Application of the profession Tax in compliance with India’s Constitution: Article 276 of the Constitution of India stipulates that the tax on occupations, trades, callings and jobs shall be assessed and collected by the provisions of this Act. All persons engaged in any profession, company, call, job, and falling within one or another of the classes mentioned in the second column of the Schedule shall pay the government tax to the State at the rate referred to in the third column of that Schedule against the class of such persons. Given that section 23 in the schedule applies only by notification of time to those groups of persons identified by the State Government.
What is the professional tax?
Professional tax is the tax that the State governments in India levied and collected. It’s a tax that is indirect. Anyone who earns wage incomes or a practitioner, such as an accountant, an accountant, a lawyer, a physician, etc., shall pay this professional fee. Various states have varying collection rates and processes. Every month, professional tax is levied in India.
Not all nations, however, enforce this levy. The states that charge professional taxes are Punjab, Uttar Pradesh, Karnataka, Bihar, western Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu and Gujarat. This tax applies to business owners, workers, traders and people who take on various jobs.
The professional tax is paid quarterly in Gujarat. If the company consists of fewer than 20 employees, the company or company has to pay PT tax within fifteen days after the end of the month. On the other hand, if the number of workers reaches 20, the company or company may pay a quarterly professional tax. Again, it must be carried out within 15 days of the end of the previous quarter.
The application for their employees’ registration should go to their tax offices within 30 days of the appointment date.
All workers are expected to file within 30 days from the date of appointment.
If the company owner has more than a corporation, registration applications must be filed for each authority separately in each jurisdiction if other laws and regulations are applicable.
Documents needed for the registration
Certificate of incorporation
Records of accounts
Salary and payslip details
A number of employees working.
Profession Tax Slabs in Gujarat
Each individual registered for professional tax pays a certain amount every month, depending on the monthly salary. Whereas professional tax is typically payable by the taxpayer itself, it is done by the employers in trade and businesses.