All the employees of private limited companies registered in some states of India are required to pay a specific sum of money to the state government in the form of professional tax. It is essential to understand that very few Indian states have made regulations to collect occupational taxes. Is your business located in one of these states? Well, you must find out.
Do not make it complex
Professional tax registration is not a very complicated process once you get to know about it. Lack of information can cause some confusion, but you can easily avoid it by hiring a qualified chartered accountant. It is best that you find out whether your state government has made it compulsory to pay professional tax.
Certificate of registration is the first step
If you are a private limited company based in a state which levies a professional tax, you must apply for a license before the professional tax officer. If you do not ask for registration, you will become a tax defaulter. If none of your employees receives a salary of more than 5000 rupees per month, then you do not need to pay PTEC mandatorily. But the payment of PTRC is compulsory for all private limited companies in specific States.
PT is not easily avoidable
In the case of most companies, the chances of employees receiving more than rupees 5000 as salary is pretty high. So, so they should apply for a certificate of registration of professional tax. You will need a proof of address, record of accounting, along with documents to prove the exact date when you started your business. Absence of documents will lead to rejection of the application. If you are applying after substantial time has passed from the date of start, then fines will be waiting for you.
Keep documents nearby
You should also keep in mind that for successful registration you will require details of the salary that you have paid to your employees. Without the documents stated above, the process of filing will not be completed.
Stay away from penalties
If your company fails to pay professional tax on time, the state government may penalise you for the same. Delay in the submission of returns will also expose you to payment of fines. Hence, it is best to avoid penalties and additional penalties by paying your taxes on time. You can employ the services of a chartered accountant to handle the filing of professional tax.
Prepare your application correctly
All private company owners must make sure that their application is not defective. When you apply for registration before the professional tax officer, you should file with all the appropriate documents.
Your CA at your service
Your chartered accountant should tell you about the registration fees and all the relevant documentation. It is vital that you apply soon after your business is registered and starts operating. The longer you take to implement the higher will be the chances of penalties and fines. You can also search online to find out about all the steps involved in the process.