West Bengal State Tax on Professions, Trades, Callings & Employment Rules, 1979

The West Bengal State Tax on Professions, Trades, Callings, and Employments Act, 1979, regulates the levy and collection of a tax on professions, trades, callings, and employments in West Bengal.

The Act provides additional revenue for the State Government and includes the following key provisions:

Key Provisions:

Levy and Scope:

Tax applies to individuals and entities engaged in professions, trades, callings, or employment in West Bengal. The tax is levied based on the categories and rates specified in the Act’s schedule.

Liability:

Employers are required to deduct and remit the tax on behalf of employees. Self-employed individuals (not employed under an employer) must register and pay the tax themselves.

Registration and Enrollment:

Employers must obtain a certificate of registration. Individuals (self-employed) must obtain a certificate of enrollment.

Returns and Payments:

Registered employers are required to file periodic returns detailing salaries paid and tax deducted. Enrolled individuals must pay the tax annually by a specified date.

Penalties and Offences:

Non-compliance, such as failure to register, file returns, or pay tax, attracts penalties and interest. Authorities have the power to inspect records and enforce penalties for non-compliance.

Exemptions:

The State Government may provide exemptions or reductions in tax through notifications.

Appeals and Revisions:

Provisions for appeals and revisions of assessments are included to address disputes.

Administrative Framework:

The Commissioner of Profession Tax and other officers are appointed for the administration of the Act.

Compliance Guide for the Act

For Employers:

Registration:

Obtain a certificate of registration from the prescribed authority within 90 days of becoming liable. Maintain accurate records of employees, salaries, and deductions.

Deduction and Payment:

Deduct profession tax from employees' salaries as per the applicable rates. Pay the tax to the Government treasury within the prescribed time.

Filing Returns:

File periodic returns (monthly, quarterly, or annually as applicable) showing tax deducted and paid. Include proof of payment (challans) with returns.

Penalties:

Avoid delays in deductions, payments, and return filing to prevent penalties (₹200/month late fee, and up to 50% of the tax as a penalty for non-payment).

Changes in Registration:

Inform authorities of changes such as business discontinuance, change in trade, or location within 30 days.

For Self-Employed Individuals:

Enrollment:

Obtain a certificate of enrollment within 90 days of becoming liable under the Act.

Tax Payment:

Pay the annual profession tax by July 31 of the financial year. Retain the payment receipt for proof of compliance.

Rate of Tax:

Check the rate applicable to your profession, trade, or calling as per the schedule.

Penalties:

Ensure timely payment to avoid penalties and interest.

General Compliance Measures:

Record Maintenance:

Maintain up-to-date records of salary disbursements, tax deductions, and payments.

Audit and Inspection:

Cooperate with authorities during audits or inspections. Ensure records are readily available at the workplace.

Addressing Disputes:

Use the appellate mechanism provided in the Act for grievances regarding assessments or penalties.

Stay Updated:

Keep track of notifications issued by the State Government for changes in tax rates, exemptions, or procedural requirements.

Compliances

Profession Tax Schdule

Employees earning monthly salary or wages: Not exceeding Rs.8,500 ------------------------- NIL Above Rs.8,500 but not exceeding Rs. 10,000 ---- NIL Above Rs. 10,000 but not exceeding Rs. 15,000 -- INR 110 per month Above Rs. 15,000 but not exceeding Rs. 25,000 -- INR 130 per month Above Rs.25,000 but not exceeding Rs.40,000 ---- INR 150 per month Above Rs.40,000 -------------------------------- INR 200 per month Refer to PT Schedule link given below for more details

* The West Bengal State Tax on Professions, Trades, Callings, and Employments Act * The West Bengal State Tax on Professions, Trades, Callings, and Employments Rules * West Bengal Profession Tax related Notifications * West Bengal Profession Tax Schedule * West Bengal Profession Tax FAQs

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