Background
The Chhattisgarh Professional Tax Act, 1995 (originally enacted as the Madhya Pradesh Vritti Kar Adhiniyam, 1995 before state reorganization) was introduced to levy a tax on professions, trades, callings, and employments within the State of Chhattisgarh. Professional tax is a form of direct tax imposed by state governments in India under the constitutional authority provided by Article 276 of the Constitution of India. The Act aims to create a uniform and fair system for collection of revenue from salaried individuals, professionals, and businesses operating within the state.
Applicability
The provisions of the Act apply to:
As per Section 3:
Every person who carries on a trade either himself or by an agent or representative or who follows a profession or calling other than agriculture or who is in employment either wholly or in part in Chhattisgarh and who falls under one or the other classes specified in column (2) of the Schedule shall, on the basis specified in the Schedule in respect thereto be liable to pay tax at the rate mentioned against the class of such persons in column (3) of the said Schedule:
Provided that notwithstanding anything contained in the Schedule, where a person is covered by more than one entry of the Schedule, tax under this Act shall be payable by such person at the highest rate of tax specified in respect of such entries.
Compliance requirements under the Act
Every employer (not being an officer of the State Government or the Central Government) liable to pay tax under section 4 shall obtain a certificate of registration from the assessing authority in Form 1.
Every practising professional (other than a person earning salary or wages, in respect of whom the tax is payable by his Employers), liable to pay the tax shall obtain a certificate of registration (by practising professionals) from the assessing authority in Form 3.
Registered Employers shall furnish return in Form 7 for each quarter within 15 days of the month following the quarter along with a copy of challan in proof of payment of tax payable according to such return.
Every Practising Professional shall furnish return in Form 9 by the 30th June in the following financial year along with a copy of challan in proof of payment of tax payable according to such return.
The Employers shall pay within 10 days of the expiry of each previous month an amount equivalent to the tax payable by him in Form 10.
The amount of tax due from practising professionals shall be paid in Form 10 for every year before 30th September of the year. In case of new registration, the payment is required within thirty days of the date of registration.
If a certificate holder (registration or enrolment) shifts their place of work to a new area, they must notify the assessing authority that issued the certificate within 15 days of the move. A copy of this notice must also be sent to the assessing authority having jurisdiction over the new area where the place of work has been relocated.
The Employers or the person holding a certificate of registration shall display conspicuously at his place of work the certificate of registration or a copy thereof issued by the Profession Tax Assessing Authority.
Penalty & Punishment
Conclusion
The Chhattisgarh Professional Tax Act, 1995 serves as an important revenue mechanism for the State Government. By mandating employers and professionals to contribute through professional tax, it ensures a broad-based participation in state development. Compliance with the Act helps in avoiding penalties and legal consequences, while contributing to the fiscal resources of Chhattisgarh. Overall, the Act strikes a balance between generating state revenue and ensuring accountability among individuals and organizations engaged in professional and business activities.
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