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Professional tax payments

21 August 2021

Hello sir/madam
I'm a contractor I haven't paid Professional Tax since so many years..... So whether it's compulsory to pay PT.... If yes, from which year should I pay my PT????

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3 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 22 August 2021

Whether you are running any business??

CA. Abhilash Krishnan P (Chartered Accountant) (529 Points)
Replied 22 August 2021

As a contractor you are liable to pay professional tax on behalf of your employees.. please check your respective state regulations for details.. professional tax is a state specific law and you should get registered for it under the state in which you operate..also in some states professional tax is applicable only if your establishment is in the municipal area and also if the salary is more than a limit prescribed as per the state law

given below is the applicability of professional tax in the state of Kerala

Any company which transacts business in the municipal area for not less than sixty days has to pay professional tax.

Any company transacts business outside the limit of the municipal area but has its head office from which its business is controlled within the municipal area for sixty days need to pay PT.

Any person who exercises a profession, art or calling or transacts business or holds any appointment, public or private within the municipal area for not less than sixty days also need to pay professional tax.

Any person who exercises a profession outside the municipal area, but who resides within the municipal area for not less than sixty days is eligible for PT.

Any person transacts business outside the municipal area but has his head office or place from which his business is controlled within the municipal area for not less than sixty days.

Any person resides in the municipal area for not less than sixty days in the aggregate and receives any income from investments, will have to pay a half-yearly tax assessed.

Joshua Dsouza (152 Points)
Replied 22 August 2021

Yea am running a construction business in karnataka ...... I have started it in the year 2000...so when I register from which year should I start to pay PT