUMBER ?????
PLEASE TELL ME THE PROCEDURE
please advice me the Profession Tax for Pvt. Ltd. Co. A/c. year 2010-11 is there any scheme for 5yrs payment
Dear Sir,
My Company is registered in Maharashtra but Directors residing out of Maharashtra – whether Professional Tax is applicable for Directors or not.
Thanks
Rajesh
We came to know that Ex-defence personnel are excempt from payment of PT (Prof Tax). Is the exemption given in Maharashtra also ?
Is the Old Profession Tax number is Valid?
From where we can Get New Profession Tax Registration number?
Sir, My query is about profession Tax liability in maharashtra is also same at hyderabad, cochin, delhi, kolkatta, bhuvneshwar, bangalore, I am working in a company the Head Office in Mumbai and the salary is paid through mumbai Office for all the branches which is mention above, does Maharashtra PT is applicable to all the above branches employee.
Please advise.
respected sir,
we are registered under the maharashtra government but our employees are working in karnataka so we are deduting and remitting there p.tax in maharashtra , so i want to know that whether it is legally right or wrong..
thank you sir…
Can anyone inform what are the due dates for payment of PT ??
We are dealer of mvat and situated in bhayandar east. We deals in gold and diamond jewellery. Where can we deposit theprofession tax ?
What is the procedure to rectify the excess payment of professional tax ? This has happened in the Maharashtra division
What is the last date of payment of Profession tax for the organisation in Mumbai which has deducted the profession tax of its employees ?
Kindly tell me about the formalities for payment of profession tax
Kindly inform me about the requirement for filling return of profession tax
What is the last date for payment of Profession Tax for the organisation who has deducted the same from employee’s Salary. What is the procedure for payment of Profession Tax which is deducted from the employee’s Salary in Mumbai
I joined a company in July this year. Do I have to pay 2500 as PT or just for the months I work???
payment made monthly to employee as a contractor, my questin is whether profession tax is applicable or not
I am a dentist who is working in college as well as i have started my own dental clinic month before.
I need assistance in filing my professional tax. Please assist.
Required Detail for Thane district.
Thnx for Giving us Important information abt PT ,
Which was difficult to find on the Website too.
But Still i want one more information about New Forms, If any Changed …
Please Send me New PT Forms
Also i had one Client which is trf from mumbai to nashik
& its old PT no not found in the both City List of New PT No.
Pls gudie me how to find out this no, i have old PT No.
Dear Sir,
Whether PT is applicable on Bonus & Leave encashement while calculating F & F for Mumbai & Bangalore
Pls Advise
Our company is enrolled and registered for P.Tax in the state of W.Bengal. They have deducted the P.Tax for the employees located in Maharashtra but have deposited the tax in W.Bengal. Now the P.Tax dept.of Maharashtra is insisting that the payment deducted for the employees of Maharastra be again paid to the Maharashtra State from the beginning. Are we liable to pay P.Tax again. Please advise
Where can you get new numbers. Is old number valid?
My compnay director is an employee of company & also on payroll of Company , Company is registered in Maharashatra under Factory ACT also under Shop & Estabilishment act , we Paid PTAX as a employer PTAX Rs.2500 for fy . Can we deduct PATX from Payroll/ Salary of such employee ? Please reply .
Is a person has to pay tax as a director + employee also.
isthere rebate for prof tax in income tax if yes advice section no
Dear Sir,
Pls suggest me that i am a Semi wholesallers in Cloth Market and running a Proprietary business and No VAT is applicable. My annual T/O does not exceeds 40 Lakhs. Should I Have to pay Professional Tax? If yes than under which Class of Person?
In website of Sales-Tax Department the Profession Tax-New Profession Tax Rate from 1st July-2009 not updated.In this sites the rate of PT shows old. When the site is updated?
we are firm registered in rajasthan
we want to purchase scrap in maharashtra and sell it off in maharashtra itself.
how can i register for sales tax id? are there any other legal formalities/registrations i need to complete? are there any agents that can get this done?
