Profession Tax is a State level Tax in India on Professions, Trades, Callings and Employments. The following Indian states levy Profession Tax – West Bengal, Karnataka, Maharashtra, Andhra Pradesh, Gujarat, Tamilnadu and Madhya Pradesh. Profession Tax in Maharashtra In Maharashtra (Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975), Profession Tax is applicable both on Individuals & Organizations (Company, Firm, Proprietary Concern, Hindu Undivided Family (HUF), Society, Club, Association Of Persons, Corporation or any other corporate body in Maharashtra per the provisions of the Maharashtra Professional Tax Act of 1975. Profession Tax For Individuals in Maharashtra Every person residing in Maharashtra engaged in any profession, trade, calling or employment is liable and has to obtain a Certificate of Enrolment from the Profession Tax Authority. Once this certificate is obtained, the person can discharge their individual tax liability for five years by paying lumpsum amount equal to the amount of Profession Tax for four years in advance, getting relief for one year’s payment. Exempted Individuals in Maharashtra The following persons are exempted from the provisions of the Profession Tax Act in Maharashtra : Senior Citizen above 65 years age. Handicapped Person with more than 40 % disability or parent of a physically disabled or mentally retarded child.
Profession Tax For Organizations:- An employer organization is required to get registered under the Profession Tax Act and obtain a Registration Certificateunder which the payment in respect of taxes deducted from employees salaries can be made. Also as a firm, the organization is required to obtain Enrolment Certificate and pay Profession tax on it’s behalf. Periodicity of Returns For employers holding Registration Certificate, the period of returns to be filed on basis of annual tax liability amounts are as follows : Annual Profession Tax Liability = Rs. 5000 but = Rs. 20000 - Monthly Returns. Returns are required to be filed on or before the last date of the month to which the return relates. It should contain details of salaries paid and the amount of tax deducted in respect of the month immediately preceding the month to which the return relates.
Due dates for payment of Profession Tax and for filing the returns in Maharashtra:- For the persons holding Enrolment Certificate - 30th June.
For any delay in the same, interest @ 1.25% per month will be charged.
Bank payment challans to be received by all Enrolment Certificate holders by mid June.
Profession Tax Penalties Delays in obtaining Enrolment or Registration Certificate – Penalty of Rs. 2/= (Rupees Two) per Day. Providing false information regarding enrolment – Penalty of 3 times tax amount. Non-payment of profession tax – Penalty equal to 10% of the amount of tax can be imposed.
Schedule of rates of tax on professions, trades, callings and employments after Budget: Although new rates been passed in budget but they shall come into force on such date as the state Government may, by notification in the Official Gazette, appoint. ((Government of Maharashtra appointed the 1st July 2009 to be the date from which new profession rates will come into force)
Read more: New profession Tax Rates after Maharashtra Government Budget and Provisions http://taxguru.in/goods-and-service-tax/new-profession-tax-rates-after-mahrashtra-government-budget.html#ixzz1hLtEoOtB
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