Industrial Relations And Labour Laws
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Hi, PLease advice me if Shops and establishment to be registered for registration of Professional Tax In Kerala?? Thanks Jessy
19th October 2007 From India, Madras
There is no such registration exclussively for Profession Tax. When the local authorities (Panchayat/ Municipality/ Corporation) issue notice u/s 250 (Chapter 14) of the Kerala Municipalities Act, 1994, calling the head of the organisation/ employer to furnish details of employees working in the organisation for the assessment period (of six months), you have to furnish the details. On receipt of the details the same will be entered in a Register (Demand Register) maintained for this purpose u/s 253(2) of the Act.
Once this is done, the secretary of the municipality shall issue notice to the concerned establishment in every May and November of the year to furnish details of salary paid to the individual employees during the respective half year (section 254(1). Accordingly the employer shall furnish the information and remit the profession tax not latter than August and February of the year (Section 254(2)). However, under Chapter 22 of the Kerala Municipalities Act, registration is mandatory for running a tutorial college/ institution.


27th August 2008 From India, Kannur
Dear Madhu, Many thanks for your quick response. Kindly also let me know the current Professional tax slabs for Cochin. Hope to hear from you soon. Regards, Sachin Puri
28th August 2008 From India, Delhi
Please find the attachment. Regards, Madhu.T.K
29th August 2008 From India, Kannur

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Hi Madhu,
I have seen your explanation about PTAX, its nice and clear.
I am taking care of chennai PTax and related procedures.
Now I need to take care of cochin branch also.
Can you please clarify below mentioned queries :
1.When is the last date of PTAX payment?
2.Payment should be paid by DD/Cheque & should be in favor of....?
29th September 2008 From India, Madras
Profession Tax is always paid in advance. For the first Half of April to September the tax is to be paid on or before August 31 and for the second half of October to March the tax payment date is 28th February.
30th September 2008 From India, Kannur
Thank you...
we have paid last PTAX on 28'Mar'08.
If we pay this six (Apr - Sep) months by first/second of week of october, do I need to pay any penalty? please clarify.
can you please tell me any tax consultant contact numbers in cochin??
I can contact them and send my branch employee details so that they can derrive the figure and pay the amount.
30th September 2008 From India, Madras
You can appraise your Cochin Branch in Charge to meet the Secretary of the Cochin Corporation for details. No need to contact a consultant for this purpose. Please note that it is a pleasure for the members of citehr to offer such services free of cost and we will not encourage directing a needy to a professional consultant in ordinary circumstances.
Usually after due date of payment, all payments shall be accepted only with penal charges.
3rd October 2008 From India, Kannur
Can you please send me a soft copy of the statement showing details of half yearly income of a Self Drawing Officer in Kerala to be submitted along with remittance of Professional Tax.
Varghese J
1st March 2009 From India, Kochi
is the profession tax different for areas coming under the Panchayat and the Corporation in Cochin
20th April 2009 From India, Sholapur
PTAX Should be paid ever half year i.e Oct - Mar should pay by before 30-Apr & Apr - Sep should pay before before 31-oct
There aere 8 slabs for PTAX payment based on the employee salary.
For registration you need to fill the form section 245 & 254 of K.M ACT 1994.
I visited cochin corporation office for my branch PTAX registration and collected those information and completed the formalities.
21st April 2009 From India, Madras
Dear Mr. Madhu
I have read your guidelines on Professional Tax of Kerala. They are very useful. Thanks.
We are into Solar Energy products established our business across Kerala. We have our branches in Cochin, Kottayam, Trissure, Kodungallore, Muvathupuzha, Chalakudy etc. Need to know Where PT should be paid. Whether it can be paid in one central location for all branches at Kerala or It should be paid branchwise?.
I also noticed that you have mentioned that PT is always paid in advance. In new establishments like us(started 6 months back) how can we pay it in advance?
I also seek your guidelines in registering our branches at Kerala under Shops and Establishments Act.
I heard that paying staff welfare fund is must to register branches? if so please let me know more about it(how much to be deducted? whom and where to be paid and when)
I Know i have asked you more information but will be greatful you kindly answer my quiries.
Thanks in advance
HR Generalist
18th May 2009 From India, Bangalore
Dear Nagaraj,
Profession Tax cannot be paid centrally. Since it is a subject of local administration, the PT in respect of branches and employees of the branches should be remitted in the area where the branches are located.
For advance payment means payment for the next half year of operation calculated on the basis of salary of the employees projected to the next half year and in the similar way, revenue projected to the next half year.
