Profession Tax Enrollment Amnesty Scheme 2016

The Maharashtra State Tax on Professions, Trades, Calling and Employment Act, 1975 (Profession Tax Act) is implemented with effect from 1st April, 1975. Under this act, every self employed person engaged in any profession, trade, callings and employment in the state of Maharashtra is required to obtain Enrollment certificate registration and pay Profession Tax as prescribed in the law. The Act was introduced to fund Employment Guarantee Scheme started to tackle drought situation in Maharashtra. Though some states have done away with, Maharashtra has continued with it.

In case of an un-enrolled person, the act prescribes payment of Profession Tax upto 8 years prior to enrollment or from the date of liability whichever is earlier.

News in The Hitavada: The front page news in “The Hitavada” on 12th June, 2016 has reported an estimate of Rs. 1000 crore of revenue to the state from recovery of arrears of Profession tax from across the state. As per the report, in Nagpur division itself, around 1.22 lacs person are registered under Profession Tax Act but the department estimates that this leaves out about 40% of the eligible taxpayers.

Background: The govt. is well versed that many persons/societies/institutions/companies have not yet obtained Enrollment Certificate and has not paid Profession Tax into govt. treasury. To encourage them to get register, the state govt. has issued an amnesty scheme for those who are un enrolled.

Salient features of the Amnesty Scheme:

Those persons who are liable but not yet enrolled under the act are eligible to take the benefit of the scheme.
Application for enrollment has to be made before 30th 2016
Benefit under the scheme – Complete waiver of Profession Tax, Interest & Penalty prior to 01/04/2013, i.e Arrears of Profession Tax has to be paid for the year 2013-14, 2014-15 and 2015-16.
The un enrolled persons need to register themselves for the Profession Tax through the Website of Sales tax Department.
On getting registration for PTEC, the person needs to pay Profession Tax.
Amnesty Scheme only for those persons who are un enrolled. Person already registered under P T Act are not eligible to claim any benefit under the amnesty Scheme.
Overall, it is a good scheme for those who are un enrolled to pay P.T for past three years and get immunity from payment of tax for the balance years.