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.
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Sl. No. |
Description |
Tax Per month (PM) |
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or Per Annum (PA) in(Rs) |
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Salary and wage earners whose monthly salaries or wages in Rs: |
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1. |
(i) Up to 15,000 |
Nil |
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(ii) From 15,001 to 20,000 |
150 PM |
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(iii) Above 20,000 |
200 PM |
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Legal practitioners, Solicitors, Notaries, Tax Consultants, |
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Chartered Accountants, Technical and Professional Consultants, |
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Engineers, RCC Consultants, Architects, Management Consultants, |
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Estate Agents, Chief Agents, Principal Agents, Special Agents, |
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Insurance Agents, Surveyors or Loss assessors registered or |
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licensed under the Insurance Act, 1938 (Central Act IV of 1938), |
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Pigmy Agents, UTI agents, Authorized assistants and Sub |
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2. |
brokers recognized by SEBI, Commission Agents, Dalals, Brokers, |
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Auctioneers, Medica Practitioners, Journalists, Medical Consultants |
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(Other than Practitioners of Ayurvedic, Homeopathic and Unani |
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systems of Medicines), Dentists, Radiologists, Pathologists and |
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persons engaged in other similar professions or callings of a |
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Paramedical nature, whose standing in the profession is: |
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(i) Up to 5 years |
Nil |
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(ii) More than 5 years |
2500 PA |
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3. |
Members of Stock-Exchanges recognized under Security Contracts |
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(Regulation) Act, 1956 |
2500 PA |
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Contractors scoring annual turnover as under: |
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4. |
(a) Below Rs.10 lakhs |
Nil |
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(b) From Rs.10 lakh to Rs.50 lakhs |
1250 PA |
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(c) Above Rs 50 lakhs |
2500 PA |
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Directors drawing remuneration from the company |
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5. |
(other than those nominated by the Government) |
2500 PA |
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of Companies Registered under the Companies Act,1956 |
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1 | P a g e
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Sl. No. |
Description |
Tax Per month (PM) |
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or Per Annum (PA) in(Rs) |
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(i)Race horse owners, Trainers and Book Makers |
2500 PA |
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6. |
licensed by the Turf clubs of Hyderabad Race Club |
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or any other Race club. |
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(ii)Jockeys licensed by the Turf clubs. |
1250 PA |
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Persons employed in the motion picture industry namely:- |
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(i)Film Producers, Film Distributors, Film Directors, |
2500 PA |
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Cinematograph Film Processors, Directors of Photography, Music |
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Directors, Choreographers, Lyricists, Actors and Actresses, |
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7. |
Story writers, Play-back singers, Recordists, Editors, Owners or |
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Lessees of outdoor film units. |
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1250 PA |
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(ii) Assistant Music Directors, Assistant director of Photography, |
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Cameraman, Still photographers, Junior Artists, Production |
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Managers, Assistant Directors, Assistant Cameraman, Assistant |
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Recordists, Assistant Editors, Musicians and Dancers. |
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APVAT registered Dealers or Dealers liable to be Registered under |
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APVAT Act 2005 including FP shop dealers, Shopkeepers |
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(Employers) of establishment as defined under AP Shops and |
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8. |
Establishment Act 1988 whose annual business turnover is Rs: |
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(i) Below Rs.10 Lakhs |
Nil |
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(ii) From Rs.10 lakhs to Rs.50 lakhs |
1250 PA |
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(iii) Above Rs. 50 lakhs |
2500 PA |
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Owners or Lessees of factories as defined under the Factories |
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Act, 1948 with annual turnover as follows: |
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9. |
(i)Below Rs.10 Lakhs |
Nil |
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(ii) From Rs.10 lakhs to Rs.50 lakhs 1250 PA |
1250 PA |
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(iii) Above Rs 50 lakhs 2500 PA |
2500 PA |
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10. |
Owners or Lessees of Petrol/Diesel/Gas filling stations and Service |
2500 PA |
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stations, Garage and Workshops of automobiles. |
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11. |
Owners or Lessees of Nursing Homes or Hospitals other than |
2500 PA |
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those run by the State, Local Bodies or Central Government. |
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12. |
Owners or Lessees of Pathological Testing Labs, X Ray Clinics and |
2500 PA |
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Medical Diagnostic Centers. |
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13. |
Owners or Lessees of Beauty Parlours/Saloons and Interior |
2500 PA |
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Decorators. |
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Owners or Lessees of Hotels, Restaurants, Bars or Lodging Houses |
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having annual turnovers as follows |
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14. |
(i) Below 10 Lakhs |
Nil |
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(ii) From 10 lakhs to 50 lakhs |
1200 PA |
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(iii) Above Rs 50 lakhs |
2500 PA |
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2 | P a g e
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Professional Tax |
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SBS Interns' Digest |
www.sbsandco.com/digest |
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Sl. No. |
Description |
Tax Per month (PM) |
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or Per Annum (PA) in(Rs) |
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Owners or Lessees or operators of Convention Centers, Cinema |
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15. |
theatres, Amusement Parks, Clubs, Resorts, Video parlours, Master |
2500 PA |
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Cable TV, Cable TV, DTH, Video games and Computer Games |
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(i) Holders of permits of less than Three(3) transport vehicles |
Nil |
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(other than auto-rickshaws) granted under the Motor Vehicles Act, |
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16. |
1988.. |
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(ii) Holders of permits of Three( 3) or more transport vehicles |
2500 PA |
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(other than auto-rickshaws) granted under the Motor Vehicles Act, |
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1988. |
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Money lenders, licensed under the law relating to money lenders, |
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17. |
Micro Finance Institutions(MFIs) and Individuals or institutions |
2500 PA |
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conducting/running Chit Funds. |
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18 Co-operative Societies registered under the A.P. Co-operative |
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Societies Act, 1964 and engaged in any profession, trade or calling: |
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18. |
(i) Village and Mandal level societies. |
Nil |
