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Professional Tax Maharashtra

Professional tax is levied by the state government on the employed person and the professional. In Maharashtra, the professional tax is governed by Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.

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What is Professional Tax?

Professional Tax is levied by the state government on profession, trade or employment which is applicable to salaried employees and professionals such as chartered accountants, lawyers, and doctors. The power of levying professional tax by the state government is given under article 276 of the Constitution of India.

In the case of employment, at the time of making payment of salary, the professional tax is deducted by the employer. The rate of professional tax depends upon the state in which employee is serving his duties. State government uses different methods for collection of professional tax like collection through the separate department or through Municipal Corporation / Panchayat.

Applicability of Professional Tax Registration in India

Professional tax registration is applicable to the following states in India:

  • Andhra Pradesh
  • Assam
  • Bihar
  • Chhattisgarh
  • Gujarat
  • Karnataka
  • Kerala
  • Madhya Pradesh
  • Maharashtra
  • Manipur
  • Meghalaya
  • Mizoram
  • Orissa
  • Puducherry
  • Tamil Nadu
  • Tripura
  • West Bengal

What is Professional Tax Registration?

In Maharashtra, the professional tax is levied as per the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.

Professional tax is levied on individuals as well as organizations such as Partnership Firm, Company, Sole Proprietorship, Hindu Undivided Family (HUF), Society, Association of Persons, Corporation or any other corporate body.

  • In case of Individuals:
  • In Maharashtra, it is required for every person involved in any profession, trade, calling or employment to obtain a Certificate of Enrollment from the Profession Tax Authority. After obtaining a certificate, the individual tax liability can be discharged by the person for a period of five years by paying a lump sum amount in advance equal to the Profession Tax amount for four years. It will give relief from the payment of one year.¬† However, there is an exemption for senior citizens (above 65 years), handicap person (40% disability), and parents of the physically disabled person or mentally retarded child.

  • In the case of organizations:
  • It is mandatory for the employer organization to get them registered and obtain registration certificate as per the profession tax act so that payment can be made in respect of tax deducted from employees.

How to process for Professional Tax registration in Maharashtra?

One can obtain professional tax registration in Maharashtra, through sales tax department website. Within 30 days of falling under the applicability of professional tax, the application must be in Form 1. An acknowledgment would be generated after the submission of Form 1 consisting date and time for attending before Registration Authority. An application is required to be signed by the Proprietor or Partner or Director of the Company for submission it to the concerned authority for Professional Tax Registration. On receiving the signed application, concerned authority for professional tax registration will provide Form I-A along with TIN (Taxpayer Identification Number) as per the Profession Tax Act.

When to file a Professional Tax return in Maharashtra?

Those who carry professional tax registration in Maharashtra, have to file a professional tax return. A monthly professional tax return is required to be filed by such entities whose professional tax liability is more than Rs.50,000 before the due date each month. While annually professional tax return is required to be filed for those entities whose tax liability is below Rs. 50,000 in the previous year before the 31st of March.

Revised Professional Tax Return

In case of any omission or incorrect statement has been furnished then one can file revised professional tax return in Maharashtra. However, a revised return can be filed before a notice for assessment is served or before the expiry of six months period from the end of the year in which the professional tax return was due.

What is the due date of payment of Professional Tax in Maharashtra?

Professional tax payment is done on the basis of enrolment in Maharashtra. In case the enrollment is done before the commencement of a year on or before 31st May due date is 30th June. If the entity got enrolled after 31st May, then the payment of professional tax will be due within one month of the enrolment in Maharashtra.

How we can help you with Professional Tax registration?

  • Collection of all the necessary documents

    In the first step, our experts will collect the necessary documents for your Professional Tax registration.

  • Preparation for Professional Tax Registration

    On the basis of the given documents and information, our experts will apply for Professional tax registration with the Maharashtra government.

    Now, to complete this process, you have to fill an inquiry form on our website and click on the Get Started button. Our expert will call you back and solve your query. After the initial payment, our system will generate your order no which will be allocated to a dedicated in-house CA.

What are the documents required for Professional Tax Registration in Maharashtra?

Following documents are required for the Professional Tax Registration in India:

For Companies

  • Copy of PAN in respect of Directors
  • Copy of ID Proof like Aadhar Card in respect of Directors
  • Passport size photograph of all the Directors
  • Contact details of all the Directors (Email Id & mobile No.)
  • Utility bill for registered office proof
  • MOA & AOA
  • Certificate of Incorporation
  • Copy of canceled cheque
  • List of directors
  • Declaration
  • Sale Deed in case of owned property
  • Rent agreement in case of rented property

Individuals

  • Copy of PAN of an applicant
  • Copy of ID Proof like Aadhar Card of an applicant
  • Passport size photograph of all the Directors/Applicant
  • Contact details of an applicant
  • Utility bill for Registered office proof
  • Sale Deed in case of owned property
  • Rent agreement in case of rented property

What will be the penalty provisions regarding professional tax in Maharashtra?

There are heavy fines & penalties in case of non-compliance with the Professional Tax regulations in Maharashtra.

  • The penalty in case ¬†Professional Tax Registration is not obtained

    If professional tax registration is not obtained then there is a penalty of Rs. 5 per day in case of an employer and Rs.2 in case of a person.

  • The penalty in case of Late Payment of Professional Tax

    There is a penalty of 10% of the tax due in case of late payment of professional tax. Along with this, an interest up to 1.25% per month can be charged on late payment. However, in case person or employer fails to comply with the Maharashtra Professional Tax Act then authority may impose a penalty of not more than Rs.5000.

  • The penalty in case of Late Filing of Professional Tax Return

    In case of late filing of professional tax return, there is a penalty of Rs.1000. The amount of penalty is payable in addition to the amount payable for return.

Frequently Asked Question about Professional Tax

Professional Tax in Maharashtra is required to be paid by every person engage partly or actively in any kind type of trade, employment, profession, or fall under the Column 2 of Schedule I of the Professional Tax Act.

Yes, for the person liable to pay profession tax in Maharashtra, there are certain categories which consist of individuals, firms, corporations, Hindu Undivided Families, companies, societies, associations, and clubs.

Registration certificates are given to those employers who are required to pay profession tax on the behalf of their employees excluding government officers whereas enrolment certificates are given to those persons, for whom it is mandatory to pay professional tax, excluding those persons whose tax is paid by their employers.

For obtaining an enrolment certificate or registration certificate, one has to contact relevant registration authority in Maharashtra. We can file an application on your behalf with the authority in a struggle free manner.

In case of submission of incorrect information, while applying for an enrolment certificate or a registration certificate, penalty provisions are prescribed under Section 5(6) of the Profession Tax Act which is three times of the actual tax payable.

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