Professional tax registration
A state levy on trades and salaries, with two separate registrations that most employers only discover one of.
What the fee covers
- State applicability check
- Enrolment certificate application
- Employer registration application
- Slab and deduction schedule setup
- Certificate handover with the return calendar
Professional fee
1,999
professional fee, state charges at actuals
- Timeline
- 5 to 10 working days
- Filed with
- Commercial taxes department of your state
Small money, real penalties
Professional tax is capped by the Constitution at 2,500 rupees per person per year, so nobody is ruined by the tax itself. What catches employers is the penalty and interest on years of deducting without registering, or of not deducting at all.
There are two registrations and most employers only know about one. The enrolment certificate is the business paying its own liability; the registration certificate is the business deducting from salaries and paying that over. In a levying state you generally need both.
Best suited to
- Employers in a state that levies professional tax
- Professionals and traders who need the enrolment certificate
- Businesses opening a branch in a new state
- Companies that have been deducting without registering
Documents you need
- PAN of the business and of the proprietor, partners or directors
- Certificate of incorporation or partnership deed
- Proof of the place of business with a no objection letter
- Employee list with monthly salary details
- Bank account details and a cancelled cheque
- Digital signature of the authorised signatory
Scanned copies are enough to begin. We check every document against the department's current format before filing, because a rejected form costs more time than a resubmitted scan.
How the filing runs
Get free consultationCheck whether your state levies it
Roughly half the states do. Delhi, Haryana, Punjab, Rajasthan, Uttar Pradesh and several others do not, so this can be a very short conversation.
Work out which registrations apply
The enrolment certificate covers the business itself. The registration certificate lets you deduct from employees. Most employers need both.
Filing
The application goes to the state commercial taxes portal with the employee schedule attached.
Certificate and deduction cycle
You receive the certificates and a note on the slab, the deduction dates and the return frequency your state runs.
What it costs
1,999
professional fee, state charges at actuals
Typical timeline: 5 to 10 working days
Get free consultationTen percent below any comparable quote
Send us a written quote from another online filing platform for the same scope of work. We do the same filing for ten percent less, and the difference is shown in your quote before you pay anything.
- Applies to professional fees on like for like scope and turnaround
- Government fees and stamp duty are statutory and are charged at actuals by everyone
- The quote you send has to be current and in writing
Professional tax by city
Local rules, jurisdiction and fee slabs for the city your office sits in.
North
South
Professional tax questions
Which states levy professional tax?
It is a state subject, so it varies. Maharashtra, Karnataka, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Gujarat, Madhya Pradesh, Odisha, Kerala, Bihar, Jharkhand and Assam levy it. Delhi, Haryana, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Chandigarh and Goa do not.
How much professional tax can be charged?
The Constitution caps it at 2,500 rupees per person per year, so it is never a large amount. What it does carry is a penalty for not registering, which is why it is worth doing rather than ignoring.
What is the difference between the two certificates?
The enrolment certificate is the business paying its own professional tax. The registration certificate is the business deducting professional tax from employee salaries and paying it over. An employer in a levying state generally needs both.
We have been paying salaries without registering. What now?
Register and regularise. States charge interest and a penalty on the arrears, and the exposure grows the longer it runs. We calculate the position first so you know the number before we file.
Talk to a CA about professional tax
Send your details and a chartered accountant calls you back with the document checklist, the timeline and the exact cost for professional tax.
Reach us directly
22-1-3 Rajapangal Road, 7th Line, Ongole, Andhra Pradesh 523001. The office is open 10am to 7pm, Monday to Saturday, and WhatsApp and phone are answered around the clock.