The State Government levies tax on the income received by way of employment, profession, calling or trade, called as Professional Tax. It was first levied in 1949. Clause (2) of Article 276 gives power to the state to levy Professional tax. Professional tax is levied through predetermined slab rates by the respective states. Professional tax payment shall be monthly or annually. Different states have different cover rates and methods of collection for profession tax.
In the following questionnaire, profession tax applicable in the state of West Bengal has been explained:
Salaried individual’s or professionals having a monthly salary of more than INR 10,000 are liable to pay professional tax in West Bengal. The Professional Tax needs to be paid on an annually basis. Below are some of the other examples who are liable to pay professional tax:
The above shall be engaged in any profession/trade/calling/employment in West Bengal and is mentioned in the Profession Tax Schedule. Professionals such as
Legal practitioners, Management consultants, Tax consultants, Licensed shopkeepers, Occupier for factories, Licensed shipping brokers, Medical practitioners, Architects, Engineers, Chartered accountants, Licensed boat suppliers need to pay such tax in West Bengal.
The easiest and the most convenient way of payment of Profession Tax is through the GRIPS online portal. For this, Visit wbprofessiontax.gov.in/ > e- Payment
Payment of Profession Tax shall be made through GRIPS from 1-10-2014. The e-Payment can be made through 4 different options, such as:
Payment can be made through any of the above options.
West Bengal Professional Tax Schedule specifies the rate at which the professional tax should be paid.
West Bengal Professional Tax Slab Rate
(Figures taken from Schedule of Tax available on wbprofessiontax.gov.in)
| Sr. No | Class of persons / Income Earned | Tax rates |
|---|---|---|
| 1) | Employees earning monthly salary or wages— (i) Not exceeding Rs.10,000 (ii) Above Rs. 10,000 but not exceeding Rs. 15,000 (iv) Above Rs. 15,000 but not exceeding Rs. 25,000 (iv) Above Rs.25,000 but not exceeding Rs.40,000 (v) Above Rs.40,000 |
Nil, Rs.110 per month Rs. 130 per month Rs. 150 per month Rs. 200 per month |
| 2) | The annual gross income in the preceding year of any persons engaged in any profession or calling but not engaged as an employee is – (i) Not more than Rs. 60,000 (ii) Above Rs. 60,000 but not exceeding Rs. 72,000 (iii) Above Rs. 72,000 but not exceeding Rs. 84,000 (iv) Above Rs. 84,000 but not exceeding Rs. 96,000 (v) Above Rs. 96,000 but not exceeding Rs. 1,08,000 (vi) Above Rs. 1,08,000 but not exceeding Rs. 1,80,000 (vii) Above Rs. 1,80,000 but not exceeding Rs. 3,00,000 (viii)Above Rs. 3,00,000 but not exceeding Rs. 5,00,000 (ix) Above Rs. 5,00,000 |
Nil Rs. 480 per annum Rs. 540 per annum Rs. 600 per annum Rs. 1,080 per annum Rs. 1,320 per annum Rs. 1,560 per annum Rs. 2,000 per annum Rs. 2,500 per annum |
| 3) | The annual gross turnover or annual gross receipt in the preceding year of any persons engaged in any profession or trade that involves supply of goods or services or both is— (i) Not more than Rs. 5,00,000 (ii) Above Rs. 5,00,000 but not exceeding Rs.7,50,000 (iii) Above Rs. 7,50,000 but not exceeding Rs.25,00,000 (iv) Above Rs. 25,00,000 but not exceeding Rs. 50,00,000 (v) Above Rs. 50,00,000 |
Nil Rs. 300 per annum Rs. 600 per annum Rs. 1,200 per annum Rs. 2,500 per annum |
| 4) | Persons, who are engaged in any profession, trade in West Bengal. | Rs. 2,500 per annum |
It is to be noted that any person covered in the entry 4 of the schedule shall pay the tax at the rate of Rs. 2,500 per annum. The limits of the gross turnover or gross receipts of such person shall not apply here.
What is the implication of late payment of tax?
Late payment of tax attracts interest @ 1 % per month or part there-of.
Which rate shall be applicable if a person falls under more than one entry?
In such a case as mentioned, the highest rate of tax specified under the entries is applicable.
Who should apply for enrolment?
All those persons under entry number 2 to 4 of the “Schedule” shall compulsorily acquire an Enrolment Certificate.
What will happen if a person fails to apply for enrolment?
A penalty of Rs. 100 per day will be imposed for delay of each month or part of it, if enrollment is not taken. Moreover, a defaulter shall also be liable for imprisonment with or without fine.
When should a person acquire enrolment certificate?
A person shall acquire enrolment certificate within 90 days from the date of liability to pay tax.
When should an employer make a separate application for registration?
A separate application shall be made by an employer if he has more than one workplace within the jurisdiction of different authorities. However, the Commissioner of Profession Tax shall allow single registration for the whole of West Bengal.
What are the consequences if an employer fails to apply for registration within the specific period?
Penalty of Rs. 500 for the delay of each month or part of it shall be imposed on the employer who fails to apply for registration within a specific period.
When should an employer apply online registration?
An employer shall apply for registration within 90 days from the date of liability.
Who should file a return?
All registered employers are compulsorily required to submit the returns wherein an enrolled person is not required to file any returns.
What is the punishment of late filling of return?
For late filing of Return, the following shall be the punishment:
What is the due date of payment of West Bengal Profession tax?
| Category of person | Due date |
|---|---|
| Enrolled persons | On or before July 31st of each financial year. |
| Registered employers | Monthly |
How to obtain a Certificate of Enrollment?
To apply for PT Enrolment on-line, visit
wbprofessiontax.gov.in > Then click on Profession Tax > And then PT Enrolment.
What is the stipulated time period by which one should pay Profession Tax?
A person who is enrolled under this tax shall pay Profession Tax by 31st July of the same year for which tax is due. It shall be paid on the basis of annual gross income or annual gross turnover or annual gross receipt or fixed amount of Rs. 2500/- , whichever is applicable.
What are the prerequisites for West Bengal Professional Tax Payment?
Documents such as the Certificate of Enrolment, receipt of annual payment of tax are required in case of a self-employed person, but do not require filing any of return. Certificate of Registration, monthly payment of tax and filing of annual return is required in case of an employer.
Under what circumstances shall penalty be imposed?
Some of the cases under which penalty shall be imposed are: –
Does the West Bengal Government provide for any exemption?
The State Government of West Bengal shall provide for reduction in tax liability for any class of persons by issuing notifications.
Who are included in the above exemption?
The following are the persons to whom the Act does not apply:
What is the validity period of the demat certificate?
The enrolment number provided by the authorized officials is permanent; but the certificate usually has validity for the current financial year. The demat certificate in every financial year after making payment of tax (through GRIPS) for the concerned financial year shall be generated in every financial year.
