Profession Tax is a state-level tax that applied to paid employees and professionals, comprising of the chartered accountants, lawyers and doctors. The states are Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. Registration is obligatory within 30 days of employing staff in a business or, if the professionals, 30 days from the begin of the performance. This tax requires to be withhold from the salary or salary paid; the amount differs by state and amount, but is limited at Rs. 2500 per annum.
If you have workers in more than one state, then at the time you require to acquire a Profession Tax Registration in every state. However, the rate at which it be required to be salaried will differ. This creates it unwieldy for various types of small businesses to fulfill with. Even, that several north Indian states do not charge Profession Tax at all.