Anjali (CS) 11 March 2013
I have just recieved a notice regarding non payment of tax by our companies registered in west bengal under the west bengal state tax on professions trades callings and employments act 1979 since incorpaoration. In respect of the same can you please guide me on the following;-
Please guide me on the same. This is an urgent matter.
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CA Shree Jain (Chartered Accountant) 11 March 2013
Many Companies received same notice with Interest Amount also.
Applicability - Levy and charge of tax.--(1) Subject to the provisions of article 276 of the Constitution of
India, there shall be levied and collected a tax on professions, trades, callings and employments,
in accordance with the provisions of this Act.
(2) Every person engaged in any profession, trade, calling or employment and falling under
one or the other of the classes mentioned in the second column of the Schedule shall be liable to
pay to the State Government tax at the rate mentioned against the class of such persons in the
third column of the said Schedule:
Provided that entry 23 in the Schedule shall apply only to such classes of persons as may be
specified by the State Government by notification from time to time.
Employers' liability to deduct and pay tax on behalf of employees.-The tax payable under this
Act by any person earning a salary or wage shall be deducted by his employer from the salary or wage
payable to such person, before such salary or wage is paid to him, and such employer shall, irrespective
of whether such deduction has been' made or not when the salary or wage is paid to such persons, be
liable to pay tax on behalf of all such persons:
Provided that if the employer is an officer of Government, the State Government may,
notwithstanding anything contained in this Act, prescribe by rules the manner in which the employer
shall discharge the said liability:
Provided further that where any person earning a salary or wage
(a) is also covered by one or more entries other than entry 1 in the Schedule and the rate of
tax under such entry or any of such entries is higher than that in entry 1, or
(b) is simultaneously engaged in employment of more than one employer,
and such person furnishes to his employer or employers a certificate in the prescribed form
declaring, inter alia, that he shall obtain a certificate of enrolment under sub-section (2) of
section 5 and pay the tax himself, then the employer or employers of such person shall not
deduct the tax from the salary or wage payable to such person and such employer or
employers, as the case may be, shall not be liable to pay tax on behalf of such person
CA Shree Jain (Chartered Accountant) 11 March 2013
Profession Tax in West Bengal
The West Bengal State Tax on Professions, Trades, Callings and Employment Act, 1979 (commonly know as Profession Tax Act) came into force with effect from 1.4.1979 with the object of levying tax on professions, trades, callings and employments.
Every person, who is engaged in any profession, trade, calling or employment and falling under any one or more of the entries enumerated in the Schedule appended to the Act, is liable to pay Profession Tax. The Schedule now contains 23 entries. Entry at serial No. 1 applies to salary or wage earners, while entries at serial numbers 2 to 23 relate to persons engaged in different professions, trades and callings.
TYPES OF TAXPAYERS
There are basically two types of taxpayers, viz.,
In case of employees liable to pay tax under entry at serial number 1 of the Schedule, the employer is liable to pay tax on behalf of his employees after deduction of tax from the salary or wages paid to the employees at the time of disbursement.
A self-employed person, on the other hand, will pay tax himself.
For payment of tax, an employer will have to obtain a ‘Certificate of Registration’ while a self-employed person will have to obtain a ‘Certificate of Enrolment’ from the appropriate Profession Tax Officer.
HOW TO APPLY FOR REGISTRATION/ ENROLMENT
An application for registration has to be made by an employer in Form I to the Profession Tax Officer having jurisdiction over the employer’s place of work.
Similarly a self-employed person who is covered by one or more entries in the schedule shall apply for enrolment in Form-II before the appropriate Profession Tax Officer.
The person who is liable to obtain a certificate of enrolment, shall pay in the Bank/Treasury, the tax payable by him under the Act on Profession Tax challan and apply for a certificate of enrolment in Form II as referred to above to the Profession Tax Officer along with a receipted copy of challan as proof of payment of tax. Application for new enrolment may also be filed through the current website.
Both the applications in Form I or Form II should be filed within 90 days from the date of accrual of liability.
The registration certificate or the enrolment certificate will be issued by the Profession Tax Officer in Form IA or IIA respectively.
A Government Department, however, need not apply for a certificate of registration.
HOW AND WHEN TO PAY TAX
Registered employers are required to file returns with receipted challan showing payment of tax. In respect of such employers with annual tax liability up to Rupees three thousand, the return period is quarterly. Such employers shall furnish quarterly return within 30 days of expiry of each quarter and pay tax before filing such return. Other employers having annual tax liability exceeding Rupees three thousand shall furnish quarterly returns within 30 days of expiry of each quarter and make monthly payment of tax within 21 days of the next month in respect of the first two months of each quarter.
Tax is to be deposited in the specified Banks/ Treasury. Challans shall be in quadruplicate of which two receipted copies will be returned by the Bank/ Treasury to the taxpayer, out of which one copy has to be submitted by him to the Profession Tax Office.
Enrolled persons are required to pay the tax only once in a financial year, ordinarily, within 31st July of the year.
A copy of receipted challan showing such payment along with an appendage in Form IX shall be submited by the enrolled person to the appropriate Profession Tax Office.
PAYMENT OF INTEREST
If an employer or enrolled person fails to pay tax as required under the law, he will be liable to pay simple interest @ 2% per month or part thereof on the amount due up to 31.3.2002 and the rate of the same is @ 1% with effect from 1.4.2002.
For registered employers with annual tax liability up to Rupees three thousand, the return period is quarterly. Such employers shall furnish quarterly return within 30 days of expiry of each quarter and pay tax before filing such return. Other employers having annual tax liability exceeding Rupees three thousand shall furnish quarterly returns within 30 days of expiry of each quarter and make monthly payment of tax within 21 days of the next month in respect of the first two months of each quarter.
Assessments are made, ordinarily, for each year separately by the appropriate Profession Tax Officer in respect of registered employers to check the correctness of the returns filed by the employees.
In respect of registered employers with annual tax liability up to Rupees three thousand, assessments are made on the basis of selection for the years commencing from 1st April 1996.
The Profession Tax Act provides for imposition of penalty in different cases.
Some of such cases are: -
Wilful failure to apply for registration/enrolment within time.
Deliberately giving false information in the application for registration/enrolment.
Failure to pay tax within time.
Failure to file return within time.
Failure to pay tax within time fixed in a notice of demand.
Wilful failure to maintain books of accounts and records.
In respect of certain offences, the law on Profession Tax in West Bengal provides for prosecution. Such offences are:
Failure to furnish return by a registered employer.
Failure to pay tax by an enrolled person.
Furnishing incorrect information in a return.
Furnishing incorrect information in an appendage in Form IX.
Failure to produce and explain records and books of accounts for inspection as required by an authority under the law.
Negligence or refusal to provide information as required under the law.
Such offences are cognizable and bailable. They are punishable with simple imprisonment or fine or both.
CLASS OF PERSONS LIABLE TO PAY TAX
The Schedule which is appended to the Profession Tax Act, specifies the class of persons liable to pay tax and the rate of tax applicable in each case.
For further details in respect of Profession Tax, the following officer may please be contacted: -
Public Information Officer,
Directorate of Commercial Taxes,
14, Beliaghata Road, Calcutta-700015,
(Room No. 511/III)
Phone: 2251-6784 (Extn. 507
Sandeep Chakroborty (accountant) 18 June 2014
shopkeeper started its business on august'2011 had a turnover of rs 6,87,000 in the a.y.2012-13 & 7,11,000 in a.y.2013-14. what will be the calculation of professional tax if he wants to go for new enrolement in june 2014 in west bengal ? what will be the tax, interest & penalty specifically. Please let me know.