Professional Tax ................

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Goongan (Querist)
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23 February 2010 There is Professional Tax Deducted from employees salary. I am new in this area. Can any give me basic concept about professional tax.

CA SIDHARTH HIRALAL PATNI

CA SIDHARTH HIRALAL PATNI (Expert)
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23 February 2010 Profession Tax as its name suggest is the Tax on profession in ur case it is tax on employment. There is a criteria given in the act on which tax is to be deducted. you can visit www.mahavat.gov.in for more details

CA Umesh Sharma

CA Umesh Sharma (Expert)
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24 February 2010 Introduction of Profession Tax Act:

The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 ( Profession Tax Act) is enacted by State Government under the powers of Articles 276 of Constitution, for levy and collection of Profession Tax in State of Maharashtra.

Profession Tax Act is administered by the Local Sales Tax Department. It is a separate enactment, which have no co-relation with Maharashtra Value Added Tax Act.

Profession Tax is applicable to State of Maharashtra and contains 30 Sections, 33 Rules and Schedules of Rate of Tax. There are numbers of Circulars, Notification issued time to time by the Sales Tax Department for the governance of the Act.

Profession Tax Registration:

Under Profession Tax Act there are two type of Registration:
1) For the Person as an Employer for deduction of tax of Employees.
2) For the Person himself.

A person (Employer) liable to deduct tax shall get registration certificate (RC) and every person liable to pay tax shall get a certificate of Enrollment certificate (EC).

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