MAHARASHTRA PROFESSION TAX ACT |
Scope
Every person engaged actively or otherwise in any profession, trade, calling or
employment and falling under one or other classes mentioned in Schedule I of the
Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 (PT)
is liable to pay to the State Government tax prescribed under the said Schedule. [S.
3(2)]
Persons earning salary or wages are also covered. Employers are required to deduct
PT, at rates prescribed, from salary/wages and to pay tax to State Government on
behalf of employees. Employer is liable to pay tax irrespective of deduction. (S.
4)
Where any employee is covered by one or more entries other than entry 1 in
Schedule I and rate of tax under any such other entry is more than rate of tax under
entry I of that schedule and if he issues to his employer, a certificate in Form IIB,
or where employee is simultaneously engaged in employment of more than one employer
and if such employee issues to his employer, a certificate in Form IIC, the
employer(s) has not to deduct tax from the salary/wages payable and such employer(s)
are not liable to deposit tax on behalf of such employee.
Registration and Enrolment
Section 5 — every person liable to pay tax u/s. 4 shall obtain a Certificate
of Registration, and every person liable to pay tax u/s. 3(2) shall obtain a
Certificate of Enrolment from prescribed authority in prescribed manner.
Application for enrolment/registration shall be made within 30 days from date of
commencement of profession, trade, calling or employment or within 30 days of
becoming liable to pay tax under the Act.
Application for enrolment and application for registration have to be made online,
w.e.f. 1st April, 2012, in Form I and II respectively. (Ref. Cir. No. 5T dated 31st
March, 2012)
Where a person liable for registration/enrolment has willfully failed to apply for
such certificate within required time, the prescribed authority may, after a
reasonable opportunity of hearing, impose penalty @ ` 5 (registration)/` 2
(enrolment) per day of delay.
The prescribed authority shall make such inquiry as may be necessary within 30
days of receipt of application, and if it is in order, shall grant certificate.
Returns
Every registered employer shall furnish a return in Form III-B (electronic
return). Non filing of return, in time, may attract penalty. The payment of tax, if
any, should be made in Challan Form No. MTR-6, before uploading the return.
Due Dates (w.e.f. 1st April, 2011)
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a)
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If tax liability during the previous year or part thereof
was less than `. 50,000.
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Annual Return on or before 31st March of the year (for salary
paid for the period 1st March to 28th February)
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b)
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` 50,000 or more
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Monthly Returns on or before the last day of the month
(covering salary paid for the preceding month)
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Trade Circular No. 4T dated 19th March, 2011 provides for a grace period of 10
days for uploading e-return provided that the payment of tax due has been made within
the due date.
If any return is not filed in time, late fees is payable @ ` 1000/-
per return, in respect of all those returns filed on/or after
1st August 2012. (Earlier the provision was to levy penalty @ ` 300/- per return.)
As per recently introduced provisions, an employer can file revised return of
profession tax within 6 months from the end of the year. [Section 6(4)]
Payment of Taxes
Every registered employer shall pay tax before filing the return as per due
dates.
Every enrolled person shall pay the tax within one month from the date of
enrolment in the first year, thereafter by 30th June of every year.
Facility of e-payment of profession tax has been made available from 1st January,
2012.
Lump Sum Payment (Composition Scheme)
Enrolled person/s can avail the benefit of above scheme, as provided u/s. 8(3) of
the Act. Accordingly one can discharge his liability for five years by making advance
payment, of an amount equal to four times of annual tax liability, on or before 30th
June of the year. If the amount is not paid by 30th June it can still be paid before
31st March, by paying an additional lump sum amount calculated @ ` 200 p.m. (w.e.f.
1-4-2000) for the period of delay. Any increase or decrease in the rate of tax within
the aforesaid period of five years shall not vary the tax liability of such
person.
Interest and Penalty for Non-Payment of Tax
If an enrolled person/registered employer fails to pay the tax in time he shall be
liable to pay simple interest @ 1.25% of the tax payable for each month for which the
tax remains unpaid. The Commissioner is empowered to reduce/waive this interest in
respect of any period, after recording reasons.
Further if the enrolled person/registered employer fails without reasonable cause,
to make payment of any tax within the required time the prescribed authority may,
after a reasonable opportunity of hearing, impose a penalty equal to 10% of the tax
due.
