Background
The Jharkhand Tax on Professions, Trades, Callings and Employments Act, 2011 was enacted by the Government of Jharkhand with the objective of levying a tax on individuals engaged in various professions, trades, callings, or employments within the state. This legislation enables the state to generate revenue that can be utilized for public welfare and developmental activities, particularly for weaker sections of society. The Act provides a structured framework for registration, enrolment, assessment, return filing, and payment of professional tax by employers and self-employed individuals. To ensure effective implementation, the Jharkhand Tax on Professions, Trades, Callings and Employments Rules, 2012 were notified, detailing the procedural aspects under the Act. Subsequently, the Jharkhand Tax on Professions, Traders, Calling and Employment (Amendment) Rules, 2020 were introduced to modernize and digitize the compliance system. The 2020 amendments brought significant reforms such as mandatory electronic registration and enrolment, online amendment of certificates, and automation of return generation. These changes were aimed at simplifying the process, reducing manual intervention, and improving transparency and efficiency in tax administration.
Applicability
The Act applies to every individual or employer engaged in any profession, trade, calling, or employment within the state of Jharkhand. All salaried employees, wage earners, professionals, and business owners whose earnings exceed the prescribed threshold are liable to pay professional tax under this Act. Employers are responsible for deducting the tax from the salaries of their employees and remitting it to the state government within the specified time frame.
For self-employed persons or independent professionals, enrolment under the Act is mandatory, and they must pay tax directly to the department as per the applicable rates. The Act also prescribes the requirement for obtaining a Certificate of Registration for employers and a Certificate of Enrolment for individuals, both of which must be obtained electronically through the designated government portal within sixty days of becoming liable to tax. The 2020 Amendment Rules emphasize online compliance, making it mandatory to file applications, returns, and amendments electronically through designated forms such as Form JPT-01 (for registration/enrolment), Form JPT-01A (for amendment of registration/enrolment), and Form JPT-04 (for quarterly return). Any changes in registration particulars must be updated within fifteen days. Failure to comply attracts penalties and interest as prescribed under the Act and Rules.
Compliance requirements under the Act in accordance with the Rules
Every employer as specified in the proviso of Section 5 (other than a person earning salary or wages, in respect of whom the tax is payable by his employer), liable to pay the tax under this Act, shall also obtain a certificate of enrolment from the prescribed authority in the prescribed manner.
Certificate of Registration (Section 7(1), Rule 3(1))
Every assessee (other than government servant employer) having place of work within the jurisdiction of registering authorities and required under sub section (1) and or sub section (2) of Section 7 of the Act to obtain a certificate of registration and or enrolment; shall make true, correct and complete application for registration and or enrolment to such registering authorities, separately in respect of his place of work within the jurisdiction of the respective circles, electronically in form JPT 01 along with necessary documents.
On receipt of the application for registration or enrolment or both through electronic system by the applicant in From-JPT-01 a system based registration certificate in Form JPT-02 shall be auto generated within 24 hours.
Form JPT-01A: Amendment of Certificate of Registration/Enrolment (Rule 5)
Where there is any change in any of the furnished in the application for registration and or enrolment in Form JPT 01, either at the time of obtaining the certificate for registration and or enrolment or as amended from time to time; the registered and or the enrolled person shall, within fifteen days of such change, submit an application for amendment electronically in Form JPT -01A along with necessary documents relating to such change. Also where the registering authority issues direction under clause (b) of sub rule (2) of the rule 3 of these rules, the registered and or the enrolled person shall, within fifteen days of such direction, submit an application for amendment electronically in Form JPT-01A along with necessary documents.
Payment of Tax and Return by Enrolled Persons (Section 6 & 8, Rule 13)
The Enrolled persons shall make online payment of tax, interest and penalty (if any) through departmental portal in Form-JPT-03 within 15 days of end of quarter and said amount shall be deposited into the Head of accounts-0028/107-(Taxes on Professions, Trades, Callings and Employment). After payment of tax liability successfully, system will generate the return in Form JPT-04 automatically. Such return shall be considered deemed to be filed by the assessee for the specified period.
