Liabilities of a proprietor while paying ProfessionTax

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Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2010 I'm a Mumbai-based Sub-broker registered with SEBI. For my office, I have hired a peon and a dealer. If I wish to pay them a salary and deduct the same as an expense in my income, what are the necessary registrations required.

If Profession Tax is to be deducted from my employees, what is the slab if any, and who needs to file the returns of Profession Tax? The Employee? or the Employer.

If the Employer is filing returns for profession tax, is it to be filed on an annual basis or quarterly?

Apart from Profession Tax, which other deductions are to be made while computing salaries?

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
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02 March 2010 You need to take Prof.tax number for yourself as an employer and also for employees. So there will be Two P.T.Number.

P.T.Slab

For Employer : Rs.2500 per annum(in you case)
For Employee :

Salary less than Rs.5000, then Rs.NIL
Salary 5001 to 10000, then Rs.175 per month
Salary 10001 & above, then Rs.200 per month (Rs.300 in the month of Feb)

Periodicity of payment and return depends upon the P.Tax liability per annum.

If P.Tax liability is less than Rs.5000 p.a., then Annually.
If P.Tax liab is 5001 to 20000 p.a., then quarterly.
If P.Tax Liab is more than 20000 p.a., then monthly.

Other deductions may be TDS, P.F. (if applicable)

Hope the above solves your query,
Regards,
Palani Arumugam
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