Taxation

All about Assam Professional Tax Registration

Assam Professional tax is levied & collected by the local municipal authorities in India (such as Panchayat, Municipalities, etc.). Professional Tax is being handled by the revenue department of the local self-government. In this article, we will study all about Assam professional tax registration in depth.

What is Assam professional tax?

The Government levies Assam professional tax on the individuals working in the government or non-government organizations, or salaried persons or professionals like CA, Lawyers, Doctors, etc.

The regulations related to the it are applicable under Article 276 clause (2) of the Indian Constitution^[1].

The professional tax rates vary from one state to another, but the amount for professional tax must not exceed Rs. 2500.

The professional tax slab in Assam is in the tabular form below

Monthly Salary	Amount Payable per Month
Less than  Rs. 10,000	Nil
Rs. 10,001 to Rs. 15,000	Rs. 150
Rs. 15,001 to Rs. 24,999	Rs. 180
More than Rs. 25,000	Rs. 208

Who are eligible for paying Assam professional tax?

The business owners are responsible for deducting the employees’ salaries and deposit the amount to the relevant government department. The tax may be paid monthly, quarterly, or annually, based on the business nature.

The professional tax return must be filed to the tax department in a prescribed form within a specified time at the end of every financial year.

The proof of tax payment is necessary, as, without it, the application will be considered incomplete or invalid.

Professional tax to be collected must not exceed Rs. 2500 per annum for any state. However, it is not imposed by all states. The states where professional tax is imposed on people are:

• Chhattisgarh
• Tamil Nadu
• Karnataka
• Madhya Pradesh
• Gujarat
• West Bengal
• Sikkim
• Andhra Pradesh
• Bihar
• Odisha
• Tripura
• Kerala
• Meghalaya
• Assam
• Telangana
• Maharashtra.

Who is exempted from paying Assam professional tax?

The following are exempted from paying professional tax:

• Foreign employees;
• Indians employed by the foreign office; and
• Consultants.

What are the documents required for Assam professional tax?

The following documents are needed for Professional Tax registration:

• Acknowledgment of the online form;
• PAN Card copy;
• Residence proof of director, partner, proprietor;
• Incorporation certificate of the company;
• Proof of address of the place of business;
• Establishment certificate;
• PAN & PTEC details; and
• A canceled cheque for the bank details.

All the documents mentioned above must be self-attested.

What is the process of Assam professional tax registration?

The person, who has started his profession or business, will be liable to pay the professional tax. He has to register himself with the relevant department within 30 days of starting the profession.

The process of registration of Assam professional tax is:

• Log in to the official website of Assam.
• Click on e-services tab and then click on online registration.
• The taxpayer has to select ‘professional tax’ from a list of Acts.
• Then select the appropriate district & the location and submit it.
• After clicking on submit, the application forms appear.
• Enter the required details and submit.
• An acknowledgment number will be generated after the submission of the application form.
• You can print the receipt of the acknowledgment form.

After the submission of application form, the administration process starts.

Step 1

After submitting the application form, the registration request is sent to the concerned person, i.e., Assistant Commissioner of Taxes or the Superintendent of Taxes Incharge.

Step 2

The concerned officer reviews the application and verifies the details, and processes the application.

Step 3

The processing of application includes order enquiry, order security hearing for new registration. The concerned officer may directly choose the option of final approval of the registration.

Step 4

After the completion of the above process, the registration number is generated.

Calculation of Assam profession tax

Professional tax payable is calculated on the basis of the gross salary and tax slab prescribed by the Government.

What is the penalty in the case of Assam Professional Tax?

Professional tax is required to be paid within the prescribed time. The due date for the tax to be paid is mentioned in the respective state Acts. In case of failure to pay the tax, the Government will penalize the defaulter. The penalty imposed in case of:

• Breach of rules-2% per month
• Non – payment – 10% of additional payment.
• Delay in obtaining the certificate – Rs. 2 per day for self – employed person and Rs. 5 for an employer.
• Misrepresentation – 3 times the amount due.
• Delay in filing returns – Rs. 1000 if the return is filed within a month after the due date, and if it is not paid then Rs. 2000.

Conclusion

The Government levies Assam professional tax on the individuals working in the government or non-government organizations, or salaried persons or professionals like CA, Lawyers, Doctors, etc.

The process and the eligibility to register for professional tax in Assam are explained in the article above. Businesses in Assam must register them under the professional tax, allowing the Government to collect the tax and increase the revenue.

Read our article:All about Kerala Professional Tax Registration