Exemption
Section 27A exempts following classes of persons from tax:
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members of armed
forces of Union serving in the State;
-
the badli workers
in the textile industry;
-
any person
suffering from a permanent physical disability (including blindness) specified in the
rules, certified by a physician, a surgeon or an occulist, working in a Government
hospital, which has the effect of reducing considerably such individual’s
capacity for normal working or engaging in a gainful employment or occupation and
also his parents or guardians;
-
women exclusively
engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana of Directorate of
Small Savings;
-
parents or
guardians of any person suffering from mental retardation specified in the rules,
certified by a psychiatrist working in a Government hospital;
-
persons having
completed age of 65 years (w.e.f. 1-4-1995);
-
parents or
guardians of a child suffering from a physical disability mentioned in (3) above;
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partnership firms
and HUFs.
-
Mathadi Kamgar (casual workers) [Cir. 12T dated 3-8-2011]
Rates of Profession Tax
Rates of tax are prescribed under Schedule I of the Act containing entries 1 to 21
for different classes of persons.
Rates of tax (w.e.f. 1-7-2009) (as per Schedule I)
Schedule of rates of tax on professions, trades, callings and employments
Sl.
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Sr No. |
No. Class of Persons
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Rate of tax `
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(1) |
(2)
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(3)
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1 |
Salary and wage earners
— Such persons whose
monthly salaries or
wages,—
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(a) do not exceed rupees 5,000
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Nil
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(b) exceeds rupees 5,000 but do not exceed
rupees 10,000;
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175 per month
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(c) exceeds rupees 10,000
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2,500 per annum,
to be paid in the
following manner:
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rupees two
hundred per
month except
for the month
of February;
-
rupees three
hundred for the
month of
February
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2 |
(a) Legal Practitioners including Solicitorand
Notaries;
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2,500 per
annum
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(b) Medical Practitioners including Medical
Consultants and Dentists;
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"
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(c) Technical and Professional Consultants,
including Architects, Engineers, R.C.C.
Consultants, Tax Consultants, Chartered
Accountants, Actuaries and Management
Consultants;
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"
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(d) Chief Agents, Principal Agents, Insurance
Agents and Surveyors and Loss Assessors
registered or licenced under the Insurance
Act, 1938, (4 of 1938) U.T.I. Agents under
U.T.I. Scheme, N.S.S. Agents under postal
scheme;
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"
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(e) Commission Agents, Dalals and Brokers
(other than estate brokers covered by any
other entry elsewhere in this Schedule);
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"
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(f) All types of Contractors (other than building
contractors covered by any other entry
elsewhere in this Schedule); and
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"
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(g)
Diamond dressers and diamond polishers,
having not less than one year’s standing in
the profession.
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"
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3 |
(a) Members
of Association recognised under
the Forward Contracts (Regulation)
Act, 1952; (74 of 1952)
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2,500 per annum
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(b)
(i) Member of Stock Exchanges recognised
under the Security Contracts (Regulation)
Act, 1956; (42 of 1956)
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"
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(ii) Remisiers recognised by the Stock Exchange
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"
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4 |
(a) Building
Contractors
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2,500 per annum
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(b) Estate Agents, Brokers or Plumbers, having
not less than one year’s standing in
the
profession
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"
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5 |
Directors (other
than those nominated by
Government) of Companies registered under the
Companies Act, 1956, (1
of 1956) and Banking
Companies as defined in
the Banking RegulationAct, 1949 (10 of 1949)
Explanation.— The term
'Directors’ for
the purpose of this entry will not
include the persons who
are Directors of the
companies whose
registered offices are situated
outside the State of
Maharashtra and who are
not residing in the
State of Maharashtra.
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2,500 per annum
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6 |
(a)
Bookmakers and Trainers licensed by the
Royal Western India Turf Club Limited;
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2,500 per annum
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(b) Jockeys licensed by the said Club.
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"
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7 Self-employed persons in
the Motion Picture
Industry, Theatre,
Orchestra, Television Modelling or
Advertising Industries as follows:—
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(a) Writers, Lyricists, Directors, Actors and
Actresses (excluding Junior Artists),
Musicians, Playback Singers, Cameramen,
Recordists, Editors and Still-Photographers;
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2,500 per annum
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(b) Junior Artists, Production Managers,
Assistant Directors, Assistant Recordists,
Assistant Editors and Dancers.
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1,000 per annum
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8
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Dealers registered under
the Maharashtra Value
Added Tax Act, 2002,
(Mah. IX of 2005) or
Dealers registered only
under the Central Sales
Tax Act, 1956, (74 of
1956) whose annual
turnover of sales or
purchases of previous year,—
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(i) is rupees 25 lakh or less
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2,000 per annum
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(ii)
exceeds rupees 25 lakh
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2,500 per annum
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9
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Occupiers of Factories
as defined in the Factories Act,
1948, (63 of 1948) who are not covered byentry 8 above.
