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Profession tax

484 views 5 replies

Poonam

CS Mcom CA FINAL

512 Points Joined September 2009

Hello,

I need a small help, whether a company needs to pay profession tax even if it has no business or any activity since 2004???

As per my knowledge Companies registered under the Companies Act, 1956 and engaged in any profession, trade or calling have to pay Profession Tax of Rs.2500 p.a but i am not sure whether the company need to pay profession tax when the activities are completely shut down.

Can any body pls clear me with the Profession Tax provisions...

Thanks in advance for your help,

Poonam

Replies (5)

Vandana J Doshi

Practising Company Secretary

12562 Points Joined May 2011

Yes Poonam...a Company regd under the Companies Act is required to pay profession tax....the same is also applicable for the Directors of the Company...

Poonam

CS Mcom CA FINAL

512 Points Joined September 2009

thanks for ur reply mam...

but i wanna know whether the compnay need to pay profession tax if its completely shut down unit?????

NILESH PRABHAKAR BUTTE

ARTICLE ASSISTANT

102 Points Joined July 2011

Till winding up procedure is not complete company is supposed to pay profession tax

Poonam

CS Mcom CA FINAL

512 Points Joined September 2009

thanks Nilesh sir

Vandana J Doshi

Practising Company Secretary

12562 Points Joined May 2011

Yes Poonam...unless the company is wound up or striked off, i.e. it no longer exist, the Company is bound to pay profession tax...once it is dissolved, it can apply to the profession tax department for getting the license revoked....till then, whether the company is carying on any business or has completely shut down is unit, does'nt matter.....hope your query is resolved...