Professional Tax Karnataka

Professional Tax Karnataka

Profession tax is imposed by the state governments in India. Any individual earning an income from salary or any individual, Sole Proprietor, Partnership Firm or company practicing Professions, Traders Callings and Employments Act, 1976, are required to pay professional tax. Different states have different rates and methods of collection. In India, profession tax is imposed at the state level, however, not all states impose this tax.

There are two types of registration.

E.C : Enrolment Certificate

Every person liable to pay tax under this Act (other than a person earning salary or wages, in respect of whom the tax is payable he his employer) shall obtain a certificate of enrollment from the prescribed authority in the prescribed manner. This registration is for Employer and tax need to be paid annually. After registration, the certificate needs to be renewed every year.

R.C : Registration Certificate

Every employer not being an officer of Government liable to pay tax under section – 4 shall obtain a certificate of registration from the prescribed authority in the prescribed manner. This registration is for the Employee of the company whose Gross salary is above 15,000 per month. It is the employer's responsibility to deduct the Professional Tax from Employee and remit the same to the Government monthly. There are monthly returns to be filed after registration, failing which, interest and penalty will be levied.

Documents for both EC & RC Registrations :

For Sole Proprietor :

  • Copy of PAN Card of the proprietor.
  • Copy of Aadhar Card of the proprietor.
  • 1 Passport size photo of the proprietor.
  • Copy of Rental Agreement of Business Premises.
  • Copy of latest electricity bill or Property Tax paid receipt of the premises.
  • Latest one month current account statement.
  • List of employees whose salary is above 15,000 with Employee Name, Date of Joining, Monthly Gross salary details in excel sheet

For Partnership Firm :

  • Copy of Partnership PAN Card.
  • Copy of Form – C Registration.
  • Copy of Partnership Deed.
  • Copy of Rental Agreement of Business premises.
  • Copy of latest electricity bill or Property Tax paid receipt of the premises.
  • Copy of PAN Card of all the Partners.
  • Copy of Aadhar Card of all the Partners.
  • Passport size photo of all Partners- 1 each.
  • Latest one-month current account statement.
  • List of employees whose salary is above 15,000 with Employee Name, Date of Joining, Monthly Gross salary details in excel sheet

For Limited Liability Partnership :

  • Copy of LLP PAN Card.
  • Copy of Incorporation Certificate of LLP.
  • Copy of LLP Agreement.
  • Copy of Rental Agreement of Business Premises.
  • Copy of latest electricity bill or Property Tax paid receipt of the premises.
  • Copy of PAN Card of all the Partners.
  • Copy of Aadhar Card of all the Partners.
  • Passport size photo of all partners- 1 each.
  • Latest one-month current account statement.
  • List of employees whose salary is above 15,000 with Employee Name, Date of Joining, Monthly Gross salary details in excel sheet.

For Company :

  • Copy of Company PAN Card.
  • Copy of Incorporation Certificate.
  • Copy of MOA and AOA.
  • Copy of Rental Agreement of Business Premises.
  • Copy of latest electricity bill or Property Tax paid receipt of the premises.
  • Copy of PAN Card of all the Directors.
  • Copy of Aadhar Card of all the Directors.
  • Passport size photo of all Directors- 1 each.
  • Latest one-month current account statement.
  • List of employees whose salary is above 15,000 with Employee Name, Date of Joining, Monthly Gross salary details in excel sheet.

Procedures :

  • Collection of Documents
  • Preparation and submission of Application
  • Verification by concerned authority
  • Submission of further documents, if any required by the authority on verification. It must be noted that it is Client / Company's responsibility to provide the required or requested documents from the authorities.
  • Approval

Time :

  • Professional Tax Employer – 1 to 3 Working Days.
  • Professional Tax Employee – 5 to 10 Working Days.

Fees :

Professional Tax Employer :

  • Sole Proprietorship – ₹3,500
  • Partnership – ₹1,500 for each partner.
  • Limited Liability Partnership – ₹4,000
  • Company– ₹4,000

Professional Tax Employee :

  • Sole Proprietorship – ₹5,000
  • Partnership – ₹5,000
  • Limited Liability Partnership – ₹6,000
  • Company – ₹6,000

Proceed