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2,500 per annum
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10 |
(1) (A) Employers
of establishments as defined
in the Bombay Shops and Establishments
Act, 1948, where their establishments
are situated within an area to which the
aforesaid Act applies, and who are not
covered by entry 8—Such employers of
establishments,—
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(a) where no employee is employed;
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1,000 per annum
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(b)
where not exceeding two employees
are employed;
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2,000 per annum
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(c) where more than two employees
are employed.
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2,500 per annum
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(B) Employers of establishments as
defined
in the Bombay Shops and Establishments
Act, 1948, (Bom. LXXIX of 1948) where
their establishments are not situated
within an area to which the aforesaid
Act applies, and who are not covered
by entry 8.
Such employers of establishment, —
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(a) where no employee is employed;
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500 per annum
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(b) where not exceeding two employees
are employed;
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1,000 per annum
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(c) where more than two employees
are
employed
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2,500 per annum
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(2) Persons owning/running STD/ISD booths
or Cyber Cafes, other than those owned or
run by Government or by physically
handicapped persons;
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1,000 per annum
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(3) Conductors of Video or Audio Parlours,
Video or Audio Cassette Libraries, Video
Game Parlours;
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2,500 per annum
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(4) Cable Operators, Film Distributors
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2,500 per annum
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(5) Persons owning/running marriage halls,
conference halls, beauty parlours, health
centres, pool parlours;
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2,500 per annum
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(6) Persons running/conducting coaching
classes of all types.
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2,500 per annum
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11
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Owners or Lessees of
Petrol/Diesel/Oil Pumps and
Service Stations/Garages and Workshops
of Automobiles.
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2,500 per annum
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12
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Licensed Foreign Liquor
Vendors and employers of
Residential Hotels and Theatres as defined in
the Bombay Shops and
Establishments Act, 1948.
(Bom. LXXIX of 1948).
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2,500 per annum
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13 |
Holders of permits for
Transport Vehicles granted
under the Motor Vehicles
Act, 1988, (59 of 1988)which are used or
adopted to be used for hire
or reward, where any
such person holds permit
or permits
for,—
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(a)
three wheeler goods vehicles, for each
such
vehicle;
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750 per annum
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(b)
any taxi, passenger car, for each such vehicle;
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1,000 per annum
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(c)
(i) goods vehicles other than those
covered by
(a);
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1,500 per annum
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(ii) trucks or buses for each such
vehicle :
Provided that the total tax payable by aholder under this entry shall not exceed
rupees 2,500 per annum.
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1,500 per annum
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14
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Money-lenders licensed under the
Bombay
Money-lenders Act, 1946 (Bom. XXXI of 1947)
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2,500 per annum
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15 |
15 Individuals or Institutions
conducting Chit Funds.
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2,500 per annum
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16 |
Co-operative Societies
registered or deemed to
be registered under the
Maharashtra
Co-operative Societies
Act, 1960 (Mah. XXIV
of 1961) and engaged in
any profession,
trade or
calling,—
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(i) State level Societies;
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2,500 per annum
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(ii)
Co-operative Sugar Factories and
Spinning Mills;
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2,500 per annum
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(iii)
District Level Societies;
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750 per annum
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(iv)
Handloom Weavers Co-operative Societies;
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500 per annum
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(v) All other Co-operative Societies not
covered by clauses (i), (ii), (iii) and (iv) above
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750 per annum
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17 |
Banking Companies, as defined
in the Banking
Regulation Act, 1949 (10 of 1949).
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2,500 per annum
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18 |
Companies registered under the
Companies Act,
1956 (1 of 1956) and engaged in any
profession, trade or
calling.
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2,500 per annum
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19 |
Each partner of a firm
(whether registered or not
under the Indian Partnership Act, 1932)
(9 of 1932) engaged in
any profession,
trade or calling.
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2,500 per annum
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20 |
Each Coparcener (not being a
minor) of a Hindu
Undivided Family, which is engaged
in any profession, trade
or calling.
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2,500 per annum
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21 |
Persons other than those
mentioned in any of the
preceding entries who are engaged in any
profession, trade,
calling or employment and in
respect of whom a
notification is issued under
the second proviso to
sub-section (2) of section 3.
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2,500 per annum
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Persons covered by more than one entry
At the highest rate of tax specified under any of those entries shall be
applicable. [Except for entry 16(iv)]
It may also be noted that :
—
Professionals retired from their profession but continuing on the list of any
council, association etc., are not liable for enrolment (Cir. No. 99 dt. 30-3-1981
and No. 5
dt. 12-4-1989)
— If L.I.C. agent gets
commission, only on past business, he is not liable for enrolment or to pay
Profession Tax (Dwarka Pardiwala : R.A. No. 47 of 1979 dt 13-3-1980).
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