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Professional Tax Slab Rates In Different States

What is Professional Tax?

Professional Tax or PT is a type of tax which is applicable on salaried individuals, Individuals who are practicing professionals such as doctors, lawyers and chartered accountants. PT is applicable state-wise and is commonly applicable for both government and non-government employees.  

Professional tax slab in West Bengal for 2016-17:

The PT rates were changed for the state of West Bengal for the financial year 2016-17. In this post, we will see how the rates are applicable for different professions and at what rates.

1. Employees earning monthly salary or wages: Employees who fall under this category are government or non-government employees who earn monthly salary or are paid as wages. This is applicable on a monthly basis and the gross earnings are considered for calculation of PT.

2. Individuals engaged in professions but are not engaged as an employee: Here the annual gross amount for the preceding year is considered and based on this the PT is applicable.

 The following is a list of individuals who come under this profession: 

• Legal practitioners including solicitors and notaries public
• Medical practitioners including consultants and dentists
• Directors of companies registers under Companies Act
• Technical or professional consultants or service providers 
• Members of Associations recognized under the Forward Contracts (Regulation) Act
• Members of Stock Exchanges recognized under the Securities Contracts (Regulation) Act
• Remisiers recognized by a Stock Exchange
• Holders of permits granted or issued under the Motor Vehicles Act, 1988 for transports vehicles, which are adapted to be used for hire or reward, like auto-rickshaws, three- wheeler goods vehicles, taxi including luxury taxi, trucks, trailers or buses
• Postal agents, chief agents, principal agents, special agents, insurance agents, surveyors and loss assessors
• Jockeys licensed by any Turf Club in the State

For these individuals the PT is applicable at the following rates, calculated annually: 

3. Individuals involved in profession or trade involving supply of goods or services or both: Again, here the annual gross turnover for the preceding year is considered and based on this the PT is applicable.
The following is a list of individuals who come under this profession:  

• Dealers as defined under the West Bengal Sales Tax Act
• Employers and/or Shopkeepers as defined in theWest Bengal Shops and Establishments Act
• Co-operative societies registered or deemed to be registered under the West Bengal Co-operative Societies Act
• Cable operator, signal provider including M.S.O. and cable hirer in cable television network and their agents
• Contractors of all descriptions engaged in any work
• Owners or occupiers or licencees or lessees of factories as defined in the Factories Act
• Owners, occupiers, licencees or lessees of internet cafe
• Owners, occupiers, licencees or lessees of weighbridge
• Owners of Subscribers Trunk Dialling (STD) or International Subscriber Dialling (ISD) booths
• Owners or occupiers of cold storages
• Owners or occupiers or licencees or lessees of tutorial homes and training institutes of any description
• Owners or occupiers or licencees or lessees of residential hotels including guest houses, lodges, holiday homes or any other similar property let out on rent or against user fee
• Owners or occupiers or licencees or lessees of cinema houses and theatres including multiplexes, video parlours, video halls, video rental libraries
• Licensed vendors of country liquor, opium, bhang, pachwai or toddy
• Owners, occupiers, licencees or lessees of non-air conditioned beauty parlours or spa or hair dressing saloons
• Persons providing courier services
• Partnership firms constituted under Indian Partnership Act and limited liability partnership firms established under Limited Liability Partnership Firms Act

PT for such individuals is applicable as follows: 

4. Individuals involved in profession or trade: In this case the annual gross turnover is not considered and based PT is applicable at a fixed amount of Rs. 2,500 for all those individuals who fall under this category. This includes: 

• Estate agents or promoters or brokers or commission agents or del credere agents or mercantile agents
• Stevedores, clearing agents, customs agents, licensed shipping brokers or licensed boat suppliers
• Occupier of a jute mill, or shipper of jute, as defined in the West Bengal Sales Tax Act, 1994 or the West Bengal Value Added Tax Act
• Occupiers, owners, lessees or licensees of rice mills
• Owners or lessees of petrol/diesel/gas filling stations and service stations and agents or distributors thereof including retail dealers of liquified petroleum gas
• Owners or occupiers of distilleries, breweries and bottling plants
• Licensed vendors of foreign liquor
• Owners, licencees or lessees of premises let out for social functions
• Air-conditioned beauty parlours or spa
• Resorts, gym, slimming centres, and wellness centres of all types and descriptions
• Air-conditioned hair dressing saloons
• Air-conditioned restaurants
• Licensed money lenders under the Bengal Money Lender Act
• Individuals or institutions conducting chit funds and lotteries and authorised stockists of lottery tickets
• Banking companies as defined in the Banking Regulation Act
• Companies registered under the Companies Act, 1956 or the Companies Act, 2013
• Persons providing services in relation to the security of any property or person, by providing security personnel or otherwise and including the provision of services in relation to investigation, detection or verification of any fact or activity
• Bookmakers and trainers licensed by Royal Calcutta Turf Club or any other Turf Club in the State
• Owners or occupiers or licencees or lessees of nursing homes, pathological laboratories including diagnostic centres.

 For all these individuals, A fixed PT of Rs. 2,500 is applicable per annum.