Background
The Puducherry Municipalities (Professional Tax) Rules, 1976 were framed under the Puducherry Municipalities Act, 1973, to regulate the levy and collection of professional tax in the Union Territory of Puducherry. Professional tax is a state-level levy imposed on professions, trades, callings, and employments, enabling municipalities to generate local revenue for civic administration. These rules outline the procedure for assessment, collection, payment, exemptions, maintenance of registers, and enforcement of penalties for non-compliance.
Applicability
The levy is applicable subject to monetary thresholds and exemptions prescribed by the municipal councils under the Act. Government employees, private sector employees, self-employed professionals, traders, and business establishments may fall under its ambit, depending on income or class of employment.
Compliance under the Act in accordance with the Rules
Certificate of Enrolment under Professional Tax as applicable on the Practising Professional in the State of Operations
Notwithstanding anything contained in these rules, any person commencing to exercise any profession, art, trade or calling or to hold any office or appointment within the municipality, shall within thirty days of such commencement give information of the fact to the Commissioner. Every person who is liable to the payment of tax, and who shall change either the designation of his firm or the nature of his profession, art, trade or calling or office or appointment, shall within thirty days of such change, give intimation thereof to Commissioner
Certificate of Registration under Professional Tax as applicable on the Employers in the State of Operations.
Every company which transacts business for not less than 60 days in the aggregate in any half-year is liable to pay professional tax
Any person commencing to exercise any profession, art, trade or calling or to hold any office or appointment within the municipality, shall within thirty days of such commencement give information of the fact to the Commissioner.
Every person who is liable to the payment of tax, and who changes either the designation of his firm or the nature of his profession, art, trade or calling or office or appointment, shall within thirty days of such change, give intimation thereof to the Commissioner.
Employer shall on receipt of a requisition from Commissioner, deduct from salary/wages of person employed by employer or from any sum payable by employer to any person employed as dubash, agent, supplier, contractor, profession tax, as specified in requisition as being due from such employed person
Any deduction made in accordance with provisions Section 151(1),(2) and paid to the municipality shall be treated as a payment of profession tax on behalf of the person from whose salary or wages the deduction was made or on behalf of the person to whom the sum from which the deduction was made is payable, and credit shall be given to him for the amount so deducted on the production of the certificate furnished U/s 151(5) in respect of the profession tax, if any, due from that person for the relevant half-year under this Act.
If, in the opinion of the Commissioner, profession tax will be due from any company or person for any half-year, he shall serve a notice on such company or person either in that half year or in the succeeding half-year requiring the company or the person to furnish within such period, not being less than 30 days as may be specified in the notice a return in Form I showing the income on the basis of which, according to such company or person, it or he is liable to be assessed to profession tax for half-year in question. Thereupon it shall be open to company or person to submit a return showing the income derived by it or him during the half-year for which profession tax claimed or for the corresponding half-year of the previous year and produce any evidence on which the company or person may rely in support of the return made. If the Return is correct, the professional tax shall be levied on basis of the return.
Any sum deducted by an employer shall be paid to the credit of the Municipality within fifteen days from the date of such deduction.
Every employer making deduction of professional tax from salary or wages or other sum u/s 151 shall prepare and file, a return in Form II with the Commissioner within thirty days after the expiry of the half-year
Every person making a deduction shall, at the time of payment of the salary or wages or sum, furnish to the person to whom such payment is made a certificate to the effect that profession tax has been deducted, and specifying the amount so deducted and such other particulars as may be prescribed
Every person making the deduction under sub-section (1) or sub-section
(2) shall prepare and, within such period as may be prescribed after the expiry of the half-year, deliver or cause to be delivered to the Commissioner in the prescribed form and verified in the prescribed manner, a return in writing showing the name and residential address of every person from whose salary or wages deduction was made under sub-section (1) or sub-section (2), and of every person to whom the sum from which such deduction was made is payable, the amount so deducted, and the half-year to which the deduction relates.
Penalties & Punishments
(a) contravenes any provision of any of the rules, or
(b) fails to comply with any of the provisions of the rules, shall be punishable with fine which may extend to one hundred rupees.
Conclusion
The Puducherry Municipalities (Professional Tax) Rules, 1976 provide the legal framework for ensuring systematic collection of professional tax within municipal limits. They balance municipal revenue requirements with compliance obligations for professionals, employers, and employees. Adherence to these rules ensures that individuals and establishments remain legally compliant while contributing to the financial resources of municipalities, which in turn fund essential civic services