Form JPT-04: Quarterly PT Return by Employer and Payment of Tax (Section 5 & 8, Rule 13)
The employer shall make online payment of tax, interest and penalty (if any) through departmental portal in Form-JPT-03 within 15 days of end of quarter and said amount shall be deposited into the Head of accounts-0028/107-(Taxes on Professions, Trades, Callings and Employment). After payment of tax liability successfully, system will generate the return in Form JPT-04 automatically. Such return shall be considered deemed to be filed by the assessee for the specified period.
One-time Advance Payment of Professional Tax (Section 5 & 8, Rule 13)
The assessee has the option for one time advance payment of professional tax for the whole year subject to the condition that such payment shall be made in the first quarter of the financial year.
Form JPT-06: Deduction of Tax from Salary/Wages (Rule 15)
Tax must be deducted from employees’ salaries/wages quarterly. February’s salary cannot be drawn unless tax for March–February or the relevant period is fully deducted. A statement in Form JPT-206, in two copies, must be enclosed with the pay bill to confirm the deduction.
Maintain Register of Salary/Wages Paid to Employees (Section 16, Rule 16(i))
Every employer liable to pay tax shall maintain a register in which shall be entered the amount of salary and wages paid to each of the person in his employment and the said register shall contain a column in which shall be shown the amount deducted from the salary and wages of the employee on account of the tax.
Exhibition of Certificate of Registration/Enrolment (Rule 8)
The holder of the certificate of registration or the certificate of enrolment shall display conspicuously at his place of work the certificate of registration or the certificate of enrolment or a copy thereof.
Intimation of Shifting of Place of Work (Rule 26)
If the holder of a certificate of registration or a certificate of enrolment in one area shifts his place of work to another area, he shall within fifteen days of such shifting, [shall apply for online amendment in the registration/ enrolment certificate as per rule 5 of this Rules] give notice thereof to the prescribed authority from whose office the certificate was issued, and shall, at the same time, send a copy of such notice, etc., to the prescribed authority exercising jurisdiction over the area to which the place of work is being or has been shifted.
Penalty & Punishment
1) U/s 7(5): Where an assessee liable to registration or enrolment bas willfully failed to apply for such certificate within the time, specified in sub-section (3), the prescribed authority may, after giving him a reasonable opportunity of being heard, impose a penalty which shall not be less than rupees ten but which shall not exceed rupees twenty for each day of delay in case of any employer and not exceeding rupees five for each day of delay in case of others
2) U/s 7(6): For false information, impose a penalty which shall not be less than rupees one hundred but which shall not exceed rupees one thousand.
3) U/s 8(3): For failure to submit return within the specified period, a penalty which shall not be less than rupees fifty but which shall not exceed rupees five hundred for each day of delay shall be imposed on employer
4) Rule 34: Any person contravening any provision of these rules shall be punishable with a penalty, which may be imposed by the authority, after allowing the person concerned an opportunity in Form JPT 301 of being heard, not exceeding five hundred rupees and where the contravention is a continuing one, with a daily penalty of a sum not exceeding rupees five subject to a limit of rupees five hundred in a year during the continuance of contravention
5) Sec 21: Any assessee who. without sufficient cause, fails to
comply with any of the provisions often Act or· the rules made thereunder shall, on conviction, be punished with fine which shall not be less than five hundred rupees but shall not exceed five thousand rupees, and when the offence is a continuing one, with fine which shall not be less than ten rupees but shall not exceed twenty rupees per day during the period of the continuance of the offence
Conclusion
The Jharkhand Tax on Professions, Trades, Callings and Employments Act, 2011, along with its 2020 Amendment Rules, represents a significant step towards improving revenue collection and ensuring regulatory compliance through digital transformation. By introducing an online framework for registration, payment, and reporting, the state has enhanced ease of doing business while ensuring accountability and transparency. The Act ensures that professionals and businesses contribute equitably to the state’s revenue base, thereby supporting public welfare initiatives.
In conclusion, this legal framework strikes a balance between administrative efficiency and taxpayer convenience. It not only enforces fiscal discipline among professionals and employers but also simplifies compliance through automation, aligning with the government’s broader goal of digital governance and transparent tax administration in Jharkhand.