{"id":49132,"date":"2021-04-17T11:58:52","date_gmt":"2021-04-17T06:28:52","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=49132"},"modified":"2023-06-29T16:29:41","modified_gmt":"2023-06-29T10:59:41","slug":"gujarat-professional-tax","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/gujarat-professional-tax\/","title":{"rendered":"All about Gujarat Professional Tax Registration"},"content":{"rendered":"<p>Gujarat <a href=\"https:\/\/enterslice.com\/professional-tax\">Professional tax<\/a> is levied by the local municipal authorities on the professionals, and individuals who earn through a profession, employment, or business.<\/p>\n\n\n\n<p>Article 276 clause (2) of the Indian constitution gives the State Government the right to collect professional tax that cannot exceed Rs. 2500 annually on any taxpayer.<\/p>\n\n\n\n<p>In this article, we will look into the details related to professional tax, the process to collect, and the payment mode.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is Gujarat professional tax?<\/h2>\n\n\n\n<p>Professional tax is levied on people who carry out professional trade in India and the employees. The maximum amount that a municipal authority can levy and collect is Rs. 2500 annually on any taxpayer. The amount paid as a professional tax will be deposited to the concerned state government. The amount paid annually as professional tax qualifies for deduction under the <strong>Income Tax Act, 1961<\/strong><sup><a href=\"https:\/\/www.incometaxindia.gov.in\/pages\/acts\/income-tax-act.aspx\"><strong>[1]<\/strong><\/a><\/sup>.<\/p>\n\n\n\n<p>When a person is starting a new business, then some professional tax points are to be kept in mind.<\/p>\n\n\n\n<p><strong><em>These are:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>The registration application must be submitted within 30 days to the tax department of the concerned state.<\/li>\n\n\n\n<li>All the staff members appointed must be registered within 30 days of appointment.<\/li>\n\n\n\n<li>In the case of more than one business owner, the registration must be done separately with the concerned state department.<\/li>\n\n\n\n<li>All the documents required for registration for professional tax in Gujarat must be submitted.<\/li>\n<\/ul>\n\n\n\n<p>The payment of professional tax depends upon the salary and income of an individual and the state&rsquo;s tax slab rates. The tax is deducted from the employee&rsquo;s salary or income by the company&rsquo;s owner or business.<\/p>\n\n\n\n<p>In case when the employer has more than 20 employees, then the payment of professional tax must be made within 15 days from a month-end. However, if the employees are less than 20, then the payment can be made on a quarterly <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Registration of professional tax<\/h2>\n\n\n\n<p>The taxpayer has to apply for registration within 30 days to the concerned state department for the registration certificate. Separate applications must be made in case of the individual has more than one business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The documents required for professional tax registration are:<\/h2>\n\n\n\n<p><strong><em>The documents required for professional tax registration in Gujarat are:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Certificate of incorporation as proof of commencement of business;<\/li>\n\n\n\n<li>Details of employees and salary paid;<\/li>\n\n\n\n<li>Address proof; and<\/li>\n\n\n\n<li><a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Accounting&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Accounting is the language of business, serving as the backbone of financial management and decision-making. It involves the systematic recording, analysis, and reporting of financial(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/accounting\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Accounting<\/a> records.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is the tax slab rate for professional tax?<\/h2>\n\n\n\n<p>The state government sets the tax slab rate. It varies from state to state.<\/p>\n\n\n\n<p><strong><em>The tax slab rate for professional tax in Gujarat is in the table below.