Taxation

Understanding Meghalaya Professional Tax Registration

Professional tax is levied on the income of individuals from salary by employer, practicing profession like CA , CS , Lawyers etc. in this article we will be discussing the different aspects of Meghalaya professional tax registration.

What is Meghalaya Professional Tax?

Article 246 of the Indian Constitution empowers the state to make rules & regulations with respect to professional tax in Meghalaya. The professional tax is governed by the Meghalaya Professions, Trades, Callings and Employments Taxation Act, 1947^[1].

The maximum of Rs. 2500 annually can be levied as a professional tax in Meghalaya.

Reason for implementing professional tax in Meghalaya

The professional tax collected by the state government will be used to ensure the utilization of investments for the development of public infrastructure.

The concerned authority must collect revenues for the betterment of the state & for the administrator’s development.

What are the documents required for the professional tax registration in Meghalaya?

The documents required for professional tax registration in Meghalaya are:

• Incorporation documents, i.e., MoA, AoA & Certificate of incorporation;
• PAN Card;
• Lease agreement (if the property is rented);
• Copy of the Trade License;
• Certificate of Shop & Establishment (S&E)

Need for registration

All companies must have two certificates, i.e.,

• Professional Tax Registration Certificate (PTRC), and
• Professional Tax Enrollment Certificate.

These certificates are to be obtained within 30 days from the date of enrolling into the system. The employers who possess the certificate are responsible for penalising for non – deposit of the professional tax of their employees.

However, the foreign employees, foreign diplomatic office, embassy or consulate are exempted from this provision.

Registration for professional tax in Odisha

The registration process in the state of Meghalaya is completely offline. One can register by making an application to the concerned government authority. There is no specified procedure to be followed, notified by the Government.

What is the tax slab rate for professional tax registration in Meghalaya?

The professional tax in Meghalaya is determined based on the monthly salary or income of an individual.

The tax slab rates for Meghalaya professional tax are:

S. No.	Monthly Salary	Professional Taxable Amount
1	Up to Rs. 4166	Exempted
2	Between Rs. 4167 & Rs. 6250	Rs. 16.50 per month
3	Between Rs. 6251 & Rs. 8333	Rs. 25 per month
4	Between Rs. 8333 & Rs. 12,500	Rs. 41.50 per month
5	Between Rs. 12,501 & Rs. 16,666	Rs. 62.50 per month
6	Between Rs. 16,667 & Rs. 20,833	Rs. 83.33 per month
7	Between Rs. 20,834 & Rs. 25,000	Rs. 104.16 per month
8	Between Rs. 25,001 & Rs. 29,166	Rs. 125 per month
9	Between Rs. 29,167 & Rs. 33,333	Rs. 150 per month
10	Between Rs. 33,334 & Rs. 37,500	Rs. 175 per month
11	Between Rs. 37,500 & Rs. 41,666	Rs. 200 per month
12	Above Rs. 41,666	Rs. 208 per month

What is the penalty imposed in case of Meghalaya professional tax registration?

In case where the professional tax payment is delayed, a penalty of 2% for every month till the default & the penalty will be increased to 10% in case of non – payment of the professional tax.

The delay in obtaining an enrollment certificate, will impose a penalty of 3 times of the actual liability.

Conclusion

It is evident from the article that there is no set procedure for Meghalaya professional tax registration, and the registration in Meghalaya is done offline and is governed by Meghalaya Professions, Trades, Callings and Employments Taxation Act, 1947.

Read our article: All about Assam Professional Tax Registration