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    Professional Tax

    Profession tax is a tax on income earned by way of profession, individual salaries/wages, on business owners and excluding the income from agriculture and blind people, are liable to pay the tax to the state government. 

    The maximum amount payable per year is Rs. 2,500/- and in line with tax player’s salary, there are predetermined slabs for the Andhra Pradesh government and the slab rates is differ from state to state and the Andhra Pradesh Slabs rates as below.

     

    Sl. No.

    Description

    Tax Per month (PM)

     

    or Per Annum (PA) in(Rs)

     

     

     

     

     

     

     

     

     

    Salary and wage earners whose monthly salaries or wages in Rs:

     

     

    1.

    (i) Up to 15,000

    Nil

     

    (ii) From 15,001 to 20,000

    150 PM

     

     

     

     

    (iii) Above 20,000

    200 PM

     

     

     

     

     

     

    Legal practitioners, Solicitors, Notaries, Tax Consultants,

     

     

     

    Chartered Accountants, Technical and Professional Consultants,

     

     

     

    Engineers, RCC Consultants, Architects, Management Consultants,

     

     

     

    Estate Agents, Chief Agents, Principal Agents, Special Agents,

     

     

     

    Insurance Agents, Surveyors or Loss assessors registered or

     

     

     

    licensed under the Insurance Act, 1938 (Central Act IV of 1938),

     

     

     

    Pigmy Agents, UTI agents, Authorized assistants and Sub

     

     

    2.

    brokers recognized by SEBI, Commission Agents, Dalals, Brokers,

     

     

     

    Auctioneers, Medica Practitioners, Journalists, Medical Consultants

     

     

     

    (Other than Practitioners of Ayurvedic, Homeopathic and Unani

     

     

     

    systems of Medicines), Dentists, Radiologists, Pathologists and

     

     

     

    persons engaged in other similar professions or callings of a

     

     

     

    Paramedical nature, whose standing in the profession is:

     

     

     

    (i) Up to 5 years

    Nil

     

     

    (ii) More than 5 years

    2500 PA

     

     

     

     

     

    3.

    Members of Stock-Exchanges recognized under Security Contracts

     

     

    (Regulation) Act, 1956

    2500 PA

     

     

     

     

     

     

     

     

    Contractors scoring annual turnover as under:

     

     

    4.

    (a) Below Rs.10 lakhs

    Nil

     

    (b) From Rs.10 lakh to Rs.50 lakhs

    1250 PA

     

     

     

     

    (c) Above Rs 50 lakhs

    2500 PA

     

     

     

     

     

     

    Directors drawing remuneration from the company

     

     

    5.

    (other than those nominated by the Government)

    2500 PA

     

    of Companies Registered under the Companies Act,1956

     

     

     

     

     

     

     

     

     

     

     

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    Sl. No.

    Description

    Tax Per month (PM)

     

    or Per Annum (PA) in(Rs)

     

     

     

     

     

     

     

     

     

    (i)Race horse owners, Trainers and Book Makers

    2500 PA

     

    6.

    licensed by the Turf clubs of Hyderabad Race Club

     

     

     

    or any other Race club.

     

     

     

     

     

     

     

     

    (ii)Jockeys licensed by the Turf clubs.

    1250 PA

     

     

     

     

     

     

     

    Persons employed in the motion picture industry namely:-

     

     

     

     

    (i)Film  Producers,  Film  Distributors,  Film  Directors,

    2500 PA

     

     

    Cinematograph Film Processors, Directors of Photography, Music

     

     

     

     

    Directors, Choreographers, Lyricists, Actors and Actresses,

     

     

     

    7.

    Story writers, Play-back singers, Recordists, Editors, Owners or

     

     

     

    Lessees of outdoor film units.

     

     

     

     

    1250 PA

     

     

    (ii) Assistant Music Directors, Assistant director of Photography,

     

    Cameraman,  Still  photographers,  Junior  Artists,  Production

     

     

     

     

    Managers, Assistant Directors, Assistant Cameraman, Assistant

     

     

     

     

    Recordists, Assistant Editors, Musicians and Dancers.

