The Profession Tax Act for employer

PROFESSION TAX ACT

The Profession Tax Act is a State Enactment. This Act is enacted for the benefit of the State for raising additional resources needed for implementing the Employment Guarantee Scheme of the State Government.

REGISTRATION Every employer liable to pay Tax in respect of his employees shall obtain a Certificate of Registration from the Profession Tax authority. The Certificate of Registration is to be obtained within 30 days of engagement of 1st employee, liable to pay tax. ENROLMENT OF ESTABLISHMENT / PERSON : Every person or every establishment in the respective State liable to pay Tax (other than person earning salary or wage) shall obtain the Certificate of Enrolment in the prescribed Form from the Profession Tax authority. The application of Enrolment Registration to be submitted within 30 days of the establishment coming in the existence or person becoming liable to pay Tax. PAYMENT OF PROFESSION TAX : The amount of Tax due from enrolled persons for each year as specified in Enrolment Certificate, shall be paid on or before the due date as mentioned in against each States. THE PAYMENT OF TAX IN RESPECT OF SALARY AND WAGES EARNERS : The employer shall deduct the tax from the salary of the employees as per the slab and rates of tax specified for each State. The tax so collected from the employees salary shall be deposited in the Return-Cum-Challan Form, prescribed for the purpose within 30 days of the expiry of the wage period. ENROLMENT & REGISTRATION IN RESPECT OF MORE THAN ONE PLACE OF WORK IN THE SAME STATE: If a person or an establishment who has to apply for Certificate of Enrolment or Registration has more than one place of work, within the State, shall make a single application only, in respect of all place of work. In the application for Enrolment or Registration a name of only one place of work to be mentioned as principal place of work and submit the application to the authority in whose jurisdiction the principal place of work is situated. PENALTIES FOR NON-REGISTRATION AND DEFAULT OF PAYMENT OF THE TAX AFTER THE DUE DATE: In the Profession Tax Act each state has been prescribed penalties for non registration and default in payment of Profession Tax.