IG­NIT­ING MINDS

PRO­FES­SION TAX REG­IS­TRA­TION

Libertatem Magazine - - Content - By Akanksha Sikri Jane Maria

Pro­fes­sion Tax is a state-level tax that ap­plies to salaried em­ploy­ees and pro­fes­sion­als, in­clud­ing char­tered ac­coun­tants, lawyers and doc­tors. The fol­low­ing states im­pose this tax: Kar­nataka, West Ben­gal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gu­jarat, As­sam, Ch­hat­tis­garh, Ker­ala, Megha­laya, Orissa, Tripura and Mad­hya Pradesh. Reg­is­tra­tion is manda­tory within 30 days of em­ploy­ing staff in a busi­ness or, in the case of pro­fes­sion­als, 30 days from the start of the prac­tice. This tax needs to be de­ducted from the salary or wages paid; the amount varies by state but is capped at Rs. 2500 per an­num. If you have em­ploy­ees in more than one state, you would need to get a Pro­fes­sion Tax Reg­is­tra­tion in each state. Even the rate at which it must be paid will vary. This makes it cum­ber­some for many small busi­nesses to com­ply with. Do note, how­ever, that many north In­dian states do not levy Pro­fes­sion Tax at all. The fre­quency of re­turn fil­ing de­pends on the state you're in. For ex­am­ple, in Maharashtra, re­turns can be filed an­nu­ally if the li­a­bil­ity is un­der Rs. 5000, quar­terly if the li­a­bil­ity is un­der Rs. 20,000 and monthly if it is above Rs. 20,000. How­ever, in West Ben­gal, re­turns need only be filed once every year. This is the ap­proach, in fact, many states are mov­ing to­ward now. A penalty of 10% of the amount owed can be im­posed in Maharashtra in case of de­layed pay­ment of Pro­fes­sion Tax. A de­lay in ob­tain­ing the En­roll­ment Cer­tifi­cate will be charged at Rs. 2 per day.

Here is the pro­ce­dure for reg­is­tra­tion in the State of Maharashtra:

1. At present, the ap­pli­ca­tions for reg­is­tra­tion and en­rol­ment un­der Maharashtra State Tax on Pro­fes­sions, Trades, call­ings and Em­ploy­ments Tax, 1975 (Pro­fes­sion Tax Act) are be­ing made man­u­ally to the Reg­is­tra­tion Au­thor­ity. On the re­ceipt of the ap­pli­ca­tion, it is ver­i­fied by the Reg­is­tra­tion Au­thor­ity along with the doc­u­ments sub­mit­ted.

2. Re­vised Pro­ce­dure: As a step to­wards e-gover­nance, the above pro­ce­dure of man­u­ally sub­mit­ting ap­pli­ca­tions for reg­is­tra­tion and en­rol­ment is be­ing changed. From 1st April 2012 on­wards, the ap­pli­ca­tion for reg­is­tra­tion (PTRC) and en­rol­ment (PTEC) un­der Pro­fes­sion Tax Act should be elec­tron­i­cally up­loaded in ‘Form I’ or ‘Form II’ re­spec­tively, as pro­vided on the web-site of the Sales Tax De­part­ment, Gov­ern­ment of Maharashtra i.e. www.ma­ha­vat.gov.in. The re­main­ing pro­cesses of ob­tain­ing reg­is­tra­tion/en­rol­ment such as ver­i­fi­ca­tion of doc­u­ments etc. will re­main the same.

Man­u­ally filled forms will not be ac­cepted on or af­ter 1st April 2012 ex­cept for non-res­i­dent em­ployer/per­son and Gov­ern­ment de­part­ments. Non-res­i­dent em­ployer/per­son/s and Gov­ern­ment De­part­ment/s may con­tinue to ap­ply man­u­ally.

