Bihar State Tax on Professions, Trades, Callings and Employment Act, 2011

The Bihar State Tax on Professions, Trades, Callings and Employment Act, 2011 (“Bihar PT Act”) is enacted with the object of levying tax on professions, trades, callings, and employments. It extends to the whole state of Bihar.

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.

PT Slab

Salary and wage earners whose monthly salaries or wages in INR per annumTax Rate in INR per annum
Up to 3,00,000NIL
From 3,00,001 to 5,00,0001,000
From 5,00,001 to 10,00,0002,000
Above 10,00,0002,500

Extracted from the Bihar PT Rules

Registration:- (1) Every employer required to be registered by Section 5 shall apply, in Form PT-I, for registration under the Act to the In-charge of the circle within whose jurisdiction the office of the employer is situated. Such application shall be submitted within seven days of the employer being required to be registered and shall be filed in an electronic manner on the official website of the Commercial Taxes Department and the said application shall be processed in the manner hereinafter specified:

Provided that such an application for registration by an employer who has employed persons before the coming into force of these Rules shall be made within a period of thirty days of the coming into force of these Rules.

(2) (a) Every employer shall declare his Permanent Account Number, Name as per PAN, mobile number, email address, and any other information as required in FORM PT-I on the official website of the Commercial Taxes Department.

(b) The Permanent Account Number shall be validated online by the official website of the Commercial Taxes Department from the database maintained by the Central Board of Direct Taxes.

(c) The mobile number shall be verified through a one-time password sent to the said mobile number, and

(d) The email address declared shall be verified through a separate one-time password sent to the said email address.

(e) On successful verification of PAN, mobile number, and email address, the applicant shall electronically submit an application in FORM PT-I along with documents specified at the official websites of the Commercial Taxes Department.

(f) On successful submission of registration application under clause (e), an acknowledgment shall be issued electronically to the applicant.

(3) (a) The application shall be forwarded to the Tax Assessing Authority of the concerned circle, who after verifying that all the column of the application has been properly filled in, shall, within a period of one working day from the date of submission of the application, approve the grant of registration in Form PT-II and a certificate of registration shall be made available to the applicant on the official website of the Commercial Taxes Department.

(b) If the Tax Assessing Authority of the circle fails to take any action, within a period of one working day from the date of submission of the application, the application for grant of registration shall be deemed to have been approved and a certificate of registration in Form PT-II shall be made available to the applicant on the official website of the Commercial Taxes Department.

(c) The certificate specified in clause (a) and (b) of sub-rule (3) shall bear the registration number allotted to the employer and the said registration number shall be the 'Tax Deduction and Collection Account Number,' allotted to the employer under the Income Tax Act, 1961, prefixed by the digits "10" and suffixed by the letter 'R'.

Provided that in case an employer has not been allotted a Tax Deduction and Collection Account Number under the Income Tax Act, 1961, the registration number shall be the Permanent Account Number, allotted to such employer under the Income Tax Act, 1961, prefixed by the digits "10" and suffixed by the letter 'R'.

(4) The certificate of registration shall be digitally signed and made available on the official website of the Commercial Taxes Department.

Explanation. - For the purposes of these sub-rules, the expression 'employer' shall mean the Company, firm, society, association of person, undivided Hindu family, body corporate, board, Authority, Undertaking or Corporation, as the case may be, which has employed persons liable to pay tax under the Act.]

Enrollment:- (1) Every assessee to whom the second proviso to Section 5 and to whom sub-section (2) of section 6 applies, shall apply, in Form PT-IA, for enrollment under the Act to the In-charge of the Circle within whose jurisdiction the assessee resides. Such application shall be submitted within seven days of the assessee being liable to pay tax under the Act and shall be filed in an electronic manner on the official website of the Commercial Taxes Department and the said application shall be processed in the manner hereinafter specified:

Provided that such an application for enrollment by an assessee engaged in any profession, trade, calling, or employment before the coming into force of these Rules shall be made within a period of thirty days of the coming into force of these Rules.

(2) (a) Every person who is liable to be enrolled under these Rules, shall declare his Permanent Account Number, Name as per PAN, mobile number, email address, and any other information as required in FORM PT-IA on the official website of the Commercial Taxes Department.

(b) The Permanent Account Number shall be validated online by the official website of the Commercial Taxes Department from the database maintained by the Central Board of Direct Taxes.

(c) The mobile number declared by the applicant shall be verified through a one-time password sent to the said mobile number, and

(d) The email address declared by the applicant shall be verified through a separate one-time password sent to the said email address.

(e) On successful verification of PAN, mobile number, and email address, the applicant shall electronically submit an application in FORM PT-IA at the official websites of the Commercial Taxes Department.

(f) On successful submission of registration application under clause (e), an acknowledgment shall be issued electronically to the applicant.

(3) (a) The application shall be forwarded to the Tax Assessing Authority of the concerned circle, who after verifying that all the column of the application has been properly filled in, shall, within a period of one working day from the date of submission of the application, approve the grant of registration in Form PT-IIA and a certificate of enrollment shall be made available to the applicant on the official website of the Commercial Taxes Department.

(b) If the Tax Assessing Authority of the circle fails to take any action, within a period of one working day from the date of submission of the application, the application for grant of enrollment shall be deemed to have been approved and a certificate of enrollment in Form PT-IIA shall be made available to the applicant on the official website of the Commercial Taxes Department.

(c) The certificate specified in clause (a) and (b) of sub-rule (3) shall bear the enrollment number allotted to the assessee and the said enrollment number shall be the 'Permanent Account Number,' allotted to the assessee under the Income Tax Act, 1961, prefixed by the digits "10" and suffixed by the letter 'E'.]

Returns. - (1) Every employer registered under the Act shall furnish to the prescribed authority an annual return in form PT-VIII containing details of the tax deducted by him in respect of the year, on or before the end of the month of November of every year.

(2) Every person enrolled under the Act shall furnish to the prescribed authority an annual return in form PT-IX on or before the end of the month of November of every year.

(3) The returns referred to in sub-rule (1) or sub-rule (2) shall be filed and be disposed of in such manner as the Commissioner may, by notification, specify.

Compliance

References

For Bihar PT Information - Commercial Taxes Department (biharcommercialtax.gov.in)

For E-Registration – User Manual

Bihar Professional Tax Act

Bihar Professional Tax Rules

Bihar Professional Tax Schedule

Notifications & Circulars

Professional Tax Remittance and Returns (greythr.com)

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