Professional Tax- Resigned Employees

Dear All,

We are Design Consultants and we want to know about Professional tax. We are not registered for Professional tax since we started the firm in the year 2010.

What is the procedure for registration for PT and payment of arrears (due). Is it necessary to pay for the resigned employees also. Or is it only for the present employees who is working. And what is the penalty that has to be paid along with the professional tax. We were not aware of it and we received a notice to pay the Professional tax recently.

If present employees are working for a period more than 3 years, What is the penalty that has to be paid for those employees.

We have our Service Tax registration from the year 2010.

Our major doubt is about the resigned employees since we dint deduct any tax from the salary paid. And there are few employees who worked less than 6 months. What has to be done in that case ?

And there is no proper details regarding the Professional tax anywhere. Please help us with the information and your suggestion.

Thanks in advance

Which state are you in ?
As a general rule, all businesses need to pay professional tax
- for all employees (every month)
- for partners / directors (once a year)
- for the company / form (once a year)
The amount is payable from the time the business starts.
So, if you have got a notice, you will need to pay with retrospective effect.
You will need to pay even for those who have left and those who worked even for a month.
However, (in Maharashtra) you do not need to pay for those whose salary is less than ₹7500 per month. Each state has its own slabs.
You can go to the concerned officer and speak to him. Generally, they will be willing to negotiate the penalty and even give a staggered payment option against some under table cash. If you are not comfortable dealing with such things, ask a consultant to do it.
Thereafter, ensure you pay on time.

Dear Mr.Pra------------
Mr.Banerjee is well explained to your querry. I agree with his suggestions. As rightly pointed out by Mr.Banerjee, you have not stated the state from which your company belongs and located. The professional tax is fixed by the state government and it differs from the state to state and not common for all the states of India. We have been frequently telling all the readers/writers to come out with the genuine facts and submit us the full details and feed back to enable us to reply your query in a better way.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant