Summary: In West Bengal, professional tax is levied by the state government as per Article 276 of the Indian Constitution, which allows states to impose taxes on professions, trades, and employment. It is deductible under the Income-tax Act of 1961 and has a cap of Rs. 2,500. Employees, professionals, and various business entities are required to pay professional tax, while certain individuals, such as senior citizens and those with disabilities, are exempt. The registration process involves logging onto the West Bengal commercial tax portal, selecting the appropriate entity type, and providing necessary details such as PAN number, business information, and bank details. After completing the online application and payment, users receive an acknowledgment and a unique enrollment number, which they can use to generate a registration certificate or request amendments. Accurate and timely registration is crucial to comply with state regulations and avoid penalties.
According to Article 246 of the Constitution of India, Parliament exclusively holds the power to enact laws concerning the Union List, which includes taxes on income. The State, however, can legislate on matters listed in the Concurrent and State Lists. Professional tax, though considered a tax on income levied by state governments (not uniformly across all states), falls under the ambit of Article 276 of the Constitution of India. This article pertains to taxes on professions, trades, callings, and employments, empowering state governments to legislate on professional tax.
It’s important to note that professional tax is deductible under the Income-tax Act, 1961, reducing taxable income. Additionally, Article 276 of the Constitution imposes a maximum cap of Rs. 2,500 on professional tax, ensuring it cannot exceed this amount for any individual.
Who will pay Professional Tax
1. In the case of employees, an employer is a person responsible for deducting and paying professional tax to the state government subject to the monetary threshold.
2. Professional viz CA, CS, CMA, Lawyer, doctors, Engineers, Freelancer.
3. Partnership firm, Sole proprietor, LLP, Private company, Public Company, AOP,BOI, HUF etc.
Exemptions in Professional Tax
Even though everyone who earns a regular income (salary) is expected to pay the professional tax, some people are exempt. As a result, if you fall into one of the categories listed below, you are exempt from paying professional tax.
1. Member of Force (Governed by Army, Air Force, Navy Act)
2. An individual suffering from mental or physical disability. Disability can be blindness, deafness, etc.
3. Parent of a child suffering from a disability
4. Charitable hospitals are present in places that come below the taluk level
5. Badli workers (temporary workers that are employed in a factory)
6. Individuals running an educational institute in respect of their branches teaching classes upto 12th standard or pre-university.
7. A foreign individual who has been employed by the relevant state
8. Any individual above 65 years
9. Women who are solely engaged as agents under the Government’s Mahila Pradhan Kshetriya Bachat Yojana
Registration Process under Profession Tax in West Bengal
Step 1. Log on to egov.wbcomtax.gov.in and click on apply online button.
Step 2. Click on First time login then continue
Step 3. Choose one of then in the following options
1. INDIVIDUAL including Proprietary Concern
2. HUF (Hindu Undivided Family)
3. FIRM including PARTNERSHIP FIRMS and LLPs
4. COMPANY registered under R.O.C. and BANKING COMPANIES
5. CORPORATION or OTHER CORPORATE BODIES
6. SOCIETY
7. CLUB
8. ASSOCIATION
Step 4. Tick the classes belong to , if choose company from the above options-
4(a). Estate agents or promoters or brokers or commission agents or del credere agents or mercantile agents.
4(b). Stevedores, clearing agents, customs agents, licensed shipping brokers or licensed boat suppliers.
4(c). Occupier of a jute mill, or shipper of jute , as defined in the West Bengal Sales Tax Act, 1994 (West Ben Act XLIX of 1994) or the West Bengal Value Added Tax Act, 2003 ( West Ben. Act XXVII of 2003).
4(d). Occupiers, owners, lessees or licensees of rice mills.
4(e). Owners or lessees of petrol/diesel/gas filling stations and service stations and agents or distributors thereof including retail dealers of liquified petroleum gas.
4(f). Owners or occupiers of distilleries, breweries and bottling plants.
4(g). Licensed vendors of foreign liquor.
4(h). Owners, licencees or lessees of premises let out for social functions.
4(i). Air-conditioned beauty parlours or spa.
4(j). Resorts, gym, slimming centres, and wellness centres of all; types and descriptions.
4(k). Air-conditioned hair dressing saloons.
4(l). Air-conditioned restaurants.
4(m). Licensed money lenders under the Bengal Money Lender Act, 1940 (Ben. Act X of 1940).
4(n). Individuals or institutions conducting chit funds and lotteries and authorised stockists of lottery tickets.
4(o). Banking companies as defined in the Banking Regulation Act,1949 (10 of 1949).
4(p). Companies registered under the Companies Act, 1956(1 of 1956) or the Companies Act, 2013 (18 of 2013).
4(q). Persons providing services in relation to the security of any property or person, by providing security personnel or otherwise and including the provision of services in relation to investigation, detection or verification of any fact or activity.
4(r). Bookmaker and trainers licensed by Royal Calcutta Turf Club or any other Turf Club in the State.
4(s). Owners or occupiers or licencees or lessees of nursing homes, pathological laboratories including diagnostic centres
Step 5. Details of the followings-
- Name of the applicant
- Gender
- Father husband Name
- Legal Name/enter as per PAN card
- Business Name
- Address of Principal Place of Work
- Mobile no- otp
- PAN No.
- Date of commencement of profession and trade
- Bank details- bank name/Branch name/ IFSC/Account no/Account type.
Step.6 Then click on continue , application no will be generated.
Step 7. Enter Gross Turnover/ Gross Receipt previous year.
Step 8. Enter Trade Name and Types of Trade.
Step 9. Auto calculate the P.tax.
Step 10. Grips payment details
Step 11. Acknowledgement no for the first time will be generated.
Step 12. Click on Signup for new user on dashboard of https://egov.wbcomtax.gov.in.
Step 13. Enter – 1. Application No 2. Mobile no. 3. PAN 4. Password.
Step 14. ENROLLMENT No will be generated.
Step 15. Click on “To get registration no click here”
Step 16. User id will be application no and enter password then click on login.
Step 17. Then we get option of
1. Generate Certificate -Enrollment/Registration
2. Request for amendment
3. Request for surrender
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