WEST BENGAL PROFESSIONAL TAX ENROLLMENT & REGISTRATION PROCEDURE:-
Profession
Tax is a tax levied on a person engaged in any profession, trade, calling and
employment in West Bengal. The West Bengal State Legislature enacted the “West
Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979” in
exercise of the power conferred by the Article 276 of the Constitution of India
(under Entry No. 60 of the “State List” relating to taxes on professions,
trades, callings and employments). The Act came into effect on and from
1-4-1979.
Article 276 of the Constitution of India
lays down 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.”
Who is liable to pay Professional Tax?
Levy base for the professional tax may be divided into two categories namely; PERSONS (engaged in professions, trades, calling and employments) and EMPLOYER (Government, Public and Private Sectors who disburse salary/wages to the employees).
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Concept Of Enrollment & Registration under WB Professional Tax structure |
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(A) Enrollment |
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Coverage |
Description |
Non-Compliance |
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Every person who is covered by entry number 2 to 4 of the Schedule forming part of the act and as modified vide Notification No.440-L-11th March, 2014 read along with Notification No.848-F.T.-28th May, 2014. |
· Certificate of Enrollment is to be obtained within 90 days from the date of liability to pay tax. Professional Tax liability has to be discharged first and challan evidencing payment has to be submitted to the prescribed authority along with application form.
· Application for enrollment is to made online through E -Form II.
· If an applicant has more than one branch or office or place of work in WB, has an option to make a single application covering the principal and the branch offices. |
· If a person willfully fails to apply for enrollment within 90 days from the date of liability to pay, penalty of Rs.100 per calendar month or part thereof may be imposed.
· Where a person liable for enrollment has deliberately given false information in any application submitted under this section, the prescribed authority may, after giving him a reasonable opportunity of being heard, impose upon him a penalty not exceeding rupees one thousand.
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Currently, 21 states in India impose professional tax. Article 276 of the Constitution of India which provides for levy of tax in respect of profession, trade, calling and employment also fixes a ceiling of Rs.2, 500 per taxpayer per annum. For some cities, professional tax is the most important source of income after property tax.
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(B) Registration |
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Coverage |
Description |
Non-Compliance |
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Every employer is liable to deduct profession tax from the salary or wages payable to his employee(s), as per the slab mentioned in Serial No.1 of the Schedule. Such employer (not being an officer of Government) is required to apply and secure a Certificate of Registration. |
· Certificate of Registration is to be obtained within 90 days from the date of liability to pay tax. Professional Tax liability has to be discharged first and challan evidencing payment has to be submitted to the prescribed authority along with application form.
· Application for enrollment is to made online through E- Form I.
· If an employer having more than one place of work within the jurisdiction of different authorities shall make separate application for registration. However, the Commissioner of Profession Tax may allow an application for single Registration for the whole of West Bengal. |
· If a employer willfully fails to apply for enrollment within 90 days from the date of liability to pay, penalty of Rs.500 per calendar month or part thereof may be imposed.
· Where an employer liable for enrollment has deliberately given false information in any application submitted under this section, the prescribed authority may, after giving him a reasonable opportunity of being heard, impose upon him a penalty not exceeding rupees one thousand.
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Pension granted to an employee is not salary and hence pensioners are not liable to pay Profession Tax on pension. In Chennai professional tax collection contributes Rs.200 crore annually to the state exchequer, half as much property tax. Profession tax contributes around Rs.90 crore to the revenues of Surat Municipal Corporation, around 30% of its property tax collection. The corresponding figure for Hyderabad is around Rs.100 crore.
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