Question 1

What is presumptive taxation under section 44AD and 44ADA?

Accepted Answer

Himachal Pradesh levies profession tax under its own 2005 Act, contrary to some third-party summaries claiming HP has no professional tax. Every employer liable to pay tax on behalf of employees must register. Threshold: Every employer liable to deduct/pay tax on behalf of employees (see professionalTaxSlabs), and every self-employed person/class listed in Schedule I, must obtain a certificate of registration/enrolment within 30 days of becoming liable. Fee basis: No separate registration/enrolment fee is prescribed in the Act itself; the amount actually collected is the profession tax per Schedule I (see professionalTaxSlabs). Deadline: Registration/enrolment within 30 days of becoming liable to pay tax (Section 7) Statute: Himachal Pradesh Tax on Professions, Trades, Callings and Employments Act, 2005 Late registration penalty: up to Rs.10/day of delay, capped at Rs.2000 for an employer (Rs.1000 for other assessees). Appeals lie to the Deputy Excise and Taxation Commissioner, then the Commissioner.

Question 2

Professional Tax Registration — Meghalaya

Accepted Answer

Every employer (other than an officer of a Government entity) liable to pay tax under section 3 must obtain a certificate of registration; every other liable person must obtain a certificate of enrolment. Both obligations were newly inserted as section 3A by Meghalaya Act No. 15 of 2022. Threshold: Every employer liable to pay tax under section 3 must apply for registration WITHIN NINETY DAYS of becoming liable; the assessing authority must grant the certificate within thirty days of receiving a complete application. An applicant with establishments in both State Government and Autonomous District Council jurisdictions must apply separately to each authority. Fee basis: no registration or enrolment fee is prescribed in the Act or the 2022 Amendment Rules as read; the Act prescribes interest and penalties instead Deadline: Registration application within ninety days of becoming liable (section 3A(4)(a)); certificate granted within thirty days (section 3A(4)(c)). A registered person who fails to pay tax on or before the last day of the month following the quarter pays interest at 12 per cent per annum for the period of default, with no interest if at least 90 per cent of the tax payable was paid by the due date (section 12(5)). Statute: The Meghalaya Professions, Trades, Callings and Employments Taxation Act (Assam Act VI of 1947 as adapted and amended by Meghalaya), as amended by the Meghalaya Professions, Trades, Callings and Employments Taxation (Amendment) Act, 2022 (Meghalaya Act No. 15 of 2022) The Gazette of Meghalaya Extraordinary No. 166 of 27 September 2022, Part IV, carrying Meghalaya Act No. 15 of 2022 (assented 23 September 2022), was read in full from the department's own server at meggst.gov.in, and the Meghalaya Trades, Callings and Employment (Amendment) Rules 2022 notification No. ERTS (T) 122/2021/Pt I/33 dated 18 January 2023 was read in full on meghalaya.gov.in. Registration is in Form IA with an annexed Form Ia listing each proprietor, partner, director and employee with designation, estimated gross annual income and estimated annual tax. Evasion penalty was changed by section 6 of the 2022 Act from a Rs 500 fine plus imprisonment to a fine of FOUR TIMES the tax sought to be evaded. NOTE the jurisdictional split that matters in Meghalaya: professional tax is collected by the Autonomous District Councils in their own areas, not by the State, so an employer with places of work on both sides files twice. No registration fee is prescribed anywhere in the Act or Rules read, so none is asserted.

Question 3

Indirect tax — state specifics — Meghalaya

Accepted Answer

Meghalaya used to be a ten-lakh state and is not one any more. Its GST Act was enacted in 2017 with a ten lakh rupee registration threshold, and the 2019 amendment Act replaced the word ten with twenty. Both figures were read at source, which is why this is now settled rather than inferred. Threshold: Aggregate turnover in a financial year exceeding Rs 20,00,000 (twenty lakh rupees). Section 22(1) as enacted read ten lakh rupees; section 11 of the 2019 Amendment Act substituted the word twenty for the word ten in the last line of sub-section (1). Fee basis: GST registration carries no fee; the operative Meghalaya-specific figure is the section 22(1) registration threshold, recorded below Slabs: Section 22(1) registration threshold as originally enacted in 2017 (superseded) — INR 1000000; Section 22(1) registration threshold as substituted by the Meghalaya GST (Amendment) Act, 2019 - the current figure — INR 2000000 Statute: The Meghalaya Goods and Services Tax Act, 2017 (Meghalaya Act No. 10 of 2017, assented 15 June 2017, published in the Gazette of Meghalaya Extraordinary 19 June 2017), as amended by The Meghalaya Goods and Services Tax (Amendment) Act, 2019 (Meghalaya Act No. 10 of 2019, assented 9 October 2019, gazetted 15 October 2019, Notification No.LL(B).28/2017/723), and by further amendment Acts of 2021, 2022, 2023, 2024 and two in 2025 UPGRADED FROM UNAVAILABLE TO VERIFIED. The earlier note was right that no registration FEE exists - GST registration is free under the central framework - but it stopped there and missed the divergence that actually matters to a Meghalaya client, the registration threshold. Both figures were read on government hosts: section 22(1) as enacted, in the Meghalaya GST Act 2017 PDF on meghalaya.gov.in, and the substitution, in the gazetted Meghalaya GST (Amendment) Act, 2019 on the Taxation Departments own meggst.gov.in. The same amendment Act also omitted the explanation in clause (iii) after section 22(4), and inserted a separate-registration proviso for Special Economic Zone units in section 25. Six later amendment Acts are published on the same page (2021, 2022, 2023, 2024 with a corrigendum, and two in 2025) and were NOT opened, so a later change to section 22 cannot be ruled out.

What is presumptive taxation under section 44AD and 44ADA?

Professional Tax Registration — Himachal Pradesh

Professional Tax Registration — Meghalaya

Indirect tax — state specifics — Meghalaya

Professional Tax Registration — rates and slabs — Mizoram

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