Professional Tax Registration

Professional Tax Registration in Bihar–Professional Tax is a tax levied by the State Government on professionals, entrepreneurs, and individuals who are engaged in any kind of trade, business, or profession. The tax is collected by the State Government and is used for the development of the state. In Bihar, the professional tax is governed by the Bihar State Tax on Professions, Trades, Callings and Employments Act, 2011.

Professional Tax is like Income Tax, levied by state government on companies, firms and professionals working within boundary of that state. Unlike, Income Tax, which is paid on monthly or quarterly basis, professional tax is paid once in year. Companies have to mandatorily pay professional tax every year irrespective of their income.

An individual acquiring a pay from pay or anybody rehearsing a calling, for example, contracted bookkeeper, organization secretary, attorney, specialist and so on are expected to make good on this expert assessment. It is a wellspring of income for the public authority. The greatest sum payable each year is INR 2,500 and in accordance with citizen’s compensation, there are foreordained chunks. It is additionally payable by individuals from staff utilized in privately owned businesses. It is deducted by the business from their worker consistently and dispatched to state exchequer and in certain states shipped off the Municipal Corporation. Paying proficient tax is obligatory. The citizen is qualified for annual assessment allowance for this installment.

In India, Professional Tax is demanded by the particular state legislatures on people utilized in government and non-government areas, or by and by of any calling like Chartered Accounts, Lawyers, Doctors, and so forth. The expense forced as such contrasts from one state to another because of the distinctions in charge rates set by the particular state legislatures. Proficient expense gathered from a salaried representative is considered as a derivation under Income Tax Act. This article investigates the different parts of Bihar Professional Tax.

Registration and Applicability:
On the off chance that the business is a corporate organization, association firm, sole ownership, and so on, it is expected to enlist and acquire an expert assessment enrollment endorsement to pay proficient duty on the business or calling being sought after. On account of workers, a business is considered liable for deducting and paying proficient expense to the State Government under the predetermined regulation. People who are on the quest for any outsourcing organizations with practically no representatives are additionally expected to enlist themselves under the individual state’s regulation.

Bihar Professional Tax Act, 2011

The Commercial Taxes Department directed under the Bihar Government is answerable for the assortment of expert assessment levy from experts in the state. According to the arrangements of Bihar Professional Tax Act, 2011, people participated in a business or calling are imposed Profession Tax of Rs.2500 (as the most extreme) and Rs.1000 per annum (as the base).

Excluded from settling Professional Tax:

The Professional Tax Rules give exclusions to the accompanying people:-

Guardians of youngsters experiencing mental or extremely durable handicap.
Individuals from the military ( as assigned in the Air Force Act, Navy Act and Army Act ) including individuals from helper powers/reservists, serving in a specific state.
People with super durable actual incapacity ( comprehensive of visual impairment)
People beyond 65 years old.
Badli laborers took part in the material business
Ladies connected only as a specialist under the Directorate of Small Savings or Mahila Pradhan Kshetriya Bachat Yojana.
Gatekeepers or guardians of simple-minded people

Required Documents for Professional Tax Registration in Bihar

FOR Companies:

PAN card of Company: PAN card must be attested by the Director of the Company.
Certificate of Incorporation of Company.
Memorandum and Articles of Association of the company.
Premises proof of Company: Ownership papers in case the premises is owned by the applicant, in other cases rent agreement and no objection certificate from the owner of the premises.
Bank Account of Company: Cancelled cheque and bank statement.
List of Directors.
Passport size Photographs of all Directors.
Documents of the Directors: PAN card + I.D. proof such as Passport, Driving Licence, Voter Card, Aadhar Card is acceptable + address proof as Electricity Bill, Telephone Bills and other utility bills.
Aadhar Card of the Company.
Board Resolution passed by the Director of the Company authorizing Professional Tax Registration.
Attendance Register & Salary Register.
Authorization Letter for obtaining user I.D. and Password of Professional Tax Department.

FOR LLP/PARTNERSHIP

PAN card of LLP/Partnership Firm: PAN card must be attested by the Designated Partner of LLP or any partner of Partnership firm.
Certificate of Incorporation of LLP or Registration of Partnership.
LLP Agreement / Partnership Deed.
Premises proof of LLP/Firm: Ownership papers in case the premises is owned by the applicant, in other cases rent agreement and no objection certificate from the owner of the premises.
Bank Account of LLP/Firm: Cancelled cheque and bank statement.
List of Partners.
Passport size Photographs of all Partners.
Documents of the Partner: PAN card + I.D. proof such as Passport, Driving Licence, Voter Card, Aadhar Card is acceptable + address proof as Electricity Bill, Telephone Bills and other utility bills.
Aadhar Card of the Partners.
Partners consent for application to register under Professional Tax.
Attendance Register & Salary Register.
Authorization Letter for obtaining user I.D. and Password of Professional Tax Department.

