‘Profession Tax’ WEST BENGAL PROFESSION TAX …

1 21 August, 2013 C. No. General Dear Sir, The State Government has sought the Chamber s views on PROFESSION Tax . Please find enclosed the attached note on west BENGAL PROFESSION TAX MADE EASY , as shared by the MSME Conclave Secretariat with us. Your feedback on the Note is required. Kindly mail us your feedback at or or fax at 2248- 8657. Your prompt response will be greatly appreciated. Thanking you, Regards Tuli Sengupta Roy Assistant Secretary west BENGAL PROFESSION TAX MADE EASY INTRODUCTION PROFESSION Tax is a tax levied on a person engaged in any PROFESSION , trade, calling and employment in west BENGAL .

2 The west BENGAL State Legislature enacted The west BENGAL State Tax on professions , Trades, Callings and Employments Act,1979 in exercise of the power conferred by the Article 276 of the Constitution of India under Entry No. 60 of the State List relating to taxes on professions , trades, callings and employments. The Act came into effect on and from Those who are liable to pay PROFESSION Tax under the act may be divided into two categories : i) Persons* engaged in professions , trades, callings and employments ii) Employer** (Government, Public and Private Sectors) Person means any person who is engaged in any PROFESSION , trade and calling or employment in west BENGAL and include (i) a Hindu Undivided Family, Firm, Company, Corporation or other Corporate body, any Society, Club or Association.

3 & (ii) every branch or office of such firm, company, corporation or other corporate body, any society, club or association, so engaged, but does not include any person who earns wages on a casual basis on being employed for a period not exceeding 180 days in a year. Employer means the person or the officer who is responsible for disbursement of salary or wages, and includes the head of the office or any establishment as well as the manager or agent of the employer. * A Person requires Certificate of Enrolment, Payment of Tax but no filing of Return ** An Employer requires Certificate of Registration, Payment of Tax and filing of Return ENROLMENT Every person who is covered by entry to 23 of the Schedule appended to the Act is required to obtain an Enrolment Certificate within 90 days from the date of liability to pay tax.

4 A person liable to pay tax shall apply in Form-II to the Deputy Commissioner / PROFESSION Tax Officer having jurisdiction, for enrolment along with the under noted documents : i) Copy of challan as proof of up-to-date payment of PROFESSION tax (with interest, if any) ii) Documents relating to Commencement of Business, Identity proof, Income Tax PAN card etc. Any person can also apply for enrolment in the Spot Enrolment Cell , located at Sales Tax Building (2nd building, 2nd floor); 14, Beliaghata Road, Kolkata 700015.

5 Here the Certificate of enrolment is issued on the same day. Again, application can also be made for enrolment online though Where an applicant has more than one branch or office or place of work in west BENGAL , he may, at his option, make a single application (in Form-II, along with the declaration appended in Annexure to Form-II) and submit the same to the concerned Joint Commissioner / Deputy Commissioner / PROFESSION Tax Officer in whose jurisdiction his principal place of business is situated In case a person is covered by more than one entry of the Schedule, the highest rate of tax specified under those entries will be applicable.

6 If a person willfully fails to apply for enrolment within 90 days from the date of liability, penalty of for delay of each English calendar month or part thereof may be imposed. In addition to this, there remains the provision of punishment with simple imprisonment with or without fine for the said default DETERMINATION OF TAX If an enrolled person fails to pay due tax or pay less than the amount actually payable by him, the concerned Deputy Commissioner / PROFESSION Tax Officer is to determine the tax payable by him after service of notice in Form-X.

7 If any person fails to get himself enrolled even after being liable to pay tax, the concerned Deputy Commissioner / PROFESSION Tax Officer is to determine the tax payable by him after service of notice in Form-XII. However, with effect from 01-04-2005, determination of tax of both un-enrolled and enrolled persons is limited to three years from the end of any year or period for which such determination is to be made. REGISTRATION Every employer is liable to deduct PROFESSION tax from the salary or wages payable to his employee(s), as per the slab mentioned in Serial of the Schedule Such employer (not being an officer of Government) is required to apply and secure a Certificate of Registration.

8 An application for registration is to be made in Form-I to the Deputy Commissioner / PROFESSION Tax Officer having jurisdiction, for registration. The application is to be made within 90 days from the date of liability. An employer having more than one place of work within the jurisdiction of different authorities shall make separate application for registration to each of such authorities. However, the Commissioner of PROFESSION Tax may allow an application for single Registration for the whole of west BENGAL .

9 If an employer willfully fails to apply for registration within 90 days from the date of liability, penalty of Rs 500 for delay of each English calendar month or part thereof may be imposed. In addition to this, failure to apply for registration is an offence punishable with simple imprisonment with or without fine. SALARY AND WAGES Salary and wages shall include - Pay, Dearness Allowance and any other amount paid by way of allowance, all remunerations received on regular basis whether payable in cash or kind; honorarium, perquisites and profit in lieu of salary as defined in Section-17 of the Income Tax Act, 1961; encashment of leave amount (excluding payable on retirement or on death of the employee); subsistence allowance, leave concessional pay.

10 Salary and Wage shall not include : Medical reimbursement, traveling allowance, reimbursement of conveyance charges, stipend paid to trainee, salary paid to apprentice under Apprentices Act, leave travel assistance payment, statutory Bonus, gratuity, lay of compensation and ex-gratia payment. Pension granted to an employee is not salary and hence pensioner are not liable to pay PROFESSION Tax on pension.