<\/em><\/strong><\/p>\n\n\n\n<table>\n<tbody>\n<tr>\n<td width=\"204\">\n<p><strong>Monthly Income of Taxpayer<\/strong><\/p>\n<\/td>\n<td width=\"156\">\n<p><strong>Professional Tax Amount Payable<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"204\">\n<p>Employees earning upto Rs. 5,999<\/p>\n<\/td>\n<td width=\"156\">\n<p>Nil<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"204\">\n<p>Employees earning between Rs. 6,000 to Rs. 8,999<\/p>\n<\/td>\n<td width=\"156\">\n<p>Rs. 80<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"204\">\n<p>Employees earning between Rs. 9,000 to Rs. 11,999<\/p>\n<\/td>\n<td width=\"156\">\n<p>Rs. 150<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"204\">\n<p>Employees earning more than Rs. 12,000<\/p>\n<\/td>\n<td width=\"156\">\n<p>Rs. 200<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<p><strong>Professional tax rate for Individuals &amp; Firms<\/strong><\/p>\n\n\n\n<p><strong><em>The tax slab rate for professional tax in Gujarat for individuals &amp; firms is in the table below.<\/em><\/strong><\/p>\n\n\n\n<table>\n<tbody>\n<tr>\n<td width=\"60\">\n<p>S.No.<\/p>\n<\/td>\n<td width=\"258\">\n<p>Individuals \/ Firms<\/p>\n<\/td>\n<td width=\"168\">\n<p>Annual Rate of Professional Tax<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"60\">\n<p>1<\/p>\n<\/td>\n<td width=\"258\">\n<p>Advocates, solicitors, notary, Doctors, Engineers, Architects, Chartered Accountants, Brokers, contractors, agents, Health &amp; recreation club, etc. and all types of professionals as per the Finance Department notification dated &ndash; 1\/4\/2008.<\/p>\n<\/td>\n<td width=\"168\">\n<p>Rs. 2000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"60\">\n<p>2<\/p>\n<\/td>\n<td width=\"258\">\n<p>Owners of all private &amp; public companies, banking companies, factory, etc.<\/p>\n<\/td>\n<td width=\"168\">\n<p>Rs. 2000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"60\">\n<p>3<\/p>\n<\/td>\n<td width=\"258\">\n<p>Individuals or professionals paying tax separately in more than one branch<\/p>\n<\/td>\n<td width=\"168\">\n<p>Rs. 2000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"60\">\n<p>4<\/p>\n<\/td>\n<td width=\"258\">\n<p>The registered dealers having annual turnover:<\/p>\n<\/td>\n<td width=\"168\">\n<p>&nbsp;<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"60\">\n<p>&nbsp;<\/p>\n<\/td>\n<td width=\"258\">\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not exceeding Rs. 2,50,000<\/p>\n<\/td>\n<td width=\"168\">\n<p>Nil<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"60\">\n<p>&nbsp;<\/p>\n<\/td>\n<td width=\"258\">\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In between Rs. 2,50,000 and Rs. 5,00,000<\/p>\n<\/td>\n<td width=\"168\">\n<p>Rs. 500<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"60\">\n<p>&nbsp;<\/p>\n<\/td>\n<td width=\"258\">\n<p>&nbsp;&nbsp;&nbsp; iii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In between Rs. 5,00,000 and Rs. 10,00,000<\/p>\n<\/td>\n<td width=\"168\">\n<p>Rs. 1250<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"60\">\n<p>&nbsp;<\/p>\n<\/td>\n<td width=\"258\">\n<p>&nbsp;&nbsp; iv.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; More than Rs. 10,00,000<\/p>\n<\/td>\n<td width=\"168\">\n<p>Rs. 2400<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\">What is the application procedure for Gujarat professional tax?<\/h2>\n\n\n\n<p><strong><em>The steps for online registration of professional tax in Gujarat are:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Visit the web portal of the commercial department of Gujarat (<a href=\"http:\/\/www.commercialtax.gujarat.gov.in\">www.commercialtax.gujarat.gov.in<\/a>).<\/li>\n\n\n\n<li>Then click on the type of professional tax from the left menu.<\/li>\n\n\n\n<li>Login using the credentials.<\/li>\n\n\n\n<li>Select &lsquo;Professional Tax Registration for Employers&rsquo; or &lsquo;Professional Tax Registration for Professional&rsquo;.<\/li>\n\n\n\n<li>Fill in the details in the form that appears.<\/li>\n\n\n\n<li>Then submit the form after reviewing the details.<\/li>\n\n\n\n<li>Acknowledgment receipt will be generated then.<\/li>\n<\/ul>\n\n\n\n<p><strong><em>The steps for online payment of professional tax in Gujarat are:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Log in to the official website.<\/li>\n\n\n\n<li>Then click on the online payment option and select the professional tax.<\/li>\n\n\n\n<li>Enter the PEC number in the text box and then click on search.<\/li>\n\n\n\n<li>The amount due will appear, and then select the suitable mode of payment from the options given and pay the tax online.