Is there any change in enrolment certificate no. for employers profession tax.
Pls let me know, is there any changes in professional tax no. & if yes the how to find out on net.
whether profeession tax applicable on sales commission
We have opened a branch having its office in Pune having 8 employees and having its technical head office Gurgaon and registered office at New Delhi. We are working as consultants for architects and builders. We make autocad drawings for our clients. Our company is private limited company. Are we required to go for professional tax enrollment? Our all accounting activities are done at Delhi. Our Managing Director and one more director work at New Delhi and Gurgaon respectively. Are we supposed to pay professional tax for both directors or for one director.
Please guide me.
I would like to know a company having a base office in maharashtra and rgistere under profesion Tax Act in Maharashtra and its employees working in various state but salary paid from its base office after deducting PT from employee salary and deposited in Maharashtra.Do you think company required to get registration at various state where its employees is working
what is the professional tax for Rs. 5000 to 10000.and what is if it exceed than 10000
whether profession tax is applicable to day rate labours.
I want to know whether salary is the actual salry paid after taking into account the leaves taken or the gross salary ie the salary as decided on paper
If any employee is applicable for 2500 p/an but in any month he has paid 175 only due to absenteeism shall he pay 2500 per anaum?
hi i am ganpati. i am a lic agent. my agency year from julay2008.my first year’s commission is lumsum 12500/-. so i want to know that do i pay proffessional tax.
thanx
ganpati k jha
(mumbai)
9867770685
I want to know my prof. Tax number in mahrashtra by way of internet site
At what rate corporate have to pay PT. Can they just Pay Rs2500 Or they have to pay based on turnover
sir,
please send me the chart of tax liability for year April 2005 to 2010 of person who running shop in Bomby shop act Lice. area and having no vat number and no employee. if possible publish chart liebility wise rate for year wise from 2005
is service tax applicable for pool game parlour ? If yes how many percent, and is it on d profit or the revenue ?
Hi, my queries regarding Payment of Prof. Tax payable by a company are as follows:
1) Is a Director counted as employee while determining the annual p. Tax Liability of a company? Suppose a Company has one employee & 2 directors, will the company be liable for Rs. 2000/- P. tax or 2500/-
2) In case a company is formed and established in a middle of year say August 2009, Does it have to pay Prof. tax on proportionate basis or for full year of 2009- 2010.
3) Further I assume that Prof. Tax is to be deducted only on salary withdrawn. If a person is appointed director of a company in August but takes salary from October onwards, does he have to pay Prof. Tax for 2 months of August & September?
Kindly respond back as soon as possible.
Hi, this is Binod from Kolkata, i am a salaried person in a private company, presently i am drawing 11,ooo per month with some part time at home from 2000 to 10000, what is my taxable amount, how can i avoid this, how can i pay it, is there any agent who can help me in payment of tax, kindly send all info at [email protected] or call me +91 9883826210. thanks
let us inform the maharastra monthly pT remittance due date pl.
I am a medical doctor and am employed at a hospital which deducts Rs 2500:00 annually towards profession tax from my salary. About a year ago I started my own clinic in addition to my employment. Do I need to pay additional profession tax? I have only one employee. Also, in how much time do I have to obtain a Shops and establishment registration?
Please help.
Indraniog
In Maharashtra,
If, we give sales incentive to our staff he/she get salary from our company.
We are responsible for deduct professional tax from sales incentive.
Is there any resolution passed for amnesty scheme for profession tax in year 2009?
Pls reply
i m an insurance agent in the year 2008 but not now & my total earning is just Rs. 1000. I leave the agency after that.so can i eligible for Profession Tax registration.
pls reply
What does salary means for this purposei.e. only basic salary will b the criteria to see the slab or basic salary + HRA of the employee.
Sir,
If a person is NRI, and he is having income in India by way interest from Bank FDR & renting of residential house, then whether he has to pay profession tax?
From when the new Professional tax is effective? is it from 1-mar or 4-jun or 18-jun?
Has the amendment passed in assmebly?
Thanks