Question 1

What is the TDS threshold on professional fees?

Accepted Answer

Chhattisgarh levies professional tax under its own 1995 Act. An employer must obtain a certificate of registration and must deduct the tax monthly from each employee's salary or wage before paying it - and is liable to pay it over whether or not the deduction was actually made. An employer with several places of work in the state makes ONE application, nominating a principal place of work. Threshold: Every employer disbursing salary or wage to a person liable under the Schedule must register (section 8(1), application in Form 1 under rule 3(1)). Employees whose annual salary or wage does not exceed Rs 1,00,000 are Nil-rated, so an employer none of whose staff crosses that line deducts nothing - but the Act does not exempt the employer from registering on that ground. Fee basis: NO registration or enrolment fee is prescribed. The Chhattisgarh Professional Tax Rules, 1995 were read in full and contain no fee for a certificate of registration - the only occurrence of the word 'fee' in the Rules is 'composition fees'. The employer's cost is the tax itself, deducted from employees under the Schedule, not a charge for registering Deadline: Tax is deducted monthly from salary or wage before payment; returns and payment by the employer are governed by rule 11. Statute: Chhattisgarh Professional Tax Act, 1995 (Chhattisgarh Vritti Kar Adhiniyam, 1995), sections 3, 4 and 8, with the Chhattisgarh Professional Tax Rules, 1995, rule 3 UPGRADED FROM INDICATIVE TO VERIFIED, and a dead-host finding from the previous run is corrected. comtax.cg.nic.in was recorded as presenting an unverifiable certificate chain. It does not: it serves over HTTPS with a valid certificate and its documents download cleanly. The absence of a registration fee is therefore now a positive finding from the Rules themselves rather than an inference from silence. That is squarely inconsistent with the department publishing this Act, these Rules and this registration form on its live site under the heading 'Chhattisgarh Professional Tax Rules, 1995'. The department's own material is preferred here. But the Act text on the site carries amendments only up to the Profession Tax (Amendment) Act, 2001, so whether a later notification under section 6 (Power to exempt) has since exempted some or all classes was NOT established, and that is the specific thing a later pass should check. THE COMPLETE SCHEDULE WAS ALSO READ AND IS RECORDED HERE so it is not lost, since professionalTaxSlabs was not a target in this batch. Schedule to section 3, Serial No. 1, persons in employment, rate of tax per annum: annual salary or wage not exceeding Rs 1,00,000 - Nil; exceeding Rs 1,00,000 but not exceeding Rs 1,50,000 - Rs 1,560 (Rs 130 per month); exceeding Rs 1,50,000 but not exceeding Rs 2,00,000 - Rs 1,800 (Rs 150 per month); exceeding Rs 2,00,000 but not exceeding Rs 2,50,000 - Rs 2,400 (Rs 200 per month); exceeding Rs 2,50,000 - Rs 2,500 (Rs 208 per month for eleven months and Rs 212 for the twelfth month). Serial No. 2, by years of standing, for legal practitioners including solicitors and notaries public, medical practitioners including medical consultants and dentists, technical and professional consultants including architects, engineers, RCC consultants, plumbers, tax consultants, chartered accountants, actuaries and management consultants, chief/principal/special/insurance agents, surveyors or loss assessors licensed under the Insurance Act 1938, all contractors, and commission agents, dalals and brokers other than estate workers: less than two years - Nil; two years or more but less than five - Rs 1,000; five years or more but less than ten - Rs 1,500; ten years or more - Rs 2,500. The PDF interleaves the Schedule columns, so the band upper limits print against the adjacent rate cell; the reconstruction above is checked by arithmetic that cannot hold by accident - 130x12=1560, 150x12=1800, 200x12=2400, and 208x11+212=2500, all matching the printed annual figures. Note also that the Act as published reprints the superseded pre-2001 and pre-1999 ten-band versions of Serial No. 1 directly beneath the current one as footnotes; none of those repealed rates is recorded. By the proviso to section 3, a person covered by more than one entry pays at the HIGHEST applicable rate, not cumulatively.

