Confused About PT Payments: Should We Pay the Municipal Corporation or Gram Panchayat?

Dear Seniors, Here, we have paid monthly PT contributions to the Ahmedabad Municipal Corporation by properly filling up the PT challan. However, recently we have received a notice from the Ahmedabad Gram Panchayat office through the Talathi, stating that we have to obtain PT registration from the Gram Panchayat office and make the payment to them. I am confused about whom we should pay, whether to the municipal authorities or the Gram Panchayat authorities since our business unit falls under the Gram Panchayat jurisdiction.

Can anyone suggest which is the right authority in this case for PT remittance?

Best Regards,
Nilesh CB

If you are operating within the jurisdiction of the gram panchayat, you will be required to pay property tax to the gram panchayat. This tax is not applicable under the jurisdiction of the AMD municipality.

Thank you.

The Professional Tax is the revenue for the local body. If the establishment/firm/company is situated within the jurisdiction of a Gram Panchayat, then the Professional Tax has to be remitted to the respective Gram Panchayat only. Similarly, the registration under Professional Tax also needs to be done beforehand. In your case, if the Ahmedabad Corporation is not the appropriate authority, it seems. Therefore, please reply to the notice attaching the proof of past remittances made to the Ahmedabad Corporation and try to rectify or transfer to the Gram Panchayat.

Regards,
Kumar S.

Dear Kumar & Friends, That's what I want to confirm. If anyone has any circular/notification/by-laws details, kindly share them with us. I need to refer to the same while discussing with top management.

Regards,
Nileshcb

Almost everything is available on the Net. You should put some effort into tracing them. Here is the Act (Amendment) for the Original Act; it would be better if you could buy a Bare Act and keep referring to it together with these amendments. Keep them updated.

Regards,
Kumar.s.

Dear Kumar, thank you very much. I have gone through the internet details and found that in Gujarat, the professional tax shall be imposed by municipal authorities, municipality, and gram panchayat. However, I couldn't find the notification, circular, and by-laws. You have helped me a lot; now, I can confidently present to the top management and convince them through the details provided by you, which have no challenge but to follow the state rule. Thanks once again!

Best Regards,
Nilesh CB