Profeession tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2013 sir

my liabilities state form 1/04/2001
any relief form profession tax and i register in now than how much tax i should be liable to pay

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 September 2013 please elaborate the query

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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10 August 2024 Professional Tax (PT) reliefs and liabilities can vary based on the state regulations and specific circumstances of your business. Here’s a general approach to understanding the reliefs and liabilities if you are registering for PT now but your liabilities date back to 2001:

### 1. **Understanding Reliefs and Liabilities:**

#### **Relief Options:**

1. **Penalty and Interest Relief:**
- **Penalties and Interest:** Some states might offer relief from penalties and interest if you settle outstanding PT dues voluntarily. This is often part of a "voluntary disclosure" or "compliance relief" scheme.
- **Amnesty Schemes:** Occasionally, state governments announce amnesty schemes for outstanding PT dues where penalties and interest might be waived or reduced.

2. **Retroactive Registration:**
- **Registration Date:** If you are registering now, you might be able to get relief for the period of non-compliance, but this varies. Typically, you will need to pay the tax due from the date of registration or when the business started, along with any applicable penalties and interest.

#### **Liability Calculation:**

1. **Determine Liabilities:**
- **Historical Liabilities:** Calculate the Professional Tax liabilities from the date your liability started (e.g., from April 1, 2001) until the present. This includes the tax due for each year plus any interest or penalties.
- **Current Liabilities:** For the current year, you need to pay PT based on the number of employees and the rates applicable in your state.

2. **Amount Due:**
- **Outstanding PT:** Contact the local PT office or consult with a tax advisor to get the exact amount of outstanding PT, including any applicable interest and penalties.

3. **Current Rate:**
- **Current PT Rates:** Verify the current PT rates for the current financial year. This will be the amount you owe for the ongoing period.

### 2. **Steps to Take:**

1. **Register for PT:**
- **Registration:** Complete the registration process for Professional Tax with your state’s tax department.

2. **Calculate and Pay Outstanding Dues:**
- **Dues Calculation:** Calculate the total outstanding PT, including penalties and interest.
- **Payment:** Pay the outstanding dues as instructed by the tax authorities.

3. **Seek Relief:**
- **Apply for Relief:** If applicable, apply for any available reliefs or amnesty schemes. This usually involves submitting a formal application or request to the state’s PT office.

4. **Consult a Tax Professional:**
- **Professional Advice:** It’s advisable to consult with a tax professional or accountant who can provide specific guidance based on your state's regulations and your business’s situation.

### **Example Calculation:**

- **Outstanding Liability Calculation:** If the PT rate was Rs. 2,500 annually and you have 20 years of outstanding dues, you would initially calculate Rs. 2,500 x 20 years = Rs. 50,000, plus any interest and penalties.

- **Current Liability:** For the current year, calculate based on the number of employees and the prevailing PT rate.

**Note:** The exact process and relief options can vary by state and the specific circumstances of your case. Always verify with local PT authorities and consult with a tax advisor to ensure compliance and to take advantage of any available reliefs or schemes.

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