THE MAHARASHTRA STATE TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 1975

The Maharashtra State Tax on Profession, Trade, Callings and Employment Act, 1975 provides for levy and collection of Profession Tax. Under Maharashtra Profession Tax Act, every covered establishment is required to obtain PT Registration Certificate and PT Enrollment Certificate 

SHORT TITLE, EXTENT AND COMMENCEMENT

a.       This Act maybe called the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.

b.        It extends to the whole of the State of Maharashtra.

 It shall be deemed to have come into force on the 1st day of April 1975.

LEVY AND CHARGE OF TAX

(1)   Subject to the provisions of article 276 of the Constitution of India and of this Act, there shall be levied and collected a tax on professions, trades, callings and employments for the benefit of the State.

 

(2)   Every person excluding firms (whether registered under the Indian Partnership Act, 1932,

or not)    and Hindu undivided family engaged actively or otherwise in any profession, trade, calling or employment and falling under one or the other of classes mentioned in the second column of Schedule I shall be liable to pay to the State Government the tax at the rate mentioned against the class of such persons in the third column of the said Schedule:

 

Provided that, the tax so payable in respect of any one person shall not exceed two thousand and five hundred rupees in any year:

 

Provided further that, entry 23 in Schedule I shall apply only to such classes of persons as may be specified by the State Government by notification in the Official Gazette, from time to time

EMPLOYER'S LIABILITY TO DEDUCT AND PAY TAX ON BEHALF OF EMPLOYEES:

The tax payable under this Act, by any person earning a salary or wage, shall be deducted by his employer from the salary or wage payable to such person, before such salary or wage is paid to him, and such employer shall, irrespective of whether such deduction has been made or not, when the salary or wage is paid to such persons, be liable to pay tax on behalf of all such persons:

 

Provided that, if the employer is an officer of Government the State Government may, notwithstanding anything contained in this. Act; prescribe by rules the manner in which such employer shall discharge the said liability:

 

Provided further that, where any person earning a salary or wage -

(a)             is also covered by one or more entries other than entry 1 in Schedule I and the rate of tax under any such other entry is more than the rate of tax under entry 1 in that Schedule, or

 

(b)             is simultaneously engaged in employment of more than one employer, and such

person furnishes to his employer or employers a certificate in the prescribed form declaring inter alia, that he Shall get enrolled under sub-section (2) of section 5 and pay the tax himself, than the employer or employers of such person shall not deduct the tax from the salary or wage payable to such person and such employer or employers, as the case may be, shall not be liable to pay tax on behalf of such person.

 

REGISTRATION AND ENROLMENT:

(1)   Every employer (not being an officer of Government liable to pay tax under section 4, or

under sub-section (5) of section 10A shall obtain a certificate of registration from the prescribed authority in the prescribed manner.

 

(2)   Every person liable to pay tax under this Act (other than a person earning salary or wages,

in respect of whom the tax is payable by his employer), shall obtain a certificate of enrolment from the prescribed authority in the prescribed manner.

 

            (2A) Notwithstanding anything contained in this section and the last preceding section,

Where person is a citizen of India and is in employment of any diplomatic or consular

office or trade commissioner of any foreign country situated in any part of the State,

such person, if liable to pay tax, shall obtain a certificate of enrolment as provided in

sub-section (2) and pay the tax himself.

 

(3)   Every employer or person required to obtain a certificate of registration or enrolment shall, within thirty days from the date of first publication of this Act in the Official Gazette, or, if he was not engaged in any profession, trade, calling or employment on that date within thirty days of his becoming liable to pay tax, or, in respect of a person referred to in sub-section (2) or (2A), within thirty days of his becoming liable to pay tax at a rate higher or lower than the one mentioned in his certificate of enrolment, apply for a certificate of registration or enrolment, or a revised certificate of enrolment, as the case may be, to the prescribed authority in the prescribed form, and the prescribed authority shall, after making such inquiry as may be necessary within thirty days of the receipt of the application (which period in the first year from the commencement of thiss Act shall be extended to ninety days), if the application is in order grant him such certificate.

 

Provided that, where on account of revision of rate of tax the person liable to pay tax is required to pay tax at a rate higher or lower than the one mentioned in the certificate of enrolment, the rate of tax mentioned in such certificate shall be deemed to have been revised accordingly on the date of such revision of rate of tax as aforesaid; and pending such person applying for a revised certificate of enrolment and grant of such certificate to him, such person shall, notwithstanding anything contained in this Act, be liable to pay tax at such revised rate.

 

(4)   The prescribed authority shall mention in every certificate of enrolment the amount of tax payable by the holder according to Schedule I, and the date by which it shall be paid, and such certificate shall, subject to the provisions of the proviso to sub-section (3), serve as a notice of demand for purposes of section 10.

 

(5)   Where an employer or a person liable to registration or enrolment has failed to apply for such certificate within the required time, the prescribed authority may, after giving him a reasonable " opportunity of being heard, impose penalty of rupees five for each day of delay in case of such employer and rupees two for each day of delay in case of such person.