For registration under the Kerala Shops and Commercial Establishments Act, you may contact the Asst. Labour Officer of the area and submit form B1 along with prescribed fees.
If covered by Kerala Shops and Commercial Establishments Act, a new Labour Welfare Fund meant for employees of Shops and Establishments is in force and the amount is Rs 20 of employees share with an equal share of employer.
28th July 2009 From India, Kannur
There is no separate registration for profession tax. But for each unit, a separate ledger is maintained by the Local authorities showing the details of tax due and tax paid. Regards, Madhu.T.K
22nd August 2009 From India, Kannur
If an employee is posted as a resident engineer in cochin, and the Co. is delhi based then, do we need to get him registered under professional tax act of Kerela?
4th September 2009 From India, Delhi
If he is holding an office in Kerala then he has to pay profession tax in Kerala only even though his salary is paid from Delhi. Regards, Madhu.T.K
5th September 2009 From India, Kannur
Hi, Is there is any criteria to levy penalty for delayed PT payments. Please guide me, as I haven’t paid PT from April"08.
12th October 2009 From India, Bangalore
hai all,
We all know that professional tax is levied by virtue of sec 254 (2) of the Kerala Municipality Act, 1994. Slab rates are also available, but can anybody help me out as to how the gross earnings for the purpose of professional tax calculation is arrived at?
Would HRA be a part of the gross earnings for the purpose of prof tax. Appreciate if you could guide me on the relative clause of the Act please......
Rajesh. TV
15th October 2009 From India, Kochi
For the purpose of calculation of Profession Tax, income received should include all earnings of an employee by way of basic salary, dearness allowance, House rent Allowance, conveyance allowance and even the Overtime payments received during the half year. Certainly, if bonus is received, the amount of bonus received will also qualify for payment of profession tax.
16th October 2009 From India, Kannur
Dear Madhu there is an amendment to the KMC act for sec 254 for Aug and Feb it is now Sep and Mar. attaching the file also.
20th January 2010 From India, Delhi
Kindly let me know whether it is necessary to obtain License or Certificate under Shop and Establishment Act before going to register for Professional tax?
29th January 2010 From India, Kochi
Profession Tax is assessed and paid to the local administration, ie, Gram Panchayat, Municipality or Corporation whereas registration to run an establishment is issued by the competent authorities under the Factories Act( Inspector of Factories and Boilers), Kerala (any other State) Shops and Commercial Establishments Act( State Labour Department) etc. Obtaining registration to start an establishment is mandatory and is the first step. But it has nothing to do with assessment of profession Tax.
30th January 2010 From India, Kannur
Dear Madhu,
Thank you very much. Its very useful.
But when I approached the Revenue Inspector at Corporation of Cochin, Zonal office, they are saying Now we have to first submit an application for revenue assessment of our branch, then after assessing the office and other details by Revenu Inspector, they will inform us the amount we have to pay against and also what all the documents to be submitted along with the amount. But he was asking me first that "have u got license from health department" ?.
So now I again got confused what all are the procedures to get the same done (I mean Proffessional tax payment).
Can you please clarify.
I knw the procedures to get the License under Shop and Establishment Act. But don't know about the license from health department.
If you can give me a clear idea about this I will be very thankful to you and to this group.
1st February 2010 From India, Kochi
Obtaining licence from the health department is one of the formalities connected with setting up of an establishment. Once you comply with it only you can get registration under Shops and Commercial Establishments Act or Factories Act, as the case may be. The licence is in fact the identity of the establishment. That is why the Officer has asked about it.
3rd February 2010 From India, Kannur
Any tax, whether Income tax or profession tax, is calculated on the earnings of the employee. Therefore, if an employee had been paid something less than what is his actual pay due to absence from work without leave or simply loss of pay, the same has to be added up to arrive at his earnings/ salary for the purpose of tax calculation. As such salary after deduction of Loss of pay should be the base for PT calculation. And in case the employee has been on leave without pay and has worked for less than 60 days in the half year, naturally, he is not expected to pay any profession tax.
9th February 2010 From India, Kannur
There is no separate PT slab for Cochin. For Kerala a common slab is available and that is available in the thread as attachment. Please start from the beginning of the thread and get it.
1st April 2010 From India, Kannur
I paid my professional tax, then after two months or later but less than 6 month I resigned from my post, what is the procedure? Is i’m liable? ,if liable how much? please inform me.
5th July 2010 From India, Kottayam
I presume you mean your salary was subject to deduction of Prof. tax for two months and later on you resigned. If so, the employer will pay the tax so deducted to the local administration when it becomes payable along with tax due on other employees salary. If no deduction is made from the monthly salary but the practice is to deduct it once with sixth month salary only, then you will be liable to pay it directly to the local administration as per the tax rates applicable. But in practice no body remits it so and the local administration will not trace it.
