Professional Tax Registration Maharashtra | The Complete Guide

The state government levies a professional tax on professions, trades, and employment, which is for salaried employees and professionals such as chartered accountants, lawyers, and doctors. Article 276 of the Indian Constitution grants the state government the authority to collect professional taxes. In fact, professional tax registration Maharashtra is mandatory for all the above.

Professional tax is levied on all types of individuals, whether salaried or non-salaried, according to the Maharashtra State Tax on Professions, Trades, Callings, and Employment Act, 1976.

In Maharashtra, professional tax is imposed on both individuals and businesses.

Also, the professional tax registration Maharashtra is done along with your company registration application by your agent.

In the case of employment, the professional tax is deducted by the employer at the time of wage payment. The professional tax rate is determined by the state in which the employee is doing his job.

The state government collects professional taxes in a variety of ways, including through a distinct department or the Municipal Corporation / Panchayat.

To avoid a penalty, any individual or employee in Maharashtra must pay the required amount of professional tax. The individual or employee must get an enrolment certificate for professional tax payment in Maharashtra for this reason.

Who is the main regulatory authority for professional tax?

The Maharashtra State Tax on Professions, Trades, Callings, and Employment Act, 1976 is the main act that governs professional tax in Maharashtra. All entities, persons, and corporations in Maharashtra would have to pay professional tax in accordance with the state’s requirements.

Maharashtra’s Professional Tax Benefits

The advantages of professional taxation in Maharashtra are as follows:

Compliance with the laws- Any individual who pays a particular amount of professional tax is in compliance with Maharashtra’s rules.

Government Collections- The government would have a set quantity of collections if professional taxes were paid correctly in Maharashtra.

Professional Tax Registration Maharashtra Obligations

For Individuals

Individuals must get a Certificate of Enrollment from the Maharashtra Professional Tax Authority before engaging in any profession, trade, calling, or employment.

Individual tax liabilities can cancel for a period of five years after receiving a certificate by paying a lump sum amount equivalent to the four-year Profession Tax amount in advance.

It will absolve you of a year’s worth of payments. Senior adults (over 65), handicap people (with a 40% disability), and parents of physically disable or mentally retard children are exempt from the law.

For Organization

It is mandatory for the employer organisation to register them and receive a registration certificate under the professional tax legislation. So, tax deducted from employees can be paid.

Maharashtra’s Professional Tax Registration Procedure

• Go Online- The applicant must first go to the website https://www.mahagst.gov.in/en/ to register (Department of Goods and Service Tax). The candidate must then select Other Acts Registration.
• Click on New Registration- The applicant must click on new registration in the second step, and they will be led to another website. The applicant must read the guidelines and materials that must be posted on this page. Click on the new dealer if you are a new dealer.
• Offer Information- The applicant must provide information about his or her PAN and TAN numbers. After that, the applicant’s registered mobile number and email address will receive an activation link. The applicant would obtain new login credentials as a result of this.
• After that, the applicant must return to the home page and select e-services, then Vat and associated acts. Also, the applicant must change his or her password. After that, the applicant must make sure that the ‘new registration’ button is selected. Following this, the applicant must select Maharashtra State Tax on Professions, Trades, Callings, and Employments Act, 1975 from the drop-down menu. The applicant would be given Form II.
• Provide the applicant’s personal information. For example, electricity and rent-related utility information can be of benefit. The applicant will also have to furnish bank information.
• The applicant is responsible for entering the entry number and category. The applicant’s category would list in the applicable annexure.
• Upload Documents- After that, the applicant must upload a scanned copy of the documents to the Maharashtra professional tax web portal.
• Secure the Unique Enrolment Certificate- The applicant will receive an acknowledgement and a unique enrolment certificate in the final step.

Certificate of Registration Issued After Verification

The Registering Authority will generate a TIN if the application is correct and full in all respects, together with any applicable papers.

If the application qualifies for registration, the date of uploading the application will help to determine the effective date of the RC Registration certificates. Also, it will be provided through email and postal mail.

Applicants will not need to visit MSTD offices to obtain Registration Certificates because they will be made available on the portal in downloadable format with the necessary certifying authority’s digital signature.

Professional tax documents necessary in Maharashtra

• Aadhaar Card copy
• Cancelled Cheque
• Pan of the assessee
• Utility bills, such as water or electricity
• Business-related information (Date of Commencement)
• Passport size photo
• Employees on the Job
• Date of business start-up
• Email address
• Phone number of the individual

Professional Tax Return (Redrafted)

If there has been an omission or an incorrect statement, an amendment to a professional tax return can file in Maharashtra.

A revised return, on the other hand, can file before a notice of assessment issues or before the six-month period following the end of the year in which the professional tax return was due has expired.

What is the Maharashtra Professional Tax payment deadline?

In Maharashtra, professional taxes are paid based on enrolment. If you enrol before the start of the school year on or before May 31st, the deadline is June 30th. If the entity enrols after May 31st, the professional tax must submit within one month of the date of enrolment in Maharashtra.

Punishment Provisions for Professional Tax

Non-compliance with Maharashtra’s Professional Tax laws can result in severe fines and penalties.

If you do not obtain a Professional Tax Registration, you will be subject to a penalty.

A penalty of Rs. 5 per day for an employer and Rs. 2 for a person if you do not have professional tax registration.

If you pay your professional tax late, you will be penalised.

In the event that professional tax is not on time, a penalty of 10% of the tax imposes. In addition, late payments may be subject to interest of up to 1.25 per cent each month. If a person or an employer does to comply with the Maharashtra Professional Tax Act, the authority may issue a penalty of up to Rs.5000.

The penalty for failing to file a professional tax return on time

A penalty of Rs.1000 is imposed if a professional tax return is filed late. The penalty is in addition to the sum for return.

Frequently Asked Questions

What are the Professional Tax Slabs in Maharashtra?

Every financial year, the states in India adjust their professional tax rates. The professional tax slab rates for salaried and self-employed professionals in Maharashtra are listed below.

• If the monthly gross salary is up to Rs.7500/-, the tax is NIL.
• The monthly gross salary is Rs.7501/- to Rs.10,000/-, the tax is Rs. 175.
• If the monthly gross salary is above Rs. 10,000/-, the tax is Rs.200 per month and Rs.300 for February month.

Maharashtra’s state government has recently introduced a specific benefit for female professionals. Women employees earning up to Rs.10,000 per month will not be required to pay professional tax on their remuneration, according to the rule. This exemption took place in the 2015-2016 fiscal year.

What is the difference between enrolment and registration?

Registration is the process by which an applicant obtains professional tax registration in Maharashtra. Enrollment is the process of obtaining a certificate of enrollment for new professional tax registration.

Also you can go for company registration in Mumbai.

In Maharashtra, where do I file my professional tax application?

Professional tax applications must submit online.

Is it necessary for me to be there in person for Maharashtra professional tax registration?

No, the entire procedure of registering for professional taxes in Maharashtra is online. It would not be necessary for the applicant to be there in person.