Documents required for professional tax registration

by Ananya Nair Accounting and Legal Services

Profession Tax is a tax levied on the employment and Profession by respective State Government of India. Professional tax is collected by the state to provide the infrastructure to enable you to run your business. Professional Tax is calculated is calculated on the basis of your salary and predetermined slabs. It was introduced in 1949 and was last revised in 1988.

Different states in India have their different rates and methods of collection. The professional tax is not imposed in all the Indian states. The states in which professional tax is imposed by the state government are west Bengal, Tripura, Telengana, Tamil Nadu, Sikkim, Odisha, Meghalaya, Madhya Pradesh, Maharashtra, Kerala, Karnataka, Gujarat, Chattisgarh, etc.

Documents required for Professional Tax Registration

For Individual / Proprietorship:

· Electricity Bill / Rent Agreement: Electricity Bill in case of owned shop or business premises, for any other case Rent Agreement.

· PAN Card of Individual.

· Adhar Card of Individual.

· 2 Passport size photos of proprietor.

· Signature on Blank Paper for record and verification.

· Bank Account of LLP/Firm: Cancelled cheque and bank statement.

For Company

· List of Directors.

· 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.

· Authorization Letter for obtaining user I.D. and Password of Professional Tax Department.

· 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.

· 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.

Professional tax can be described as a tax that is charged by the state government. It is normally imposed on all people who are earning a living some way or the other in the state. If you have registered for the professional tax and are not paying on time then a fine of 1.25 per cent of the outstanding amount would be levied at you on a monthly basis.

For any further details of any queries, you can get in touch with professional tax expert in your area.