<\/li>\n<\/ul>\n\n\n\n<p><strong><em>The modes of payment for a professional tax in Gujarat can be:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Net banking;<\/li>\n\n\n\n<li>Debit card; or<\/li>\n\n\n\n<li>Credit card.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is the due date to pay Gujarat professional tax?<\/h2>\n\n\n\n<table>\n<tbody>\n<tr>\n<td width=\"210\">\n<p><strong>No. of Employees<\/strong><\/p>\n<\/td>\n<td width=\"216\">\n<p><strong>Due Date<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"210\">\n<p>Less than 20 employees<\/p>\n<\/td>\n<td width=\"216\">\n<p>Before 15<sup>th<\/sup> of the following month<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"210\">\n<p>More than 20 employees<\/p>\n<\/td>\n<td width=\"216\">\n<p>Before 15<sup>th<\/sup> of the month subsequent of every quarter (for example, 15<sup>th<\/sup> October for July to September quarter.)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\">What is the penalty for the late payment of Gujarat professional tax?<\/h2>\n\n\n\n<p>A penalty can be imposed for the delay in payment of professional tax in Gujarat, i.e., 18% p.a. on the unpaid tax computed on a daily basis.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Gujarat Professional tax is not only a tax that is levied by the local municipal authorities on the professionals, but it is also levied on any individuals who earn through a profession, employment, or business.<\/p>\n\n\n\n<p>Thus, it is mandatory for persons to have an income or salary to register for the Gujarat professional tax.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/assam-professional-tax\/%0A\">All about Assam Professional Tax Registration<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat Professional tax is levied by the local municipal authorities on the professionals, and individuals who earn through a profession, employment, or business. Article 276 clause (2) of the Indian constitution gives the State Government the right to collect professional tax that cannot exceed Rs. 2500 annually on any taxpayer. In this article, we will [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":49133,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2435],"tags":[3891],"acf":{"service_id":"46"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>All about Gujarat Professional Tax Registration - Enterslice<\/title>\n<meta name=\"description\" content=\"The state government levies Gujarat professional tax on the salaried persons or the persons having income from the trade or business.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/gujarat-professional-tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"All about Gujarat Professional Tax Registration - Enterslice\" \/>\n<meta property=\"og:description\" content=\"The state government levies Gujarat professional tax on the salaried persons or the persons having income from the trade or business.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/gujarat-professional-tax\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-17T06:28:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-29T10:59:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2021\/04\/All-about-Gujarat-Professional-Tax-Registration.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Navdisha Sehgal","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2021\/03\/Navdisha.jpeg","authorDescription":"Completed BA LLB from JEMTEC, School of Law, Greater Noida (Affiliated to GGSIP University, New Delhi). I have an experience of about 2 years in various fields of corporate laws, but I have a keen interest in researching on legal issues and to gain knowledge. I always strive to bring the best to work on what I do.","postViews":605,"readingTime":4,"nextPost":{"id":49154,"slug":"faceless-hearing-under-income-tax-act"},"prevPost":{"id":49126,"slug":"section-269st-of-income-tax-act-1961"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2021\/04\/All-about-Gujarat-Professional-Tax-Registration.jpg","postTerms":"Taxation","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/49132"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=49132"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/49132\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/49133"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=49132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=49132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=49132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}