5 Employees - Is Professional Tax Is Applicable? - PDF Download

HI,
we started a new company with team size of 5no's in Andhrapradesh..up to my knowledge PF / ESIC Wont applicable , due to less employees.
i have a small doubt that, is Professional tax is applicable ? what was the eligibility for getting professional tax. is there any specific limit for getting PT.(Like how many employees mandatory for PT Deduction)
any one can help on this...
Thanking you..
suneetha
HR

Dear Suneetha Ji,

- Professional Tax is a tax imposed by the State Governments of India on salaried individuals, working in government/ non-government entities, or in the practice of any profession, including Chartered Accountants, Doctors, Lawyers, etc.

-This type of tax is in implementation for a long time and States were conferred the power of leveling the Tax under Clause (2) of Article 276.

-The rate at which Profession tax charged is based on the Income Slabs set by the corresponding State Governments.

-The maximum Professional Tax that can be imposed by any State in India is Rs 2500/-.for the Financial Year 2016-17.

-Professional Tax is deducted by the employers from the salary of the salaried employees, and same is deposited with the State Government. For other individuals, they have to pay directly it to the Government or through the Local Bodies appointed to do so.

-The Professional Tax in India is applicable for Andhra Pradesh, Assam, Bihar, Chattisgarh, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Tamil Nadu, Telangana, Tripura, West Bengal.

&&& Professional Tax Slab – Andhra Pradesh:

Monthly Salary Professional Tax (P.M)

Up to Rs. 15,000/- NIL.

Rs. 15,001/- -Rs. 20,000/- Rs.150

Rs. 20,001/- or Above Rs. 200

-States exempted from Professional Tax are listed below.

Arunachal Pradesh.

Haryana.

Himachal Pradesh.

Jammu & Kashmir.

Punjab.

Rajasthan.

Nagaland.

Uttaranchal.

Uttar Pradesh.

-Union Territories exempted from Professional Tax are listed below.

Union Territory

Andaman & Nicobar.

Chandigarh.

Darda & Nagar Haveli.

Daman & Diu.

Delhi.

Lakshadweep.

Puducherry.

I hope it will be valuable for your queries .

Regards,

Amit

Applicability of Professional Tax as per the Constitution of India:
Article 276 of the Constitution of India provides that “there shall be levied and collected a tax on professions, trades, callings and employments, in accordance with the provisions of this Act. Every person engaged in any profession, trade, calling or employment and falling under one or the other of the classes mentioned in the second column of the Schedule shall be liable to pay to the State Government tax at the rate mentioned against the class of such persons in the third column of the said Schedule. Provided that entry 23 in the Schedule shall apply only to such classes of persons as may be specified by the State Government by notification from time to time.” i.e. there are no any mandatory rules about no.of employees.
It is a mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment

Hi Sunny,
Greetings of the day!!!
Enclosed herewith The Gujarat Tax on Professions, Trades, Callings and Employment Rules, 1976 act rules & forms for your ready reference.
You will get eligibility and other details in enclosed document and FAQ will help to solve your all queries.

Please check PT act of AP. In the beginning of the act it's applicability vis-a-vis manpower will be mentioned.