The Andhra Pradesh State Tax on Professions, Trades, Callings and Employment Act, 1987 (“AP PT Act”) came into force with effect from 15.06.1987 with the object of levying tax on professions, trades, callings, and employments. It extends to the whole state of Andhra Pradesh.
Professional Tax is the tax levied by the State Government on the income from Profession, or Employment and is collected through the Commercial Tax Department of the State. In the cases of employment, the employer shall deduct the tax from the salary and deposit the same to the State Government and the employer shall furnish a return to the tax department in the prescribed form in a specified time frame along with proof of tax payment. The other individual professionals shall pay their respective tax directly to the Government as prescribed under the Professional tax rules.
The amount of professional tax deducted / payable by an employee /professional differs from State to State based on the slabs prescribed by respective States under corresponding Professions, Trades, Callings, And Employments Act & Rules.
The professional tax is levied only in certain States; there are some states and union territories wherein this tax is not levied.
Rates and Tariffs
Registration & Enrolment:
Every assessee (not being an officer of the State Government or the Central Government) liable to pay tax under section 5 shall obtain a certificate of registration from the assessing authority in the prescribed manner.[(Rule 3(1) & (2) – Form I]
Every assessee (other than a person earning salary or wages, in respect of whom the tax is payable by his employer), liable to pay the tax under this Act, shall obtain a certificate of enrolment from the assessing authority in the prescribed manner. [Rule 4 & 14 Form II]
Every assessee required to obtain a certificate of registration or enrolment under this section shall-
within thirty (30) days
from the date of commencement of this Act; or if he was not engaged in any profession, trade, calling, or employment on the date of such commencement, within thirty days of the receipt of the application (which period in the first year from the commencement of this Act shall be extended to ninety days) if the application is in order, grant him such certificate of registration or enrolment. [Rule 4 & 6 – Form II ]
The assessing authority shall mention in every certificate of enrolment the amount of tax payable by the holder according to the First Schedule and the date by which it shall be paid, and such certificate shall serve as a notice of demand for purpose of section 12.
Where an assessee liable to registration or enrolment has wilfully failed to apply for such certificate within the time, specified in sub-section (3), the assessing authority may, after giving him a reasonable opportunity of being heard, impose a penalty as prescribed under the Act & Rules framed thereunder. [Rule 17 & 23].
Where an assessee liable to registration or enrolment has deliberately given false information in any application submitted under this section, the assessing authority may, after giving him a reasonable opportunity of being heard, impose a penalty as prescribed under the Act & Rules framed thereunder. [Rule 16 & 23].