 

(6)   Where an employer or a person liable to registration or enrolment has given false information in any application submitted under this section, the prescribed authority may, after giving him a reasonable opportunity of being heard, impose a penalty equal to three times the tax payable under the Act.

RETURNS

(1)    Every employer registered under this Act shall furnish to the prescribed authority ,a return in such form, for such periods and by such dates as may be prescribed, showing therein the salaries and wages paid by him and the amount of tax deducted by him in respect thereof --

(2)    Every such return shall be accompanied by a treasury challan in proof of payment of full amount of tax due according to the return, and a return without such proof of payment shall not be deemed to have been duly filed.

(3)    Where an employer has without reasonable cause failed to file such return within the required time, the prescribed authority may, after giving him a reasonable opportunity of being heard, impose upon him a penalty of rupees three hundred per return.

 

PAYMENT OF TAX

(1)   the tax payable under this Act shall be paid in the prescribed manner.

(2)   The amount of tax due from enrolled persons for each year as specified in their enrollment certificates shall be paid:—

 

(a)        in respect of a person who stands enrolled before the commencement of a year or is enrolled on or before the 31st May of a year	Before 30th June of that year or such later date as the Commissioner may by notification in the Official Gazette, specify in respect of that year.
(b)        in respect of a person who is enrolled after the 31 st May of a year	Within one month of the date of enrolment.
(c)       In respect of a person who is enrolled and the rate of tax at which he is liable to pay tax is revised.	Within one month of the date of such revision.

 

(a)   Subject to the rules, any person holding a certificate of enrollment and liable to pay tax at the rate of rupees 1700, 2200 or as the case may be, 2500 per annum, may discharge his liability for payment of tax under this Act for a total continuous period of five years by making payment in advance of a lump sum amount equal to four times of such rate of tax on or before the 30th June of the year.

(b)   If any such lump sum payment is not made on or before Such date, but is made on or before the end of the year, such person shall be liable to pay an additional lump sum amount for the period of delay at the rate of rupees 200/- per month, in addition to the amount of lump sum payable under clause (a)

(c)   Any increase or decrease in the rate of tax shall not vary the liability of tax payable by such person who has paid such lump sum amount in lieu of tax.

 

CONSEQUENCES OF FAILURE TO DEDUCT OR TO PAY TAX

(1)   If an employer (not being an officer of Government) fails to pay the tax as required by or under this Act, he shall without prejudice to any other consequences and liabilities which he may incur, be deemed to be an assessee in default in respect of the tax.

(2)   Without prejudice to the provisions of sub-section (1), an employer referred to in that sub-section shall be liable to pay simple interest at one and a quarter per cent of the amount of the tax payable for each month for the period, for which the tax remains unpaid.

            (2A) Where the amount of tax as assessed under section 7 or as found payable in view of an

order passed under section 13 or 14 is more than the amount of tax paid by the employer, then such employer shall be liable to pay simple interest on the amount of difference of tax at the rate and in the manner laid down in sub-section (2).

(3)   If an enrolled person fails to pay the tax as required by or under this Act. He shall be liable to pay simple interest at the rate and in the manner laid down in sub-section (2).

(4)   The Commissioner may, subject to such conditions and limitations as may be prescribed and for reasons to be recorded in writing remit the whole or any part of the interest payable in respect of any period under this section.

 

PENALTY FOR NON-PAYMENT OF TAX

If an enrolled person or a registered employer fails, without reasonable cause, to make

payment of any amount of tax, within the required time or date as specified in the notice of

demand, the prescribed authority may, after giving him a reasonable opportunity of being

heard, impose upon him a penalty equal to ten per cent, of the amount of tax due.

 

PRODUCTION AND INSPECTION OF ACCOUNTS AND DOCUMENTS AND SEARCH OF PREMISES

(1)   Any authority under this Act may inspect and search any premises, where any profession, trade, calling or employment liable to taxation under this Act is carried on or is suspected to be carried on and may cause production and examination of books, register, accounts or documents relating thereto and may seize such books, registers, accounts or documents as may be necessary:

(2)   Provided that, if the said authority removes from the said premises any book, register, account or document, he shall give to the person in charge of the places, a receipt describing the book, register, account or document so removed by him and retain the same only for so long as may be necessary for the purposes of examination thereof or for a prosecution.

 

OFFENCES AND PENALTIES

Any person or employer who, without sufficient cause, fails to comply with any of the provisions of this Act or the rules framed hereunder shall, on conviction, be punished with fine not exceeding five thousand rupees, and, when the offence is a continuing one, with fine not exceeding fifty rupees per day during the period of the continuance of the offence.

 

OFFENCES BY COMPANIES

Where an offence under this Act has been committed by accompany, every person who at the time the offence was committed was in charge of and was responsible to the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

 

Provided that, nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all the due diligence to prevent the commission of such offence.

 

Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.