Professional Tax is a tax on any kind of profession, trade or employment. Some state governments including the State of Maharashtra have passed a law to improves professional tax on the assessee of professional tax. The Professional Tax is the applicable on salaried individual but the responsibility to collect tax and deposit the same is on the employer. The definition of employer and person is reproduced here under. need to register under professional tax in Maharashtra
“2(c) “employer” in relation to an employee earning any salary or wages on regular basis under him, means the person or the officer who is responsible for disbursement of such salary or wages and includes the head of the office of any establishment as well as the manage or agent of the employer;”
“(e) “person” means any person who is engaged activity or otherwise in any profession, trade, calling or employment in the State of Maharashtra, and includes a Hindu Undivided Family, firm, company, corporation or other corporate body, any society, club or association, so engaged, but does not include any person who earns wages on a casual basis;”
On a plain reading of above can be summarized under following table:
| S No. | Type of Person |
|---|---|
|
1. |
Every employer. |
|
2. |
Persons acting as Directors of the Companies, the Partner of a firm or designated partner and partners of Limited Liability Partnership (LLP). |
|
3. |
The persons like HUF, firm, Limited Liability Partnership (LLP), Company, Corporations, other Corporate bodies, any societies, Club or Association. |
|
4. |
Professionals like Legal Practitioners including Solicitors and Notaries, Medical Representatives including Medical Consultants and Dentists, Doctors, Chartered Accountant, Company Secretaries, Management Consultants, Architectures, Engineers, RCC Consultants, Tax Consultants, Insurance Agents. |
There are various other entities which is required to register itself under the Professional Tax laws of respective states in India and to pay the taxes on time and to file appropriate Professional Tax Return.