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Indirect Taxes
Sales Tax Update
Highlights of Profession Tax Amnesty Scheme, 2007
In the Budget Speech of 2007–08, the Finance Minister had
proposed Profession Tax Amnesty. On 10th August 2007, the Government of
Maharashtra has issued G. R. PT-1107/PK 16/KAR-3 dated 10-8-2007 for much
awaited Amnesty Scheme under the Profession Tax Act, 1975.
State of Maharashtra has declared Amnesty for the tax
interest and penalty payable under the Profession Tax Act. This amnesty is
applicable to the Registered Profession Tax employers as also to the persons
who are enrolled under the Profession Tax Act by virtue of their carrying on
trade, profession or adventure in the State of Maharashtra. Before I go to the
amnesty scheme let me briefly explain who is liable under the Profession Tax
Act.
Enrolment under profession tax
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Registered
Dealer carrying on business in the State of Maharashtra; i.e., a Proprietor,
all the Partners (partnership firm is not liable for enrolment) all the
Directors, Limited Companies etc. who are carrying on business or Profession
in the State of Maharashtra are liable in personal capacity for enrollment.
The liability to get enrolled will have to be determined in each cases
depending on the facts of the case.
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Doctors,
lawyers, technical and Profession Consultants, agents, Diamond Polishers,
Member of Stock exchange, building contractors, estate agents, brokers,
plumbers, trainers licence by Royal Western Club, jockeys, self employed
person in the motion picture industry, theatre, TV modern or advertisement
industry dealers registered under the MVAT Act etc. are also liable for
enrolment.
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All the
Professionals mentioned in clause (b) were exempted from payment of tax up to
2 years till 31-3-2006. Therefore these Professionals were not liable for
payment of any Professional Tax for the first two years of their practice.
However with effect from 1-4-2006 from the date of their enrolment as
Advocates or Medical Practitioners' CA etc. they are liable for payment of Rs.
2,500/- p.a. if they carry on the profession in the State of Maharashtra.
Registration under profession tax
Apart from the Profession Tax payable as enrolment all the
persons who employ even a single person and pay the minimum salary prescribed
under the PT Act have to deduct from the salary of an employee the prescribed
Profession Tax and deposit in the Govt. Treasury. The minimum amount of salary
was Rs. 800/- up to 1-5-1993. From 1-5-1993 to 30-4-1994 the minimum amount
was raised to Rs. 1,000/- . From 1-10-1995 to 30-9-1996 the minimum amount was
further raised to Rs. 1,500/- . And from 1-10-1996 to 31-3-2006 the minimum
salary prescribed for deduction of Profession Tax was Rs. 2,000/-. With effect
from 1-4-2006 this minimum salary subject to PT deduction by the employer is
raised to Rs. 2,500/-. The registered employers will have to pay the tax for
all the past periods right from 1975 to the date of application of amnesty,
whether deducted from salary or not, whereas the employers who are not
registered so far will have to only pay the profession tax for the salary paid
from 1-4-2002 till date. Various slabs for calculation of profession tax will
have to be seen in each case and tax, interest and penalty as per scheme be
paid accordingly
The other features of the Amnesty scheme are given
hereunder. The readers are requested to await for further instructions on the
scheme by the CST.
For Unregistered Persons or Employers –
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They should
enrol or register within the period of operation of the Scheme
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Pay the tax due
for the period from 1-4-2002 to 31-3-2007 (in case of enrolled person) and
from 1-4-2002 to 31-3-2007 (in case of registered employers) along with 10% of
the interest/penalty due or payable for the above period.
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Complete waiver
of the tax, interest and penalty for the period up to 31-3-2002 would be
granted to such beneficiaries.
For Registered Employers
For Enrolled Persons
Others conditions
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Application has
to be filed for availing Amnesty. Amnesty won’t be granted even if all the
conditions are fulfilled but application is not filed. The Forms of
application is prescribed in Trade Circular issued by the Sales tax
Department.
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If the tax
amount has been already paid before the commencement of the Scheme and only
interest/penalty is yet to be paid, 10% of the unpaid interest/ penalty has to
be paid to avail the benefit of the Scheme.
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Therefore those
who have paid the tax but late must calculate and pay the request portion of
interest and penalty.
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No refund will
be granted or given on account of this Scheme.
If the appeal is filed for the period for which amnesty is
to be sought, the same needs to be withdrawn before making application under
this Amnesty scheme.
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