The Maharashtra Profession Tax Act, 1975- Mandatory for All – Hemant Deshpande

THE APPLICABILITY :
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, 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 Profession Tax, at prescribed rates, from salary/wages paid to employees, and to pay the tax to State Government on behalf of employees. Employer is liable to pay tax irrespective of deduction.
(S. 4)

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, This online registration facility is available to all resident dealers/persons.

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 :

Note:- If any return is not filed in time, mandatory late fees is payable @ ₹ 1,000/- per return, in respect of all those returns filed after the due date. Exemption from payment of late fees has been granted to those ‘Employers’ who are educational institution, which receives grant in aid from the State Government. An employer can file revised return of profession tax within 6 months from the end of the year. [Section 6(4)].

EXEMPTION :
Following classes of persons are exempt from payment of profession tax:

1. Members of armed forces of Union serving in the State;
2. Badli workers in the textile industry;
3. Any person suffering from a permanent physical disability (including blindness) specified in the rules, certified by a physician, a surgeon or an oculist, 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;
4. Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana of Directorate of Small Savings;
5. Any person and parents or guardians of such person who is suffering from mental retardation specified in the rules, and, certified by a psychiatrist working in a Government hospital;
6. Persons having completed age of 65 years (w.e.f. 1-4-1995);
7. Parents or guardians of a child suffering from a physical disability mentioned in (3) above;
8. Partnership firms and HUFs (but each partner of a partnership firm and each coparcener of HUF are liable for enrolment, see entries 19 & 20 in Schedule–1).
9. Mathadi Kamgar (casual workers) [Cir. 12T dated 3-8-2011].
10. Professionals, covered by Entry 2 of the Schedule, up to one year of standing in the profession.
11. Armed members of Central Reserve Police Force to whom the Central Reserve Police Force Act, 1949 applies and the armed members of Border Security Force to whom the Border Security Force Act, 1968 applies, serving in the State of Maharashtra. (w.e.f. 1-4-2016)

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. The above guidelines are subject to change as per govt. norms.