     

     

     

     

     

     

     

     

     

    APVAT registered Dealers or Dealers liable to be Registered under

     

     

     

     

    APVAT Act 2005 including FP shop dealers, Shopkeepers

     

     

     

     

    (Employers) of establishment as defined under AP Shops and

     

     

     

    8.

    Establishment Act 1988 whose annual business turnover is Rs:

     

     

     

     

    (i) Below Rs.10 Lakhs

    Nil

     

     

    (ii) From Rs.10 lakhs to Rs.50 lakhs

    1250 PA

     

     

    (iii) Above Rs. 50 lakhs

    2500 PA

     

     

    Owners or Lessees of factories as defined under the Factories

     

     

     

     

    Act, 1948 with annual turnover as follows:

     

     

     

    9.

    (i)Below Rs.10 Lakhs

    Nil

     

     

    (ii) From Rs.10 lakhs to Rs.50 lakhs 1250 PA

    1250 PA

     

     

    (iii) Above Rs 50 lakhs 2500 PA

    2500 PA

     

     

     

     

     

     

    10.

    Owners or Lessees of Petrol/Diesel/Gas filling stations and Service

    2500 PA

     

    stations, Garage and Workshops of automobiles.

     

     

     

     

     

     

     

     

     

    11.

    Owners or Lessees of Nursing Homes or Hospitals other than

    2500 PA

     

    those run by the State, Local Bodies or Central Government.

     

     

     

     

     

     

     

     

     

    12.

    Owners or Lessees of Pathological Testing Labs, X Ray Clinics and

    2500 PA

     

    Medical Diagnostic Centers.

     

     

     

     

     

     

     

     

     

    13.

    Owners or Lessees of Beauty Parlours/Saloons and Interior

    2500 PA

     

    Decorators.

     

     

     

     

     

     

     

     

     

     

    Owners or Lessees of Hotels, Restaurants, Bars or Lodging Houses

     

     

     

     

    having annual turnovers as follows

     

     

     

    14.

    (i) Below 10 Lakhs

    Nil

     

     

    (ii) From 10 lakhs to 50 lakhs

    1200 PA

     

     

    (iii) Above Rs 50 lakhs

    2500 PA

     

     

     

     

     

     

     

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    Professional Tax

     

     

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    Sl. No.

    Description

    Tax Per month (PM)

     

    or Per Annum (PA) in(Rs)

     

     

     

     

     

     

     

     

    Owners or Lessees or operators of Convention Centers, Cinema

     

     

    15.

    theatres, Amusement Parks, Clubs, Resorts, Video parlours, Master

    2500 PA

     

     

    Cable TV, Cable TV, DTH, Video games and Computer Games

     

     

     

     

     

     

     

    (i) Holders of permits of less than Three(3) transport vehicles

    Nil

     

     

    (other than auto-rickshaws) granted under the Motor Vehicles Act,

     

     

     

    16.

    1988..

     

     

    (ii) Holders of permits of Three( 3) or more transport vehicles

    2500 PA

     

     

     

    (other than auto-rickshaws) granted under the Motor Vehicles Act,

     

     

     

    1988.

     

     

     

    Money lenders, licensed under the law relating to money lenders,

     

     

    17.

    Micro Finance Institutions(MFIs) and Individuals or institutions

    2500 PA

     

     

    conducting/running Chit Funds.

     

     

     

     

     

     

     

    18 Co-operative Societies registered under the A.P. Co-operative

     

     

     

    Societies Act, 1964 and engaged in any profession, trade or calling:

     

     

    18.

    (i) Village and Mandal level societies.

    Nil

     

     

    (ii) District Level societies.

    1250 PA

     

     

    (iii) State level societies.

    2500 PA

     

     

     

     

     

     

    Banking Companies as defined in the Banking Regulations

     

     

     

    Act, 1949 including its each branch/ATM/extension counter in

     

     

     

    addition to the area Office/Zonal Office/Head Office.

     

     

     

    Explanation:

     

     

    19.

    For the purpose of this entry “Banking Companies” shall mean and

    2500 PA

     

     

    include any bank, which came into existence after the year 1949

     

     

     

    through separate Act but whose operations are Governed by the

     

     

     

    provisions of the Banking Regulation Act, 1949 (Central Act 10 of

     

     

     

    1949) irrespective of how the bank(s) came into existence.