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(ii) District Level societies. |
1250 PA |
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(iii) State level societies. |
2500 PA |
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Banking Companies as defined in the Banking Regulations |
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Act, 1949 including its each branch/ATM/extension counter in |
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addition to the area Office/Zonal Office/Head Office. |
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Explanation: |
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19. |
For the purpose of this entry “Banking Companies” shall mean and |
2500 PA |
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include any bank, which came into existence after the year 1949 |
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through separate Act but whose operations are Governed by the |
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provisions of the Banking Regulation Act, 1949 (Central Act 10 of |
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1949) irrespective of how the bank(s) came into existence. |
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All Companies registered under the Companies Act, 1956, not |
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20. |
being a dealer under APVAT Act 2005 and engaged in a profession, |
2500 PA |
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trade or calling with turnover of Rs. 10.00 lakhs and above. |
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21. |
Each partner of a firm drawing remuneration from the firm |
1250 PA |
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engaged in any profession, trade or calling. |
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22. |
Travel Agencies |
2500 PA |
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23. |
Advertising Firms/Agencies |
2500 PA |
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Persons using Photocopying machines for job works: |
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24. |
(I) Less than 3 Photocopying machines. |
Nil |
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(ii) Three or more number of Photocopying machines. |
1250 PA |
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25. |
Video Cassette, DVD, CD Libraries. 1250 PA |
1250 PA |
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3 | P a g e
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Professional Tax |
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SBS Interns' Digest |
www.sbsandco.com/digest |
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Sl. No. |
Description |
Tax Per month (PM) |
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or Per Annum (PA) in(Rs) |
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Each branch and Head Office of Educational Institutions and |
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26. |
Tutorial Colleges or such other Institutes other than those owned |
2500 PA |
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by the State, Local Bodies or Central Government. |
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Institutes such as Motor Driving Institutes, Technical Training |
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Institutes, Computer Institute selling time, Computer training |
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27. |
Institute, Typewriting and shorthand training Institutes by |
2500 PA |
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whatever name they are called other than those owned by State or |
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Central Government. |
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28. |
Property Developers including Land Developers and Building / Flat |
2500 PA |
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Developers. |
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29. |
Owners or Lessees of Marriage Halls/Kalyana Mandapams/ |
2500 PA |
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Auditorium/Convention Halls. |
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30. |
Transport Companies and Transport contractors including |
2500 PA |
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Forwarding and Clearing agents. |
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31. |
Weigh Bridge Operators |
1250 PA |
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32. |
Courier Service Operators |
2500 PA |
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33. |
Broadcasting and Telecasting Service Providers other than Central |
2500 PA |
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Government or State Government agencies. |
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Mobile phone or fixed line phone service providers, Internet |
2500 PA |
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34. |
Service Providers, Leased Lines Service providers, VSAT Service |
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Providers and Wireless Service Providers. |
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35. |
Owners of Call centers and BPO/KPO Centers. |
2500 PA |
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ISD, STD and PCO Operators , other than Government or physically |
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36. |
challenged persons, with: |
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(i) One Telephone line |
Nil |
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(ii) More than one Telephone line |
1250 PA |
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37. |
Cyber Cafes. |
2500 PA |
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Owners or Lessees of premises, rented or leased out for |
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38. |
commercial or industrial purposes, other than those owned by |
2500 PA |
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State, Local Bodies or Central Government Agencies. |
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4 | P a g e
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Professional Tax |
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SBS Interns' Digest |
www.sbsandco.com/digest |
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Sl. No. |
Description |
Tax Per month (PM) |
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or Per Annum (PA) in(Rs) |
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1.Agriculturalist, 2. Persons engaged in performing religious duties, |
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3. Skilled persons that is to say Gold Smith, Black Smith, Pot Maker, |
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39. |
Basket Maker, Washerman, Barber, Cobbler, Tailors, Carpenters, |
2500 PA |
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Masons, Plumbers, Book Binder, Toddy Tappers and Electricians |
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4. Physically Handicapped persons with 40% or more disability of |
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any kind, 5. Dry Cleaners. |
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Persons, other than those mentioned in any of the preceeding |
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entries, who are engaged in any profession, trade or calling or |
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40. |
employment with annual income of more than Rs 1,80,000/- but |
2500 PA |
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excluding those who are exempted under Section 31 of the Act and |
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Entry No. 39 above. |
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Benefits: |
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- As per Section 16(iii) of income tax Act, Deduction is available for the respective year only if PT is paid.
- 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.
- 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:
- 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.
- He has to furnish a return to the tax department in the prescribed form within the specified time.
- 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:
- Log in to https://apct.gov.in/APPT_Enterprise/Registration/Email_Login.aspx.
- Click on New USER SIGN UP HERE!!
- Provide the Official Mail Id and create Password and Click Submit Button.
5 | P a g e
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Professional Tax |
SBS Interns' Digest www.sbsandco.com/digest
- CT department will send the automated password to your mail id.
- 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.
- 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.
- It will ask Additional places of Business, we have to fill the address where it is located.
- 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.
- 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.
- If the company is already registered with Commercial tax department then there is no need to provide the documents while getting the PT certificate.
- 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 :
- We can pay through online inhttps://apct.gov.in/apportal/DlrServices/Payments/e-Payment General.aspx Or else by Cheque or Demand Draft.
- We can file the returns in the prescribed format of Form – V manually or in online using the PTIN and registered Mail id.
- Due date for filing of monthly returns by 15th day from the succeeding Month.
Penalities
- 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.
- Normally, if you fail to file the return in a specified period, penalty up to Rs.100/- for each day of delay.
- 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