Profession Tax – Review of Latest Amendments in Maharashtra

 1)        Profession Tax E-Enrollment-

3rd proviso to Sec 3(2) is inserted from 01.05.2012. Which states that, a person who is liable to pay tax has remained un-enrolled; then, his liability to pay tax under this section for the periods for which he has remained so un­enrolled shall not exceed eight years from the end of the year immediately preceding the year in which he has obtained the enrollment certificate or the year in which the proceeding for enrollment is initiated against him, whichever is earlier.

2)        Rate of Interest –

Under composition scheme of Profession Tax interest is Rs. 200/- p.m , where as in normal case interest upto 30.06.04 – 2 % p.m, From 01.07.04 – 1.25 % p.m

3)        E Return-

Filing of E Return for Employer is made mandatory with effect from 01-Aug­2011 in form IIIB Form (As per Trade Circular 1T 2012).

4)        New number-

Employers Registered before 22^nd July 2007 having old PTRC number can get New PT number automatically by e-enrolling on mahavat.gov.in. Those who are registered from 22.07.07 has already been granted new PTRC number

5) Multiple Place of business Registration-

If dealer is having multiple place of business following in different jurisdiction of Sales Tax Office , will have to get PTRC number for each such Premises/Branch/Place. That is if place of business is following in same jurisdiction then only one PTRC number should be taken.

6)      Requirement of TAN-

For obtaining Registration Certificate (PTRC), For Principal place of business within the state of Maharashtra mentioning of TAN is optional. However if employer is applying for Registration Certificates for places other than his principal place of business in the state of Maharashtra , then he should also enter TAN number of that other location for which he is making an application.

(Trade Circular 5 T of 2012)

7)      Exemption from E Registration-

E Registration is mandatory for all person except for holders of Permit for transport vehicle covered under Entry No.13 of Schedule I of Profession Tax Act granted under the motor vehicles Act 1988. Such Person should directly approach the concerned RTO for Enrollment certificate.

8)      E-Payment-

With effect from 01-July-2012 every employer holding Profession Tax Registration Certificate (PTRC) shall pay Tax, Interest, Penalty or any amount due and payable by or under the said act electronically.

(Notification Dated 14-06-20 12)

9)   Assessment-

a)     Where all the returns are filed by the employer for any year starting on or after the 1^st April 2004 within one month from the end of the year to which such returns relate, no order of assessment under the provisos to sub-section (2) in respect of that year shall be made after the expiry of three years from the end of the said year; and if for any reason such order is not made within the period aforesaid, then the returns so filed shall be deemed to have been accepted as correct and complete for assessing the tax due from such employer If return are not filed within time then time limit for assessment is 8 yrs.

b)     In case of returns pertaining to the years on or before the 31^st March 2004, and filed on or before the 30^th September 2004, no order of assessment shall be made under the provisos to sub-section (2) on or after the 1^st April 2007.

10) Return Periodicity for Employers-

Previous year Tax Payment < Rs.50000/-                    Annually

Previous year Tax Payment > Rs.50000/-                    Monthly

New Registration                                                         Monthly