FOR INDIVIDUAL

PAN card of Proprietor, self-attested.
Premises proof of Proprietorship: Ownership papers in case the premises is owned by the applicant, in other cases rent agreement and no objection certificate from the owner of the premises.
Bank Account of Proprietorship: Cancelled cheque and bank statement.
Passport size Photographs of the Proprietor.
Documents of the Proprietor: PAN card + I.D. proof such as Passport, Driving Licence, Voter Card, Aadhar Card is acceptable + address proof as Electricity Bill, Telephone Bills and other utility bills.
Aadhar Card of the Proprietor.
Attendance Register & Salary Register.
Authorization Letter for obtaining user I.D. and Password of Professional Tax Department.
Professional Tax Registration Process in India

Professional Tax Registration Process in Bihar

The expert duty enlistment technique is extremely simple. The following are three significant focuses that one has to be aware and comprehend exhaustively.

Fluctuates According To State:- in the event that you are an entrepreneur and have representatives under various states working for you, then, at that point, you should get an expert expense enlistment for every one of the states. The duty piece rates can change starting with one state then onto the next.
The Frequency Of Filing Returns:- The recurrence with which one necessities to document returns will rely upon the express the individual lives in. Consequently, prior to petitioning for a return knowing the guidelines of the state is significant.
The Penalties:- Professional expense is material to a wide range of business substances. Proficient duty can be determined based on self-evaluation. It predominantly relies upon the expert or worker’s gross pay in the half-yearly stage.

In the event that you are an individual who claims an exchange or utilizes staff in your organization or is a functioning proficient, then you should enroll at the duty authority of the State’s proficient expense office. The business is likewise answerable for deducting the expert duty from his/her representative’s compensation. The deducted sum will be paid to the public authority when the business records their expert expense form.

Advantages to making good on Professional Taxes

Here are the motivations behind why one ought to never miss an expert assessment installment

It Is A Judicial Requirements:- according to the principles and guidelines of India, each worker will undoubtedly make the expert duty installment as a general rule. Businesses in many provinces of India are completely limited by the legal executive to acquire the enrollment of expert assessment.
To Avoid Paying Penalties:- Failure to proficient expense enlistment brings about gigantic punishments that continue to increment after some time.
Simple To Comply:- When something is not difficult to agree, it will not be hard to follow. The expert assessment guidelines are so natural to adhere to that and easy to agree with. The enrollment techniques should be possible rapidly and the further procedures are additionally a lot more straightforward.
Allowances:- Deductions can be asserted in the compensation based on the expert duty paid. The derivations will be permitted in the year relating to which the citizen made the installments.
The State Government Tax:- The neighborhood specialists and the state government reserve the privilege to gather every one of the expert duties in view of business, calling exchanges and substantially more. The gathered measure of expert duty per annum shouldn’t go past Rs. 2500 for each an annum.

Frequently Asked Questions (FAQs)

Qus:- 1.If I am covered by more than one section of the Schedule, at which rate would it be advisable for me to settle burden?

For this situation, the higher/most noteworthy pace of duty will be relevant against your

various passages according to plan determined.

Qus:- 2.How much is the Professional Tax (PT) in India?

The assessment chunks fluctuate across every one of the states in India.Although, how much yearly installment can’t surpass INR 2500.

Qus:- 3. Is Professional Tax (PT) required in India?

While specific states are at risk to make good on the duty, others are not. Despite the fact that, it is required for the states which are responsible to settle the expense.

Qus:- 4. In which state professional tax is applicable?

The assessment is appropriate to the accompanying states and association domains

Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Mizoram, Meghalaya, Nagaland, Odisha, Puducherry, Punjab, Sikkim, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, and West Bengal.

 

Professional tax is a tax levied by state governments on individuals and organizations engaged in any profession, trade, or business. It is a type of direct tax that is collected by state governments for the development of the state. The professional tax is governed by the respective state’s professional tax act and rules.

The tax amount is calculated based on the income earned by the individual or the organization and is payable annually or monthly. The tax rates vary from state to state and are usually fixed in slabs based on the income earned.

Professional tax is applicable to a wide range of professions and businesses, including salaried individuals, self-employed professionals, traders, and companies. The tax is typically collected by the employer or the business owner and deposited with the state government.

The professional tax registration process varies from state to state. In most states, it is mandatory for professionals and businesses to register for professional tax within a specified time after starting their operations. The registration process involves submitting the required documents and paying the registration fee.

The advantages of professional tax include providing revenue to the state government, ensuring compliance with the law, and contributing to the development of the state. However, the disadvantages include increasing the compliance burden on individuals and organizations, discouraging individuals from taking up certain professions, and increasing the cost of doing business.

Overall, professional tax is an important source of revenue for state governments and plays a vital role in the development of the state. It is important for individuals and businesses to comply with the tax regulations and pay their dues on time to avoid any legal consequences.