     

     

     

     

     

     

     

    All Companies registered under the Companies Act, 1956, not

     

     

    20.

    being a dealer under APVAT Act 2005 and engaged in a profession,

    2500 PA

     

     

    trade or calling with turnover of Rs. 10.00 lakhs and above.

     

     

     

     

     

     

    21.

    Each partner of a firm drawing remuneration from the firm

    1250 PA

     

    engaged in any profession, trade or calling.

     

     

     

     

     

     

     

    22.

    Travel Agencies

    2500 PA

     

     

     

     

     

    23.

    Advertising Firms/Agencies

    2500 PA

     

     

     

     

     

     

    Persons using Photocopying machines for job works:

     

     

    24.

    (I) Less than 3 Photocopying machines.

    Nil

     

     

    (ii) Three or more number of Photocopying machines.

    1250 PA

     

     

     

     

     

    25.

    Video Cassette, DVD, CD Libraries. 1250 PA

    1250 PA

     

     

     

     

     

     

     

     

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    Sl. No.

    Description

    Tax Per month (PM)

     

    or Per Annum (PA) in(Rs)

     

     

     

     

     

     

     

     

    Each branch and Head Office of Educational Institutions and

     

     

    26.

    Tutorial Colleges or such other Institutes other than those owned

    2500 PA

     

     

    by the State, Local Bodies or Central Government.

     

     

     

     

     

     

     

    Institutes such as Motor Driving Institutes, Technical Training

     

     

     

    Institutes, Computer Institute selling time, Computer training

     

     

    27.

    Institute,  Typewriting  and  shorthand  training  Institutes  by

    2500 PA

     

     

    whatever name they are called other than those owned by State or

     

     

     

    Central Government.

     

     

     

     

     

     

    28.

    Property Developers including Land Developers and Building / Flat

    2500 PA

     

    Developers.

     

     

     

     

     

     

     

    29.

    Owners  or  Lessees  of  Marriage  Halls/Kalyana  Mandapams/

    2500 PA

     

    Auditorium/Convention Halls.

     

     

     

     

     

     

     

    30.

    Transport  Companies  and  Transport  contractors  including

    2500 PA

     

    Forwarding and Clearing agents.

     

     

     

     

     

     

     

    31.

    Weigh Bridge Operators

    1250 PA

     

     

     

     

     

    32.

    Courier Service Operators

    2500 PA

     

     

     

     

     

    33.

    Broadcasting and Telecasting Service Providers other than Central

    2500 PA

     

    Government or State Government agencies.

     

     

     

     

     

     

     

     

    Mobile phone or fixed line phone service providers, Internet

    2500 PA

     

    34.

    Service Providers, Leased Lines Service providers, VSAT Service

     

     

     

    Providers and Wireless Service Providers.

     

     

     

     

     

     

    35.

    Owners of Call centers and BPO/KPO Centers.

    2500 PA

     

     

     

     

     

     

    ISD, STD and PCO Operators , other than Government or physically

     

     

    36.

    challenged persons, with:

     

     

    (i) One Telephone line

    Nil

     

     

     

    (ii) More than one Telephone line

    1250 PA

     

     

     

     

     

    37.

    Cyber Cafes.

    2500 PA

     

     

     

     

     

     

    Owners  or  Lessees  of  premises,  rented  or  leased  out  for

     

     

    38.

    commercial or industrial purposes, other than those owned by

    2500 PA

     

     

    State, Local Bodies or Central Government Agencies.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

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    Professional Tax

     

     

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    Sl. No.

    Description

    Tax Per month (PM)

     

    or Per Annum (PA) in(Rs)

     

     

     

     

     

     

     

     

    1.Agriculturalist, 2. Persons engaged in performing religious duties,

     

     

     

    3. Skilled persons that is to say Gold Smith, Black Smith, Pot Maker,

     

     

    39.

    Basket Maker, Washerman, Barber, Cobbler, Tailors, Carpenters,

    2500 PA

     

    Masons, Plumbers, Book Binder, Toddy Tappers and Electricians

     

     

     

     

    4. Physically Handicapped persons with 40% or more disability of

     

     

     

    any kind, 5. Dry Cleaners.

