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Are NGOs required to pay professional tax?

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Jayesh

Proprietor

141 Points Posted on 23 June 2023

Hello members,

I am not able to find accurate information from online sources on this question. Please help.

Are NGOs required to pay professional tax in Maharashtra? It is an NGO registered as a Section-8 company and has no employees.

Thanks.

Replies (3)

Quick Summary

This discussion explores whether NGOs, specifically Section-8 companies in Maharashtra with no employees, are liable for professional tax. While initial advice suggests exemption due to the lack of employees, participants are seeking definitive legal backing, such as specific tax laws, directives, or judgments, to confirm the exemption status for NGOs.

B Durga Prasad

Student

175 Points Posted on 23 June 2023

In Maharashtra, professional tax is levied on individuals and entities engaged in employment or carrying out professions, trades, or callings. Professional tax is typically based on the number of employees and their salaries. Since the NGO you mentioned is registered as a Section-8 company and has no employees, it is unlikely to be subject to professional tax in Maharashtra.

To learn more about GST on NGO, Charitable Religious Trust click here
For more detailed information, visit Swipe Blog.

Jayesh

Proprietor

141 Points Posted on 24 June 2023

Thank you Prasad. What you mentioned makes sense but if someone can point to specific tax law, directive or judgement, it will be more helpful - it will be much more definitive.

The specific MH Govt Act/Rule regarding professional tax and exemptions - does not say anything about NGOs.