Online Professional Tax Registration - An Overview

Professional tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers, and doctors.

Legal Registration provides assistance with

Data Check

We do a thorough check of the files you send for professional tax registration

Vendor Connect

We will appoint an affiliate to process your application

Recepit Of Tax Number

The TIN will be issued within 15 days of the professional tax registration

Professional Tax Applicability

Professional tax is levied on all types of trades and professions in India. It has to be paid compulsorily by every staff member who is employed in any private firm operating in India. Professional tax registration is the onus of every business owner, who must take up responsibility for deduction of professional tax and payment for the same

Professional Tax Variation With Each State

Professional tax payment will always have distinct rates that keep varying from state to state. The state governments which are levying state tax are West Bengal, Maharashtra, Karnataka, Kerala, Assam, Madhya Pradesh, Orissa, Tripura, Meghalaya, and Gujarat.n

Professional Tax Self Employed

Any professional who gets a regular income on a monthly basis will have to pay the professional tax. By the term professional, we imply people working in specialized fields like accountancy, media, medicine, information technology, media, etc.

Professionals offering freelance services also need to pay professional tax using a special type of form. They can fill the form and get a registration number first. Then, using that number, they can pay their taxes in the corresponding banks.

In certain states in India, specifically , Maharashtra Profession Tax Act amended from 1.4.2018, Now a Limited Liability Partnership and each partner of LLP shall be liable to pay PT of Rs. 2,500/- per annum.

Exemption From Professional Tax Payment

The following individuals are exempted to pay professional tax:

  • Parents of children with a permanent disability or mental disability.
  • Members of the armed forces, including members of auxiliary forces or reservists, serving in the state.
  • Individuals, over 65 years of age.
  • An individual who is physically challenged (also visually challenged).
  • Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
  • Parents or guardians of individuals who are mentally challenged
  • Badli workers in the textile industry.

Why pay Professional Taxes? Benefits

Here are the reasons why one should never miss a professional tax payment

  • IT IS A JUDICIAL REQUIREMENT

    As per the rules and regulations of India, every employee is bound to make the professional tax payment without fail. Employers in many states of India are strictly bound by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and pay the service taxes of all the employees who work under them.

  • TO AVOID PAYING PENALTIES

    Failure to professional tax registration results in huge penalties that keep on increasing over time.

  • EASY TO COMPLY

    When something is easy to comply, it won’t be difficult to follow. The professional tax regulations are so easy to follow that and not difficult to comply with. The registration procedures can be done quickly and the further proceedings are also much easier.

  • DEDUCTIONS

    Deductions can be claimed in the salary on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer made the payments.

  • THE STATE GOVERNMENT TAX

    The local authorities and the state government have the right to collect all the professional taxes based on employment, profession trades and much more. The collected amount of professional tax per annum should not go beyond Rs. 2500 per an annum.

Documents required for Online Professional Tax Registration

Here is a list of documents required to register for professional tax:

  • Certificate of Incorporation, including MOA & AOA / LLP Agreement.
  • PAN card of Company/LLP which is attested by the company director
  • Place of business proof along with a NOC from the owner of the premises
  • Bank account of the company including bank statement and cancelled cheque.
  • Passport size photographs, address and identity proof from all the directors
  • Board resolution or in other words, the statement of consent by the partners.
  • Shop and establishment certificate
  • Salary register and attendance register
All the fields are monidatory.

Registration Process

Online Registration

Steps involved in Online Professional Tax Registration

  • ONE WORKING DAY

    Within one working day, you will have to provide your PAN card, address proofs and identity proofs of all the directors/partners/proprietors of the company. You also need to furnish the details of all employees working under you.

  • TWO WORKING DAYS

    The application form for professional tax will be then filled up by the employees and then submitted to the concerned authorities by our expert affiliates. If the documents are all provided in order, then the process will not take more than two working days.

  • SEVEN WORKING DAYS

    Within five to seven working days, the basic acknowledgment will be provided by us. In case the documents are not in proper order, the inspector will ask for the missing documents. As soon as you provide the missing ones, the process will be completed. The registration hard copy will be issued with 10 days in all the major cities. In other places, it might take up to 15 to 20 working days.

How can we help with Professional Tax Registration? Why Legal Registration?

We at Vakilsearch are ready to assist you whenever you need. Here are some of the ways in which we can help you with online Professional Tax Registration:

  • PREPARING THE APPLICATION

    It can be a muddling task to prepare the application as the terms and formalities can be a bit difficult to comprehend. Our professional tax experts do a proper assessment of the business and prepare a document for tax application with the government of the respective state.

  • FILLING OUT THE APPLICATION FORM

    Our experts will then fill the form and submit the duly signed form with the concerned department in the respective city or town.

  • REGISTRATION PROCESS

    The submitted application will then be scrutinized in detail by the particular state government. Once found to be proper and perfect, the professional tax registration will be done./p>

Why Legal Registration?

  • 50 VERIFIED VENDORS

    We've tied-up with some of the best vendors in major cities of the country to get you your Professional Tax Registration. We've completed 500+ registrations in the past 12 months.

  • 9.1 CUSTOMER SCORE

    We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

  • 160 STRONG TEAM

    Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.

FAQs on LLP Registration

Any individual, or even a company or an LLP, can become a partner. However, only an individual can become a ‘designated partner’ in an LLP.

Yes, non-resident Indians and foreign nationals who are willing to enter into an LLP partnership can do so, provided they submit the necessary documents after getting it notarized by the concerned authorities. Although, at least one of the designated partners in an LLP should be an Indian national.

Any group of persons who have or want to invest money in a business can start an LLP. A person or an investor becomes a partner, according to the LLP agreement, as provided in the Act of 2008. Also, the investors/partners are owners of the business started under the LLP.

An LLP agreement is one that is made between the partners and the LLP regarding the relationship between the individual partners in the LLP. An LLP agreement usually consists of management policies, inclusion of new partners, policy making strategies, and so on.

According to the LLP Act, a minimum of two designated partners are required to start an LLP. The designated partners are responsible for fulfilling all the essential requirements involved in starting and running an LLP.
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