Professional tax on partners and firm in a.p.
This query is : Resolved
01 May 2019
Hi,
My One Client having 3 partnership firm in andhra Pardesh and getting remuneration from all the 3 firm.
Govt. says that Professional Tax on Firm is Rs.2500/-p.a.
and partners liability is Rs.1250/- p.a for each firm and each partner.
Means single person having partner in 3 firm need to pay professional tax 3 times as a partner.
is it correct?
please guide.
My One Client having 3 partnership firm in andhra Pardesh and getting remuneration from all the 3 firm.
Govt. says that Professional Tax on Firm is Rs.2500/-p.a.
and partners liability is Rs.1250/- p.a for each firm and each partner.
Means single person having partner in 3 firm need to pay professional tax 3 times as a partner.
is it correct?
please guide.
10 July 2024
Yes, based on the information provided regarding Professional Tax (PT) in Andhra Pradesh, here’s how the liability typically works for partners in multiple partnership firms:
1. **Professional Tax on Firms**:
- According to the government notification, each partnership firm is liable to pay Rs. 2500/- per annum as Professional Tax.
2. **Professional Tax on Partners**:
- Each partner in a partnership firm is also individually liable to pay Professional Tax. In Andhra Pradesh, the liability for partners is Rs. 1250/- per annum per partner.
3. **Calculation for a Partner in Multiple Firms**:
- If an individual is a partner in multiple partnership firms (e.g., 3 firms), they would be liable to pay Professional Tax individually for each firm where they are a partner.
- Therefore, if your client is a partner in 3 different partnership firms in Andhra Pradesh, they would need to pay Rs. 1250/- as Professional Tax for each firm separately.
- This means that the same individual would have to pay Professional Tax 3 times (once for each firm they are a partner in).
### Example Calculation:
- If your client is a partner in Firm A, Firm B, and Firm C:
- Professional Tax for Firm A: Rs. 1250/-
- Professional Tax for Firm B: Rs. 1250/-
- Professional Tax for Firm C: Rs. 1250/-
- Total Professional Tax payable by the client = Rs. 1250 + Rs. 1250 + Rs. 1250 = Rs. 3750/- per annum.
### Conclusion:
Yes, it is correct that a single person who is a partner in multiple partnership firms in Andhra Pradesh would need to pay Professional Tax separately for each firm they are a partner in. This ensures that each partnership firm and each partner’s liability is accounted for individually under the PT regulations of the state. If your client is unsure about the specific regulations or needs further clarification, it’s advisable to consult with a tax professional or directly with the PT department of Andhra Pradesh for precise guidance tailored to their situation.
1. **Professional Tax on Firms**:
- According to the government notification, each partnership firm is liable to pay Rs. 2500/- per annum as Professional Tax.
2. **Professional Tax on Partners**:
- Each partner in a partnership firm is also individually liable to pay Professional Tax. In Andhra Pradesh, the liability for partners is Rs. 1250/- per annum per partner.
3. **Calculation for a Partner in Multiple Firms**:
- If an individual is a partner in multiple partnership firms (e.g., 3 firms), they would be liable to pay Professional Tax individually for each firm where they are a partner.
- Therefore, if your client is a partner in 3 different partnership firms in Andhra Pradesh, they would need to pay Rs. 1250/- as Professional Tax for each firm separately.
- This means that the same individual would have to pay Professional Tax 3 times (once for each firm they are a partner in).
### Example Calculation:
- If your client is a partner in Firm A, Firm B, and Firm C:
- Professional Tax for Firm A: Rs. 1250/-
- Professional Tax for Firm B: Rs. 1250/-
- Professional Tax for Firm C: Rs. 1250/-
- Total Professional Tax payable by the client = Rs. 1250 + Rs. 1250 + Rs. 1250 = Rs. 3750/- per annum.
### Conclusion:
Yes, it is correct that a single person who is a partner in multiple partnership firms in Andhra Pradesh would need to pay Professional Tax separately for each firm they are a partner in. This ensures that each partnership firm and each partner’s liability is accounted for individually under the PT regulations of the state. If your client is unsure about the specific regulations or needs further clarification, it’s advisable to consult with a tax professional or directly with the PT department of Andhra Pradesh for precise guidance tailored to their situation.
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