Crucial Aspects of Professional Tax

Taxation on professionals is a matter of vital importance. As per schedule 7, as well as article 276 of the Indian Constitution governments of various States, have the power to levy taxes on businesses, trades and employees in the form of professional tax. As a private business owner, you must register for payment of PT if the Government of your state has made it compulsory.  If you do a Google search, you can easily find out if your country has enacted such provisions. You should also bear in mind that delays in payment or non-payment of PT can lead to penalties on your private limited company.

Hiring Experts

There are multiple benefits which you can enjoy by using the services of qualified and skilled CAs. They will tell you all about the different taxes that you need to pay annually to keep your company running smoothly. Professional tax is one of the most vital taxation regulations that the governments of some States have put into place. Your chartered accountant will handle the registration process for professional tax registration certificate also known as PTRC.

In some States, the state government has given the power of taxation to the municipal corporation of different cities. If your company is located in one of those States, then professional tax will be a matter of municipal governance for you. You must also bear in mind that application for professional tax enrollment certificate is always compulsory. However, the professional tax registration certificate is needed only for those companies who are paying salaries to their employees.

Do not shy away from paying professional tax

The truth is that very few corporations will need to substantial sums of money as professional tax. In most cases, rupees 2500 is the limit of PT. So, there is no point in attempting to avoid any taxation because the annual tax bracket is minimal.

And, unlike other taxes, it will not have any substantial impact on the overall scheme of things. It is also essential to understand that full-time directors, as well as managing directors of your company, are considered employees for professional tax.

Understanding the difference between PTRC and PTEC

Liability for professional tax enrollment certificate for any company is never more than rupees 2500 annually. The amount of money that needs to be paid as per the registration certificate varies from one corporation to another. You must also keep in mind that taxation as per PTEC is different in all states wherever professional tax is applicable.

If the number of employees in your company is substantial, then you will have to pay a considerable amount of money under the terms of PTEC. All states which professional levy tax have promulgated accurate and exact slabs for proper calculation of PTEC professional tax.

Professionalism is crucial

A good chartered accountant will give you all the relevant information. They will also take care of all the filing that needs to be done for timely payment of professional taxes. The addition of PTRC and PTEC can do the calculation of the exact professional tax.

Source URL : Vakilsearch.com