     

     

     

     

     

     

     

    Persons, other than those mentioned in any of the preceeding

     

     

     

    entries, who are engaged in any profession, trade or calling or

     

     

    40.

    employment with annual income of more than Rs 1,80,000/- but

    2500 PA

     

     

    excluding those who are exempted under Section 31 of the Act and

     

     

     

    Entry No. 39 above.

     

     

     

     

     

     

    Benefits:

     

     

     

     

    1. As per Section 16(iii) of income tax Act, Deduction is available for the respective year only if PT is paid.

     

    1. If professional tax is paid by employer on behalf of employee, then first it is included in the salary of the employee as a “Perquisite” and then the same is allowed as deduction on account of “Professional Tax” from gross salary.

     

    1. There is no monetary ceiling under Income tax Act (under the Article 276, State government cannot impose more than Rs.2500 per annum as professional tax).Whatever professional tax is paid during the year is deductible.

     

    Responsibility:

     

    1. The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government department.

     

    1. He has to furnish a return to the tax department in the prescribed form within the specified time.

     

    1. The return should include the proof of tax payment. In case the payment proof is not enclosed, return shall be deemed incomplete and invalid.

     

    Registration Process:

     

    It is mandatory to take registration from the concerned department within 30 days of employing for business. If you have more than one place of work, apply separately to each authority as regards the place work coming under the jurisdiction of that authority.

     

    It is very simple online procedure to get registration from the professional tax department and same is as follows:

     

    1. Log in to https://apct.gov.in/APPT_Enterprise/Registration/Email_Login.aspx.
    2. Click on New USER SIGN UP HERE!!
    3. Provide the Official Mail Id and create Password and Click Submit Button.

     

     

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    Professional Tax

     

     

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    1. CT department will send the automated password to your mail id.

     

    1. Using the password to get enter in to the PT enrolment form and fill the prescribed format by entering client name , address, turnover details, EDR,TIN No, Service Tax No, Entry Class(depends on Profession), PTO circle , Local Bank Account Details.

     

    1. It will asks MD/owner/ Managing Partner details like name, DOB, Address, PAN No, Mobile No and Mail Id and it is Mandatory fields in the application in Online.

     

    1. It will ask Additional places of Business, we have to fill the address where it is located.

     

    1. Click Submit button. It Gives a Pop up “Successfully Registered the details” and take a Two copies of Print out and dully signed with Authorized signatory and Post it with relevant documents to PTO with Acknowledgment form.

     

    1. If we have to get registered with PT with in one or two days , Submit the documents with Personnel to the PT Officer or else it takes seven to nine days to get the certificate by POST from the department to the registered Office.

     

    1. If the company is already registered with Commercial tax department then there is no need to provide the documents while getting the PT certificate.

     

    1. After getting the PT Certificate, using PTIN number and registered Mail id will to get register in the Online for Login Credentials for filing of monthly returns and annual returns.

     

    PT Returns &Payments :

     

    1. We can pay through online inhttps://apct.gov.in/apportal/DlrServices/Payments/e-Payment General.aspx Or else by Cheque or Demand Draft.

     

    1. We can file the returns in the prescribed format of Form – V manually or in online using the PTIN and registered Mail id.

     

    1. Due date for filing of monthly returns by 15th day from the succeeding Month.

     

    Penalities

     

    1. If an assessee fails, without reasonable cause to make payment of any amount of tax within the time specified in the notice of demand, the assessing authority may, after giving him a reasonable opportunity of making his representation, impose upon him a penalty which shall not be less than twenty five percent but not exceeding fifty percent of the amount of tax due.

     

    1. Normally, if you fail to file the return in a specified period, penalty up to Rs.100/- for each day of delay.

     

    1. If you get delay in Where an assessee liable to registration or enrolment has willfully failed to apply for such certificate within the time, specified in sub-section (3), the assessing authority may, after giving him a reasonable opportunity of being heard, impose a penalty which shall not be less than rupees ten but which shall not exceed rupees twenty for each day of delay in case of any employer and not exceeding rupees five for each day of delay in case of others.

     

     

    “A wise man can learn more from a foolish question than a fool can learn from a wise answer.”

     

    – Bruce Lee

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