3. Steps to make on line ap­pli­ca­tion:

a) The ap­pli­cant needs to log on to the web-site of the Sales Tax De­part­ment, Govt. of Maharashtra at www.ma­ha­vat.gov.in

b) On the home-page of www.ma­ha­vat.gov.in, the ap­pli­cant may go through the ‘In­struc­tion Sheets for es­er­vices -> E-PT Reg­is­tra­tions (PTRC and PTEC) for guid­ance.

c) There­after on the home page un­der ‘e-ser­vices’ the ap­pli­cant needs click ‘PT e- Reg­is­tra­tion’ link.

d) Next, “e-reg­is­tra­tion In­for­ma­tion – in­for­ma­tion (for PTRC or PTEC Reg­is­tra­tion…)” page will open. Em­ployer/per­son should en­ter/se­lect de­tails such as Name of Ap­pli­cant, PAN, TAN, sta­tus of ap­pli­cant and Lo­ca­tion. Ap­pli­cants from Greater Mum­bai should se­lect lo­ca­tion as Maz­gaon.

e) For ob­tain­ing Reg­is­tra­tion Cer­tifi­cate (PTRC), for Prin­ci­pal place of busi­ness within the State of Maharashtra men­tion­ing of TAN is op­tional. How­ever, If an em­ployer is ap­ply­ing for Reg­is­tra­tion cer­tifi­cate for places other than his prin­ci­pal place of busi­ness in the State of Maharashtra, then he should also en­ter TAN num­ber of that other lo­ca­tion for which he is mak­ing an ap­pli­ca­tion.

f) Next, an em­ployer ap­ply­ing for Reg­is­tra­tion Cer­tifi­cate (PTRC) should se­lect ‘Act’ as ‘PTRC Reg­is­tra­tion’ whereas per­son ap­ply­ing for En­rol­ment Cer­tifi­cate {PTEC) should se­lect ‘PTEC en­rol­ment’ as Act. Then the ap­pli­cant needs to click ‘next’.

g) The ap­pro­pri­ate e-ap­pli­ca­tion for Reg­is­tra­tion in form I or for en­rol­ment in form II un­der Pro­fes­sion Tax Act, de­pend­ing upon ear­lier selection will open. In­for­ma­tion in the form should be com­pletely filled in ei­ther by entering in the rel­e­vant fields or select­ing from drop down lists. Af­ter fill­ing in com­plete in­for­ma­tion ap­pli­cant should click “sub­mit” but­ton.

h) In case the data in any of the fields is not en­tered, then the ap­pli­cant would get er­ror mes­sage and would be prompted to en­ter the said data.

i) Af­ter com­pletely filled ap­pli­ca­tion form is sub­mit­ted (up­loaded), ac­knowl­edg­ment, con­tain­ing date and time for at­tend­ing be­fore Reg­is­tra­tion Au­thor­ity along with code/des­ig­na­tion and ad­dress of the Reg­is­tra­tion Au­thor­ity, will be gen­er­ated. This ac­knowl­edg­ment can be saved on the com­puter and needs to be printed for pro­duc­ing be­fore the reg­is­tra­tion au­thor­ity. The em­ployer/per­son should also save the filled in ap­pli­ca­tion form of reg­is­tra­tion or en­rol­ment as the case may be and should take print­out of it.

j) The pro­pri­etor, part­ner, karta or di­rec­tor, as the case may be, are re­quired to sign at rel­e­vant place/places on the print of the ap­pli­ca­tion so taken, and sub­mit it to the con­cerned Pro­fes­sion Tax Reg­is­tra­tion Au­thor­ity at the time of ver­i­fi­ca­tion on given date and time along with rel­e­vant doc­u­ments.

4) Grant of Pro­fes­sion Tax Reg­is­tra­tion/en­rol­ment Cer­tifi­cate:

If the ap­pli­ca­tion is found cor­rect and com­plete in all re­spects, af­ter ver­i­fi­ca­tion along with rel­e­vant doc­u­ments, then Reg­is­tra­tion Au­thor­ity will gen­er­ate TIN (Reg­is­tra­tion/en­rol­ment Cer­tifi­cate Num­ber un­der the Pro­fes­sion Tax Act) af­ter ver­i­fi­ca­tion. Reg­is­tra­tion/en­rol­ment cer­tifi­cates shall be printed and is­sued to the em­ployer/per­son on the ap­pointed day. In case it is found that the ap­pli­cant is el­i­gi­ble for grant­ing reg­is­tra­tion/en­rol­ment with li­a­bil­ity from any ear­lier date, then such date will be en­tered by the Reg­is­tra­tion officer. In case the ap­pli­ca­tion is el­i­gi­ble for grant­ing reg­is­tra­tion,

