profession tax

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This query is : Resolved

Dhara v Gada (Querist)

30 January 2010 Facts of the case:

Mr A is the director of the XYZ Pvt ltd since Sep 2001(tii today). XYZ Pvt Ltd is enrolled under profession tax but Mr A is not enrolled.Mr A is joined ICICi bank in may 2006 and profession tax of rs 2500 is regularly deducted from his salary .He is currently also working in ICICI bank

Queries:
Is Mr A required to enroll under Profession tax Act separately as director?

What are the legal consequences/ liability if Mr A enrolls under Profession Tax Act as director (entry no 5) under the incentive scheme 2009 or under the regular provisions?

The said incentive scheme mentions that the amount paid prior to 31st july 2009 cannot be adjusted towards any sum payable under incentive scheme. what does it exactly mean? Profession Tax of Rs 7100 (Rs 2100 for 2006-07, Rs 2500 for 2007-08, Rs 2500 for 2008-09) has already been deducted from salary. Is Mr A required to pay tax again in capacity of director? Wont it result into double taxation?

kindly throw light into the matter.

Amol Suresh Sinkar

Amol Suresh Sinkar (Expert)

30 January 2010 As Per Profession Tax Under Maharashtra,
a person is only liable under single Schdule Entry. Mr.A is working as a employee of the Bank where the deduction of Rs.2500 has been made while paying the salary to Mr.A. In this case he is not liable twice as a Director & as a employee.
But from salary if only Rs.2000 is deducted then his liability to pay of Rs.500 as a difference. It means maximum of Rs.2500 is liable to pay the Profession Tax.

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