All About Professional Tax in Gujarat

The Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976

A. 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.

B. Certificate of Registration by Employers

Every employer not being an officer of Government liable to pay tax under this Act shall obtain a certificate of registration from the prescribed authority in the prescribed manner.

An application for obtaining a certificate of registration shall be made in Form I within sixty days from the date of commencement of profession, trade, calling or employment. An applicant having place of work within the jurisdiction of different prescribed authorities shall make an application for registration separately to each authority in respect of his place of work within the jurisdiction of that authority. On receipt of an application for registration, the prescribed authority shall grant to the applicant a certificate of registration in Form 2 if it is satisfied that the application is in order and the necessary particulars have been furnished by the applicant.

C. Certificate of Enrolment

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.

An application for obtaining a certificate of enrolment shall be made in Form 3, within sixty days from the date of commencement of his profession trade, calling or employment. An applicant, having a place of work in the jurisdiction of more than one Designated Authorities, shall apply for issuance of certificate of enrolment to each such Designated Authority where his place of business is situated and a separate certificate of enrolment shall be issued by each prescribed Authority.

D. Payment of Taxes:

If a person is involved in practising of any profession, trade, calling or employment and falls into any of the classes listed in Sr. no. 2 of Schedule 1, he/she is liable to pay professional tax @ Rs. 2500/- per annum. The amount of tax due from enrolled persons for each year as specified in their enrolment certificates shall be paid-

  • in the case of a person who stands enrolled before the commencement of a year or is enrolled on or before the 31st day of August of a year, before the 30th day of September of that year, and
  • in the case of a person who is enrolled after the 31st day of August of a year, within one month of the date of enrolment.

The 2022 amendment specifies the following rate of professional tax for salaried employees:

E. Returns:

Returns for Professional Tax in Gujarat are filed depending upon number of employees and permission to file Annual Return as follows:

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