Types of Profession Tax

Transcription

1 History of P T Act Profession Tax- Introduced in the year 1975 with a view to raise the resources needed for implementing the Employment Guarantee Scheme of the M. S. Govt. and to provide for establishment of the Employment Guarantee fund. Constitutional provision Article 276 of Constitution of India Empowers, the State Government to make law to levy a tax on Professions, Traders, Callings and Employments. Nature of profession Tax- Its a tax on professions, trades, callings and employment. It is payable because the assesse carries on a Profession, or Business activity

2 Types of Profession Tax 1) PTRC (Profession Tax Registration Certificate) 2) PTEC (Profession Tax Enrollment Certificate) PTRC Profession Tax deducted from the Employees salary according to Slab Rate, by Employer Employer is required to deposit deducted PT in Govt treasury by challan in MRT 6 Form. PTEC Profession Tax payable by Individual Professionals, Self Employed persons and employers PTEC Holder is liable to pay tax mentioned in Entry no. 2 to 21 of Schedule 1. PTEC holder has to pay maximum Rs.2500/- Every Year.

3 Registration & Enrolment Section 5 Certificate of Registration (PTRC) (Form I-A): Every employer liable to deduct tax & pay it, shall obtain a PTRC. (An officer of Govt. need not get PTRC) Certificate of Enrolment (PTEC) (Form II-A): Every person liable to pay PT, shall obtain PTEC. Particulars Appln Time Limit for application Form No. PTRC I Within 30 days from his becoming liable to deduct and pay PT PTEC II Within 30 days from his becoming liable to pay PT

4 Profession Tax Enrolment Certificate Profession Tax Enrolment Certificate is to be obtained by Selfemployed persons, Professionals Such self employed persons and professional are divided into 20 categories, which are called Schedule entries. The schedule in which such categories are mentioned is Schedule I of Profession Tax Act The application in Form II is to be made within 30 days by such person from the starting of his liability to pay tax Single application for all POB in Maharashtra The Certificate is in Form II-A. PTEC itself is a demand notice which mentions his Schedule Entry, Back Tax Liability (if any), Annual Tax Liability, Due Dates to discharge his liability. Optional penalty for late application U/s 5(5) is Rs. 2 per day

5 Limitation to charge PTEC (w.e.f. 1/5/2012) A person liable to pay tax has remained un-enrolled then his liability to pay tax shall not exceed eight years from the end of the year immediately preceding the year in which he has obtained the enrollment certificate or the year in which the proceeding for enrollment is initiated against him whichever is earlier. E.g. if he has obtained PTEC in then we can recover the tax from

6 Payment of Tax by EC holder Payment of tax by EC holder Particulars Form Due Date for paying Tax EC obtained before MTR-6 Before 30 th June of Year 31 st May of the year EC obtained after MTR-6 Within 1 month from date 31 st May of obtaining EC Revised Rate of Tax MTR-6 Within 1 month from date Revision of Tax Lump Sum Payment for Five Years. (U/s 8(3)) Can pay in advance a lumpsum amount equal to four times of such rate of tax, on or before 30 th June of the year.

7 Interest, Penalties & Offences Interest / Penalty Section Description Provision Interest 9(2) Late payment of Per Month 9(2)A Short Per Month Penalty 5(5) Failed to Applied to Register 5(6) Providing false Information Rs. 5/- for each day(for PTRC) Rs. 2/- for each day(for PTEC) 3 times of the payable tax 10 Non Payment of Tax 10% of the amount of tax due 16 Non Production of Book Of Account Offences 20 Fails to comply with any of the provisions of the Act. Rs.5/- Per day for delay Maximum upto 5000/- Rs.50/- Per day for delay Maximum upto 5000/-

8 Schedule I of P.T Act Entry Short-Description Tax Rate p.a. 01 Persons working in foreign embassy, with more than 1 employer As per his total salary 02 Self Employed Professionals (1 year Exemption) 2500/- 03 Members of Stock Exchange Remisiers 2500/- 04 Building contractors and Estate Agents, Plumbers, Brokers (1 yr exemption) 2500/- 05 Directors of Companies 2500/- 06 Bookmakers, Trainers, Jockeys 2500/- 07(a) Senior Artist in Cine, TV, Theater, Orchestra, Modelling 2500/- 07(b) Junior Artist 1000/- 08 MVAT dealers (depends on annual turnover) 2500/- 09 Factories not covered by entry /-

9 Schedule I of P.T Act Entry Short-Description Tax Rate p.a. 10 (1) Shop and Establishment License holders 10(2-6) STD / ISD both owner, Beauty Parlors / Cable Operators / Halls owners / Coaching Classes. 2500/- 11 Petrol Pump / Garages / Service Stations 2500/- 12 Foreign Liquor Vendors, Residential Hotels, Theaters 13 Transport Permit holder (Transferred to RTO 1/4/2007) 2500/- 2500/- 14 Money Lenders 2500/- 15 Conductor of Chit Fund 2500/- 16 Co-Operative Societies (State Level, Dist Level, Sugar Factories and spinning mills, Handloom Weavers)

10 Schedule I of P.T Act Entry Short-Description Tax Rate p.a. 17 Banking Companies 2500/- 18 Companies Registered under Companies Act /- 19 Partners of a Partnership firm (Registered or not) 2500/- 20 Co-parcner of HUF 2500/- 21 Residual Entry 2500/- If a person covered by more than 1 entry, then he should pay the tax at higher rate For Entry 08 PT should be calculated on the basis of Turnover of Sales or Purchases

11 Profession Tax Enrollment Amnesty Scheme 2016 (01/04/2016 TO 30/09/2016) 1. Liability to pay tax of an un-enrolled person shall be up to 3 years instead of 8 years, preceding the year, in which he has applied for enrolment. 2. Full interest Waiver during amnesty period. 3. Full penalty (u/s5(5))waiver during amnesty period. 4. Applicable Period- Unenrolled person needs to apply from 1 st April to 30 th Sept 2016 to qualify for the benefits of the scheme

12 THANK YOU

13 What is Salary? Salary or Wage:- Includes Pay, Wages, D.A., other remunerations on regular basis. Prerequisites & Profits in lieu of salary as defined in S-17 of IT Act. Payments in cash or kind. Value of rent free accommodation. Overtime received. The payment of Subsidy. Lump sum agreed to be paid with Union. Lump sum at Voluntary Retirement paid during the period of Employment. Salary or Wage:- Does not include- Medical aid reimbursement. Leave Encashment. Traveling Allowance & Conveyance Allowance. Washing Allowance. Stipend paid to trainees & Apprentices. Leave Travel Assistance. Bonus, Gratuity & Pension

14 PTRC Current Slab Rate w.e.f No. Salary & Wage earners whose monthly salary or wages A Do not exceed Rs. 7,500/- B Exceeds Rs. 7,500/- but do not exceed Rs 10,000/- (For Female) C Exceeds Rs. 7,500/- but do not exceed Rs 10,000/- (For Male) D Exceeds Rs /- Profession Tax -Nil- -Nil- Rs. 175/- per month (a) Rs. 200/- p.m. except Feb. (b) Rs. 300/- for Feb.