5th July 2010 From India, Kannur
Will you be able to throw some light on how the salary for the month of August and September is calculated if the tax is to be remitted in August (the 5th month). If the figures taken are of the payable scale without deductions and supposing that the employee is on medical leave or loss of pay for two months; he is not earning anything. Will it be an acceptable practice if six months prior to August is taken for computing profession tax?
23rd September 2010 From India, Thiruvananthapuram
Thanks for the reply Madhu. But if anyone in the group can throw some light on how this practise of taking the projected salary for one or two months rather than taking the paid salary of previous six months came to be, it will be useful. Does anyone see anything seriously wrong if one takes the actual salary of previous six months for computation of professional tax?
30th September 2010 From India, Thiruvananthapuram
Dear Madhu, I want to Register the Company under PT Registration in Cochin. What is the Procedure and Rules? Please Clarify.....
10th September 2012 From India, Bangalore
There is no separate revenue slabs for employers but the same which is applicable to employees applies to employers also. Please remember that the figures are not salaries but the income/ revenue earned which implies that profession tax is payable not merely on salary but on all sorts of income, that is income by means of fees )doctors, lawyers and other professionals pay PT on their fees), turnover (traders, industrialists and commercial establishments pay it based on their turnover) and so on.
19th December 2012 From India, Kannur
Dear Kdonline,
If your company is situated in the corporation or municipal area then it is Rs.2500/- fixed per six months. ie is you have to pay the PT before march 31st and september 31st.
If you really what to outsource your compliance service, then we are ready to help you. We are the leading labour law compliance consultancy in kerala having PAN india presence.
20th December 2012 From India, Kochi
PT has to be paid for the company as well as the employee of the company. For company it is 2500 per six months fixed and for the employees it is according to the slab.
20th December 2012 From India, Kochi
Is there any employer contribution for professional tax in Kerala to be paid...which comes up to 1250 once in every six months.. if yes.. can any one please send me the link where I can find the Law in writing...
15th July 2015 From India, Kollam
That is not employer's "contribution" but it is the amount that the employer has to pay on the revenue/ income that he generates. One should understand that profession tax is a tax on revenue, need not necessarily be salary but it can be any type of revenue, like fees which a doctor or lawyer collects, and so on. When it comes to an employer it will be the turn over which is considered as the revenue generated. An employer whose revenue during the half year is less has to pay less tax and the maximum is Rs 1250 and it follows the same table as is applicable to others like employees.
15th July 2015 From India, Kannur
Hello Madam,
I read the above thread regarding professional tax and had some queries. I am working as a resident doctor( trainee) in a private hospital in Kochi and getting stipend. My employer recently deducted RS. 1250/- from my stipend as professional tax. When I asked for a receipt,they plainly refused to give one. Should this tax be cut from my stipend and I am not even eligible for a receipt?
Is this tax to be taken from me as well as I am getting only stipend. Before this, I was working as a postgraduate in trivandrum medical college and never even once my tax was deducted. Moreover stipend is not taxable so should they deduct this professional tax from my stipend?
Your clarification would be of great help.
20th October 2015 From India, Chennai
Profession tax is not a tax on "salary" but it is on any income received and, therefore, stipend will attract profession tax. Now regarding receipt, it is not the employer who will issue the receipt but the Local administration, ie, Kochi Corporation, who will issue the receipt. It may also happen that the Corporation may issue one receipt for the entire amount paid by the employer on account of employees and in such cases individual receipts may not be available. You can also see that in your Income Tax form 16 issued by the employer the amount you have paid towards profession tax, Rs 2500 (1250 for half year) will be shown as deduction from the salary income. This will support your stand of having paid the profession tax.
21st October 2015 From India, Kannur
Dear Madhu,
I have one doubt. If employee works for say 4 months in kerala than PT is to be deducted for 4month or 6 month.
Say Mr.X earning Salary of 125000 for for months than PT will be Rs. 832/- ( i.e. for 4 months ) or Rs. 1,250 /- ( i.e. for 6 months )
Can you please clarify above mentioned queries.
17th February 2016 From United Arab Emirates, Dubai
Take it on actual amount earned by the employee. If his earning/ revenue is Rs 125000 for four, he is liable to pay Rs 1250 because he will come under the slab VII, income exceeding Rs 125000 per half year the Pt is Rs 1250.
There is no profession tax of Rs 832
18th February 2016 From India, Kannur
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