How to handle West Bengal Professional Tax (WB P-Tax) Notice? Do you know the difference between Enrollment and Registration?

How to handle West Bengal Professional Tax (WB P-Tax) Notice? Do you know the difference between Enrollment and Registration?

Professional Tax is collected by the State Government in pursuance of Article 276 of the Constitution of India. This tax is levied on any person who is engaged in conducting those Professions, Trades, Callings, and Employments which are specified in the Second Schedule of the act. After the introduction of Goods and Services Tax the State Department of Commercial Taxes are sending notices to the businessmen and professionals demanding payments of professional tax based on the amount of turnover declared in the annual returns. Thus, the businesses and professionals are facing issues in dealing with these. To help them with this issue we are coming forward with these educational articles.

What is the difference between Enrollment and Registration?

Enrollment is the signing up of the business or profession as a whole through which the business house or professional pays professional tax based on the annual turnover or annual income of its business or profession. The maximum tax payable by a single person is Rs. 2,500. (Two Thousands and Five Hundred). A Lawyer, Doctor, Director of a Company, Technical or Professional Consultants, Motor Vehicle Operators or Transports, Agents, etc. are required to pay professional tax if their Annual Income exceeds Rs. 60,000/- (Sixty Thousands Only). Along with this, businesses which are either covered under the Goods and Services Tax Laws or the State's Shops and Establishment Act or are covered under the Factories Act, etc. are required to pay professional tax if their Annual Gross Turnover or Annual Gross Receipts are greater than Rs. 5,00,000 (Five Lacs). A detailed schedule of the applicable taxes are given here for your reading. 

Registration is the act through which the Employer deduct and pay professional taxes on its employees. Under the act, employees earning a monthly wage up to Rs. 10,000 (Ten Thousands) is exempt. Any employee who earns monthly wages greater than Rs. 10,000 (Ten Thousands) is liable to get the tax deducted from its monthly salary by the employer who in turn is required to deposit the same to the State Government. A detailed schedule of the applicable taxes are given here for your reading. 

Are Directors of the company liable to pay professional tax?

YES! They are liable to pay professional tax if their Annual Gross Income from their directorship is greater than Rs. 60,000 (Rupees Sixty Thousands) in a year. Also, if they are receiving income as an Employee then they will not be covered under the act as Director but as an Employee.

Are Doctors required to pay professional tax?

YES! They are liable to pay professional tax if their Annual Gross Income from their directorship is greater than Rs. 60,000 (Rupees Sixty Thousands) in a year. In addition to Doctors, Medical Consultants like Physiotherapists, Psychologists, etc.