one of my client which is a proprietorship ( manufacturing industry)' having more than 50 employee is not registered for professional tax till now but he is deducting the pt from this year. the proprietorship started long back ago say some 2001 from that time onwards he not yet registered with the pt but he registered under PF in 2007 & VAT in 2006 what will the penalty and interest for this situation. and client office is located in Karnataka. now he is willing to do registration for PT please help me to come out of this situation
27 November 2014
There are two types of PT registration. One is PTEC ( For Own ) and other is PTRC (For Employees). Your query is about PTRC. This tax fall under the control of State Govt., Therefore there are different rules and regulation in each state for the same. When the assessee is required to get registered but not registered the officer may come out with liability from the beginning of the business plus interest plus penalty. Officer may waive off the penalty at his discretion. Will like to add one thing here, before coming notice from the authorities , take step ahead for registration. Before registration we are not allowed to collect the tax- it becomes illegal. For reference go with the below link – http://pt.kar.nic.in/Downlods/PT_Simplified.pdf ( Will not clear whole things but will make some guide).
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