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Professional tax on insurance agent

Ankit Patel (Consultant) (186 Points)

18 December 2017

Hi Everyone..

Is Maharashtra professional tax is applicable on insurance Agent.

If Yes - Who is liable to deduct and pay to government.

Is insurance company liable to pay or insurance agent liable to pay to government.

Regards,

Ankit Patel

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8 Replies

CA Mayur Todmal (Practicing CA) (7756 Points)
Replied 18 December 2017

Insurance Agents and Surveyors and Loss Assessors registered or licensed under the Insurance Act 1938 are liable for PT registration in Maharashtra. Rate of Tax 2500/- per annum. tax to be paid by agents and not by company.

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Ankit Patel (Consultant) (186 Points)
Replied 19 December 2017

Thanks Mayur for youyr reply..

We have received notice from Professional Tax Department asking us to provide details of All agents with prfessional tax amount.

1 Like

CA Amol Kasat (Partner) (52 Points)
Replied 24 February 2018

As per notification No.PFT-2017/C.R. 20B/Taxation-3 dt. 19th April 2017, the Insurer (Insurance Company) registered under Insurance Regulatory and Development Authority of India (IRDA) Act, 1999, is liable to deduct the profession tax of rupees 2500 per annum per person from the commission payable to Chief Agents, Principal Agents, Insurance Agents and Surveyors and Loss Assessors registered or licensed under the Insurance Act, 1938. The Insurer shall pay such deducted tax on or before the last date of the month in which such deduction is made. The corresponding new schedule entry 1A is inserted to specify that the rate of tax shall be rupees 2500 per annum for such agents.

MANALI (accountant) (22 Points)
Replied 02 April 2018

HI...

THIS IS QUESTION FOR AN PROFESSIONAL TAX:-

1) I WORKING IN 2 PRIVATE COMPANY THEY DEDUCTION MY PROFESSIONAL TAX 2500 YEARLY RESPECTIVELY

2) I AM ALSO AS LIC AGENT THEY DEDUCTION MY PROFESSIONAL TAX 2500 YEARLY

MY TOTAL YEARLY DEDUCTION PT IS 7500 /-

IS IT RIGHT

REGARDS

MANALI JAIN

Nikhil Nazareth Gonsalves (ARTICLE ASSISTTENT) (22 Points)
Replied 12 August 2019

This is not right. A person has to pay only Rs2500/- . Take a certificate from PT paid from LIC & show it to both employers & request them not to deduct tax