Question 2

Professional Tax Registration — Andhra Pradesh

Accepted Answer

An employer in Andhra Pradesh must obtain a professional tax registration certificate within 30 days of becoming liable, and must then deduct and remit monthly. Employees on Rs 15,000 a month or less are Nil-rated, so a small employer may register and deduct nothing. Threshold: Registration within 30 days of liability arising, in Form 1 (employers) or Form 2, filed with the assessing authority or electronically. Deduction bites only above Rs 15,000 monthly salary: up to Rs 15,000 Nil, Rs 15,001 to Rs 20,000 Rs 150 a month, above Rs 20,000 Rs 200 a month. Fee basis: NO registration or enrolment fee is charged for an employer's professional tax registration certificate. The employer's own recurring cost is the tax it deducts and remits, not a charge for registering. Do not confuse this with the Rs 2,500 a year that a director of a company pays as his OWN professional tax enrolment - one commercial source presents that figure under a heading reading 'Registration Fee: Rs 2,500 per director', which is misleading; it is a tax on the individual, not a fee for the employer's registration Deadline: Monthly remittance and return by the 10th of the following month. For a person enrolled (rather than registered as an employer) before the start of a year or by 31 May of that year, the tax is payable by 30 June; a later enrollee pays within one month of enrolment. Statute: The Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987 UPGRADED FROM INDICATIVE WITH NO FIGURE TO INDICATIVE WITH A SETTLED ANSWER: the answer to 'what is the registration fee' is that there is none. Two independent commercial sources were read separately. They agree exactly on the Act name and on all three slab bands - Nil up to Rs 15,000, Rs 150 from Rs 15,001 to Rs 20,000, Rs 200 above Rs 20,000 - which is what gives confidence in the pair. ONE OF THEM MISLEADS AND THE DISAGREEMENT IS RECORDED RATHER THAN AVERAGED: it prints 'Registration Fee: Rs 2,500 per director'. That is not a registration fee. It is the annual professional tax payable by a director of a company in his own right, which is capped at Rs 2,500 by Article 276 of the Constitution - the same cap that binds every state. The other source, asked directly about registration and enrolment fees, states that none is specified and describes the process as filing Form 1 or Form 2 within 30 days. The fee is therefore recorded as nil-with-explanation rather than as Rs 2,500.

Question 3

Professional Tax Registration — Assam

Accepted Answer

Employers of shops/establishments and other listed classes of persons (dealers, occupiers of factories, companies, firms, professionals, etc.) are separately liable to register and pay professional tax on their own account, in addition to any duty to deduct and remit tax on behalf of salaried employees. Threshold: Every employer/person falling within a class listed in the Schedule to the Act must register; for 'Employers of shops and establishments' (Entry 8) not otherwise covered as dealers, liability is slabbed by number of persons employed. Fee basis: slab by number of employees (Entry 8) or a flat per-annum amount for other listed classes (e.g. companies, firms, professionals — generally Rs. 2,500/annum) Slabs: Employer of shop/establishment with no employees — INR 0; Employer with not more than 5 employees — INR 300; Employer with more than 5 but not more than 10 employees — INR 1500; Employer with more than 10 employees — INR 2500 Renewal: Annual Statute: The Assam Professions, Trades, Callings and Employments Taxation Act, 1947 Rates per the Schedule to the Act as currently published by the Commissionerate of Taxes (effective from 15-10-2014 for the salary/wage and shop-employer entries; 01-04-2008 for dealer turnover slabs). Most other listed classes (companies, firms, professionals, factory occupiers above 15 workers, etc.) pay a flat Rs. 2,500 per annum.

What is the TDS threshold on professional fees?

Professional Tax Registration — Chhattisgarh

Professional Tax Registration — Andhra Pradesh

Professional Tax Registration — Assam

Professional Tax Registration — rates and slabs — Assam

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