then the date of up­load­ing the ap­pli­ca­tion shall be con­sid­ered as the date of ap­pli­ca­tion for the pur­pose of de­ter­min­ing the ef­fec­tive date of Reg­is­tra­tion Cer­tifi­cate. Reg­is­tra­tion cer­tifi­cates will be sent via email and post. The ap­pli­cants need not visit MSTD offices for pro­cure­ment of Reg­is­tra­tion Cer­tifi­cates as the same would be made avail­able on the por­tal in down­load­able for­mat with dig­i­tal sig­na­ture of ap­pro­pri­ate cer­ti­fy­ing au­thor­ity. 5) De­fec­tive Ap­pli­ca­tion: If the ap­pli­ca­tion is found de­fec­tive, then de­fect memo will be is­sued and e-mail to ap­pli­cant. The ap­pli­cant needs to rec­tify the de­fects within 30 days.

2. In case the ap­pli­cant rec­ti­fies the de­fects within 30 days, the Officer will ver­ify and if found sat­is­fac­tory then TIN would be gen­er­ated. In this case the date of first ap­pli­ca­tion would be taken for the pur­pose of de­ter­min­ing the ef­fec­tive date of RC.

3. If the ap­pli­cant does not rec­tify the de­fects shown in de­fect memo within 30 days, then the ap­pli­ca­tion shall be re­jected and the tem­po­rary pro­file will be de-ac­ti­vated af­ter 90 days.

6) Re­jec­tion of ap­pli­ca­tion: If the em­ployer/per­son is not able to ap­pear on ap­pointed date and time then em­ployer/per­son should ob­tain date and time from con­cerned Reg­is­tra­tion Au­thor­ity within ten days. The de­tails of Reg­is­tra­tion Au­thor­i­ties along with the des­ig­na­tion and their tele­phone num­bers are avail­able on home page un­der e-ser­vices un­der In­struc­tion Sheets for e-ser­vices-> E-PT Reg­is­tra­tions (PTRC and PTEC). The em­ployer/per­son should contact the Reg­is­tra­tion Au­thor­ity whose des­ig­na­tion ap­pears on the ac­knowl­edge­ment. It may be noted that only one re­quest for change of date shall be en­ter­tained. If the em­ployer/per­son does not attend be­fore Reg­is­tra­tion Au­thor­ity on ap­pointed date and time along with ac­knowl­edg­ment and copy of rel­e­vant filled in & signed ap­pli­ca­tion form or does not ob­tain ap­point­ment within next ten days, then the ap­pli­ca­tion shall be re­jected.

7. In Mum­bai, pre­vi­ously work of Reg­is­tra­tion/en­rol­ment un­der the Pro­fes­sion Tax Act was car­ried out at Sub Ur­ban Vikrikar Bha­van Ban­dra and Vikrikar Bha­van Maz­gaon. How­ever from 1st April 2012 on­wards it will be car­ried out at Vikrikar Bha­van, Maz­gaon only.

8. Abun­dant care is be­ing taken not to give ap­point­ments on pub­lic/lo­cal hol­i­days. How­ever, in case a pub­lic hol­i­day/lo­cal hol­i­day gets de­clared on the given date of ap­point­ment then em­ployer/per­son should attend on ‘first work­ing Fri­day* sub­se­quent to the said date of pub­lic hol­i­day/lo­cal hol­i­day.

9. Ap­pli­cants cov­ered un­der En­try No. 13 of Sched­ule I of the Pro­fes­sion Tax Act i.e. hold­ers of per­mit for trans­port ve­hi­cle granted un­der the Mo­tor Ve­hi­cles Act 1988, should di­rectly ap­proach the con­cerned RTO for en­roll­ment cer­tifi­cate. Such ap­pli­ca­tion will not be pro­cessed by the Sales Tax De­part­ment.

REF­ER­ENCE LINK: http://www.ma­ha­vat.gov.in/ma­ha­vat/in­dex.jsp

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